According to foreign media reports, James Wo, founder of DFG, a crypto investment firm managing over $1 billion in assets, recently stated at the Proof of Talk conference in Paris that he remains optimistic about Bitcoin's performance in the coming cycles, but is more cautious about Ethereum's upside potential.
Bitcoin has stronger institutional consensus.
In an interview with CoinDesk, Wo stated that Bitcoin has already achieved a broader consensus within the crypto industry and traditional finance. According to him, the market is gradually viewing Bitcoin as a safe-haven asset and an independent asset class, a position Ethereum has not yet reached.
He also refuted market analyst Tom Lee's assessment of a significant rise in ETH, arguing that Ethereum lacks institutional recognition similar to Bitcoin, making it difficult to replicate Bitcoin's pricing logic.
Layer 2 offloading value of the mainnet
Wo believes that the valuation of Ethereum tokens still depends on the mainnet's ability to absorb on-chain activity and transaction fees. However, Layer 2 networks have been diverting transaction volume in recent years and absorbing fee value in their respective ecosystems, which weakens ETH's direct capture of overall activity.
Based on this assessment, he believes that Ethereum tokens may not be able to obtain strong enough price support from ecosystem expansion, and that ETH may not even be able to break its all-time high.
Bitcoin targets $125,000
Reports indicate that Wo began paying attention to Bitcoin during the 2014 bear market, subsequently entering the market with an initial investment of $20 million provided by her family, and allocating Bitcoin during the low point of late 2014 to 2015. DFG later expanded into ecosystems such as Solana, Polkadot, and Near, and participated in early investments in Circle.
According to reports, DFG currently manages over 100 portfolio entities with total assets under management exceeding $1 billion. While Wo holds reservations about ETH, he believes Bitcoin still has a chance to reach new all-time highs in the coming years, potentially in 2027 or 2028, with a peak of approximately $125,000.
Additional information:The report also mentioned that Ethereum co-founder Vitalik Buterin sparked another community discussion earlier this year, arguing that as the network becomes faster and cheaper, the necessity of Layer 2 as the primary scaling path may decline, and the debate surrounding mainnet value capture continues.
