Stablecoin, RWA and Decentralized Finance: The Three Catalysts Driving ETH Value Reevaluation

Recently, the performance of cryptocurrency stocks has been good, attracting investors' attention to issues such as stablecoin legislation, Ethereum hotspots, and RWA opportunities. This article will systematically analyze these issues from a long-term perspective, supplementing previous relevant reports.

The rise of ETH is not due to the purchases or promotions of individual institutions, but rather a collective choice of mainstream institutions as they adjust their strategies during this transformative period, with the critical point of trend change approaching.

1. Data Insights

The total market capitalization of stablecoins has reached a historic high of $258.3 billion. The US stablecoin bill is progressing, and the Hong Kong stablecoin regulations will take effect on August 1. The US Treasury Secretary predicts that if the bill passes, the market capitalization of stablecoins could grow to over $2 trillion in the coming years.

Asset tokenization ( RWA ) market has grown from 5.2 billion dollars in 2023 to currently 24.3 billion dollars, an increase of 460%. Industry forecasts suggest that by 2030-2034, 10%-30% of global assets may be tokenized, potentially reaching a scale of 40-120 trillion dollars, which is over 1000 times the current amount.

Mainstream institutions are actively laying out RWA business:

• BlackRock BUIDL Fund: Tokenized USD Pegged Fund, AUM 2.86 billion USD, 95% deployed on Ethereum.

• Securitize: Collaborated with multiple institutions to issue tokenized products, with a market capitalization of 3.7 billion USD, 80% on Ethereum.

• Franklin Templeton BENJI Fund: tokenized fund, AUM $743 million, 10% on ETH

2. Re-examining RWA

RWA refers to the digitization of real-world assets through blockchain technology and their mapping as tokens on the blockchain. Its structural advantages include:

1. Programmability: Achieving automated asset management through smart contracts

2. Settlement Revolution: Achieving instant peer-to-peer settlements and reducing risk

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

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

The main tokenized assets currently include:

• Private Lending: Largest scale, 14.3 billion USD
• Government bonds: 7.4 billion USD, the main entry point for traditional institutions
• Stocks: Accelerating realization
• Product: Mainly based on gold
• Private Equity: Actively Exploring

3. Stablecoin-RWA-DeFi Ecosystem

Stablecoins are an important foundation for the integration of traditional finance into the blockchain. The rapid development of RWA is attributed to institutions continuously exploring compliant integration methods. After a large number of assets are on-chain, DeFi will play a significant role in driving a new round of ecological prosperity.

RWA and DeFi integration case:

1. Securitize connects the Decentralized Finance system through sTokens.

2. Ethena's USDtb fusion BUIDL achieves a stable minimum yield.

Four, ETH Becomes the Mainstream Choice for Institutions

ETH is currently the main public chain for institutions to tokenize assets, accounting for 58.41%. The main reasons institutions choose ETH:

1. The highest security
2. The most mature Decentralized Finance ecosystem and liquidity
3. Highly decentralized and global business reach

Etherealize believes that ETH is a new type of asset: digital oil that powers, guarantees, and reserves the new financial system of the internet. The versatility of ETH makes it difficult to value, but it also gives it greater long-term potential.

Factors Accelerating the Repricing of ETH:

1. Institutions are adopting ETH infrastructure on a large scale.
2. The demand for native crypto yield has increased
3. Strategic accumulation of ETH
4. ETH becomes a reserve asset for institutional funds

In summary, while ETH is not the only choice for institutions, it is currently the best solution for large-scale asset tokenization. With the development of stablecoins, RWA, and the Decentralized Finance ecosystem, the trend of ETH being reassessed is becoming evident.