BlackRock Invests $100M in Ethereum Amid 11% Price Drop, ETH at $3,170

BlackRock, the global investment management corporation, has made a significant move by depositing $100 million on Ethereum, signaling strong confidence in the blockchain's capabilities. This decision underscores Ethereum's status as a robust, secure, and decentralized platform, suitable for high-value institutional use. Despite Ethereum's high Layer 1 (L1) fees, BlackRock's investment highlights its reliability and the advantages of its Layer 2 (L2) solutions, which offer sub cent transactions and reduced fees, leading to an approximately 80x reduction in fees. Ethereum's L2 advancements are seen as a game-changer in the blockchain space. The investment has sparked discussions on Ethereum's valuation, with some commentators suggesting that Ethereum's price under $10k is undervalued, especially as the current price stands at $3,170. The market's reaction to BlackRock's investment has been mixed, with Ethereum's price experiencing a drop of about 11% on the day of the announcement. Discussions about an Ethereum ETF have also been highlighted in the context of BlackRock's investment.