Stablecoin, RWA, and DeFi: Three Catalysts Driving ETH Value Reassessment

Recently, the performance of cryptocurrency stocks has been good, triggering investors to think about issues such as market increment after the stablecoin bill is passed, the surge of Ethereum-related concept stocks, RWA opportunities, and the relationship with Ethereum. This article will systematically sort out the relevant logic from a long-term perspective.

1. Data Showcases the Rapid Development of Stablecoins and RWAs

The total market value of stablecoins has reached a historic high of 258.3 billion USD. The US stablecoin bill is progressing, and the Hong Kong stablecoin regulations are about to take effect. The US Treasury Department predicts that the market value of stablecoins may grow more than tenfold in the coming years.

The RWA market has grown from $5.2 billion in 2023 to currently $24.3 billion, an increase of 460%. According to industry predictions, by 2030-2034, 10%-30% of global assets may be tokenized, with a scale potentially reaching $40-120 trillion.

2. Structural Advantages of RWA

RWA digitizes real-world assets through blockchain technology, offering the following advantages:

1. Programmability: Achieving automated asset management through smart contracts.

2. Settlement Revolution: Achieving Instant Settlement, Reducing Counterparty Risk

3. Liquidity Revolution: Improve the liquidity of low liquidity assets

4. Global Accessibility: Breaking geographical barriers to expand the investor base.

Currently, RWA mainly involves private credit, government bonds, stocks, commodities, private equity, and other fields.

3. The Integration of Stablecoins, RWA, and DeFi

Stablecoins are the foundation of traditional finance integrated onto the blockchain. RWA drives a large number of assets onto the blockchain. DeFi merges newly on-chain assets with mature protocols, achieving efficiency and automation.

Case of RWA and Decentralized Finance integration:

1. Securitize connects the DeFi system through sTokens.

2. Ethena's USDtb integration BUIDL achieves a stable yield floor

4. ETH Becomes a Mainstream Choice for Institutions

ETH is currently the main public chain for institutional asset tokenization, accounting for over 58%. The reasons institutions choose ETH:

1. Highest security

2. The DeFi ecosystem is the most mature, with the best liquidity.

3. High degree of decentralization, global business reach is wide

Etherealize believes that ETH is digital oil, providing power, collateral, and reserves for the new financial system. ETH is a multifunctional asset that is difficult to value using traditional methods.

The process of ETH repricing is happening:

1. Institutional demand surges

2. The demand for native crypto yield accelerates

3. Strategic accumulation of ETH

4. ETH as institutional fund assets

In summary, while ETH is not the only long-term choice for institutions, it is currently the optimal solution for large-scale asset tokenization. With the triple catalysts of stablecoin, RWA, and Decentralized Finance, the value of ETH is expected to be reassessed.