Bernstein: CEX will be the biggest beneficiary of ETH pump, the alt season has begun.

On August 11, Bernstein analysts stated that with the rise of ETH and the arrival of alt season, CEX will be the biggest beneficiary. Analysts led by Gautam Chhugani pointed out in a report to clients on Monday that since the sensational IPO of stablecoin issuer Circle on June 5, ETH has risen by 80%, and investors' interest in the Ethereum ecosystem has grown significantly upon realizing that most stablecoins are issued on the Ethereum network. Chhugani said, "In cryptocurrency terms, this market structure is referred to as 'alt season rise,' where the rebound strength of digital assets outside Bitcoin is stronger than that of Bitcoin. We believe the altcoin rebound has already begun (as evidenced by ETH's recent outstanding performance), and CEX will be the biggest beneficiary, as it has listed over 250 tokens and has integrated long-tail tokens on the Base chain into the CEX App." The analysts noted that the Base chain processes over 9 million transactions daily from various applications, with Gas fees settled in ETH, allowing CEX to earn $75 million annually from sequencer fees. They stated that CEX also earns brokerage fees by integrating Base chain tokens on its trading platform and launching the Base App for cryptocurrency trading. The analysts added that CEX's staking activities (mainly for ETH) account for 10% of the company's total revenue, so as asset prices rise, this revenue should also increase. They pointed out that CEX also holds a massive ETH reserve of 136,782 ETH (worth $570 million).

ETH-0.23%
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