Compass Investments

– In the May 9 edition of X, Ted Pillows shared a number of forward-looking considerations regarding the bullish trend for Ethereum. The angel investor and influential crypto expert stated five factors that promise ETH holders 600% returns by 2025.

First of all, Pillows suggested that Ethereum is likely to achieve the highest level of institutional acceptance among altcoins. Against the backdrop of pro-cryptocurrency policies in the U.S. and the growing prospect of digital asset regulations, institutional players are likely to start expanding their crypto portfolios beyond bitcoin.

As the experience of spot exchange-traded funds (ETFs) shows, Ethereum leads the way among alternative cryptocurrencies to include in a portfolio, given its status as the second largest cryptocurrency with a market share of 7.24% and widespread use of smart contracts. In particular, Ted Pillows emphasizes Ethereum’s dominant role in smart contract programming as another reason for investors’ optimistic expectations.

According to DefiLlama, the Ethereum blockchain currently controls 80.17% of RWAs, 51.01% of traded stablecoins and 53.29% of the total blockchain value (TVL) in DeFi, indicating significant potential for network expansion and price appreciation during the bull market.

Another likely market trigger highlighted by Ted Pillows is the possible approval of an Ethereum-stacked-ETF. The deadlines for the SEC’s decision on the proposed steaking option are the end of May and the end of August. However, Bloomberg analyst James Seyfarth speculates that the Commission may postpone the decision until October, as it did with ETH options trading.

The introduction of steaking will likely trigger an influx of funds into Ethereum ETFs, providing investors with an additional income opportunity. Staking will allow ETF owners to block ETH on the Ethereum network to act as a validator for a certain period of time and receive commissions.

Among other potential bullish signals, Ted Pillows also points to the high ETH burn rate following the launch of the Pectra network upgrade on May 7. A high burn rate indicates growing scarcity, which is always favorable for a rising market price.

Finally, Ted Pillows points out the increasing potential for risk assets to rise in the second half of 2025, as the US Federal Reserve is expected to lower interest rates and start quantitative easing, which will encourage investment in volatile assets such as cryptocurrencies.