Ethereum Future Growth Mirrors Early Amazon and Microsoft

Key Points

• Ethereum Future Growth Mirrors Early Amazon and Microsoft
• Analysts say ETH is undervalued and poised for high growth.
• Ethereum’s focus on security echoes Amazon’s long-term strategy.
• Despite a market downturn, institutions are accumulating ETH.

Ethereum (ETH) has been struggling in the short term, but analysts believe it could be one of the biggest high-growth assets of the decade. Experts compare Ethereum’s current state to early Amazon (AMZN) and Microsoft (MSFT), arguing that investors are mispricing ETH.

Popular crypto analyst DeFi Dad took to X (formerly Twitter) to emphasize this, saying investors are treating Ethereum like a slow-growing company such as Procter & Gamble (PG) rather than a high-growth asset.

It’s a huge mistake I see many investors make, pricing ETH like a value stock against a long list of L1s who enjoy hyper-speculative growth valuations.

If you’re gonna price every other L1 like a growth stock, don’t be dumb and apply the same fair shake to valuing ETH, even… https://t.co/tZz2D7JOts

— DeFi Dad ⟠ defidad.eth (@DeFi_Dad) March 17, 2025

Ethereum’s security-first approach makes it a trusted settlement layer for blockchain applications. This long-term vision is similar to how
Amazon slowly built its e-commerce empire, prioritizing reliability over rapid user acquisition.

Ethereum’s Layer 2 Expansion Fuels Growth

Ethereum’s Layer 2 (L2) scaling solutions are another factor fueling its long-term potential. While L2s are not yet generating massive profits for Ethereum, they act as an essential distribution network—just like Amazon’s extensive logistics infrastructure helped the company dominate e-commerce.

The network’s transformation into a trusted institutional asset has also been crucial. Banks, hedge funds, and even skeptical Wall Street investors are now considering Ethereum for large-scale blockchain applications.

Another crypto analyst, Ignas, compared Ethereum’s growth trajectory to that of companies like Uber and Netflix:

$ETH is the only L1 valued on fundamentals

XRP FDV is higher than $ETH without any real adoption besides narrative.

ETH could catch a bid if people start to believe in the L2 scaling endgame.

It’s like growth stocks (Uber, Netflix etc): First get users, than revenue comes. https://t.co/0bVjPDkGeB

— Ignas | DeFi (@DefiIgnas) March 17, 2025

If L2 adoption increases, Ethereum could see massive price surges as investors begin recognizing its potential in the blockchain industry.

For instance, other major blockchain assets have also seen surprising growth, such as XRP surpassing Ethereum’s fully diluted valuation, proving how quickly market dynamics can shift in the crypto space.

Is Ethereum Stuck in a Downtrend? Market Trends Suggest So

Despite Ethereum’s long-term potential, its short-term performance has been disappointing. Since late 2024, ETH has lost nearly 30% of its value in just a month and continues to struggle against market pressure.

As of today, Ethereum is trading around $1,948, reflecting a modest 2.6% increase in the last 24 hours. However, its daily active addresses recently hit a yearly low, raising concerns about declining adoption and inflation risks.

Ethereum Price Performance. Source: Techtoken

Additionally, Ethereum’s market dominance has fallen to levels last seen in 2020, signaling weaker investor confidence.

A major setback came from Standard Chartered, which slashed its 2025 price target for ETH from $10,000 to $4,000—a massive 60% downgrade. Geoffrey Kendrick, the bank’s Global Head of Digital Assets Research, stated:”

Ethereum Accumulation by Large Holders. Source: X/Quinten Francois – Techtoken

However, on-chain data suggests a different narrative. Analyst Quinten Francois pointed out that whale investors are actually accumulating ETH aggressively—a sign that institutional investors still see Ethereum as a long-term winner.

Standard Chartered Bank cuts $ETH year-end price target by 60% from $10,000 to $4,000

Meanwhile large holders are buying aggressively

They’re playing you pic.twitter.com/0OOFqNlGej

— Quinten | 048.eth (@QuintenFrancois) March 17, 2025

This trend of whale accumulation is not unique to Ethereum. In the broader crypto market, massive whale moves have been observed, such as the Bitcoin short on Hyperliquid triggering a $420M battle. These strategic moves by large investors often indicate a shift in market sentiment before retail investors catch on.

What’s Next for Ethereum?

Ethereum’s future largely depends on its continued adoption and institutional support. While ETH is currently struggling, its technological advancements, Layer 2 expansion, and growing investor trust indicate long-term bullish potential.

As seen with MicroStrategy’s recent purchase of 130 more Bitcoins in a $10.8M deal (read here), institutional investors are increasingly doubling down on crypto assets despite market downturns.

Additionally, the crypto industry is constantly evolving, with new developments and challenges emerging, such as the recent meme coin exploit on BNB Chain, which showcases the risks of investing in emerging blockchain projects.

Whether Ethereum follows the footsteps of tech giants like Amazon and Microsoft or struggles under market pressure remains to be seen. But if history is any indication, patience could pay off for those betting on ETH’s future.