A version of this article appeared in our The decentralized Newsletter on August 26. Register here.
Ethereum rises high.
Not only did he win a new summit of $ 4,946 on Sunday, but the growing embrace of Wall Street’s digital assets such as Stablecoins should generate the price to new heights.
Ethereum reached a record for the last time in November 2021.
Since then, the amount of stablescoins on the blockchain has increased by $ 74% to $ 143 billion, and real assets, tokenized versions of traditional financial assets such as the US Treasury bonds, are not more in a market of $ 7.6 billion.
This is a sign that the Ethereum Defi ecosystem matures and investors take note.
“The stablecoins are the” chatgpt “of the crypto,” said Tom Lee, president of the company of Ethereum Treasury Bitmine, said previously DL News. “And Ethereum is the backbone. He is legally recognized and has no stop time. ”
It is in this backdrop that Ethereum Bulls celebrated the new record this weekend.
While Jackson Hole’s remarks of the Fed chair, Jerome Powell, triggered the break of all time, the Ethereum cash companies led the major part of the anterior rally by encompassing the ether at an unprecedented rate.
The growth of stablecoins and active active people on Ethereum is part of a broader trend. Over time, less value on Ethereum comes from speculative assets such as DAO toys or the same, and more comes from traditional assets.
The activity on more emerging blockchains, like Solana, is always dominated by speculation on the same. They also host a much smaller number of stablecoins, which could be among the reasons why they have not received the same institutional interest.
Of course, major technical improvements – such as Ethereum going from proof of work to proof of participation – occurred in the interval. But these have not changed the main proposal for the blockchain value: become a universal hub for finance.
Admittedly, the favorable cryptographic regulatory environment under President Donald Trump also helped considerably.
In 2021, the regulation of the President of the SEC, Gary Gensler, by the position of application of the law, had Wall Street, keeping his distance, lest it be taken in the cross -fires.
The big question is therefore now: will the trend continue?
If you believe the analysts, the answer is a resounding yes.
The institutional branch of Coinbase predicts that the stablecoins will be swallowed in a market of $ 1.2 billion by 2028, while Matt Hougan, director of investments in Bitwise, sees the asset market pointed in dollars reaching 2.5 billions of dollars in “nothing”.
As for the active of the real world, the opportunity could be much greater.
