Stablecoins, RWA, and DeFi: The Three Catalysts Driving Ethereum's 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 and explore the underlying logic.

1. The data shows that the trend change critical point is approaching.

The market value of stablecoins has reached a historical high of $258.3 billion. The U.S. stablecoin bill is advancing, and the Hong Kong stablecoin regulations will take effect on August 1. The U.S. Treasury Secretary predicts that if the bill is passed, the market value of stablecoins could exceed $2 trillion in the coming years.

Asset tokenization ( RWA ) market has grown from $5.2 billion in 2023 to the current $24.3 billion, an increase of 460%. It is predicted that by 2030-2034, 10%-30% of global assets may be tokenized, with a scale potentially reaching $40-120 trillion.

Mainstream institutions are actively laying out RWA business:

• A large asset management company has launched a blockchain-based tokenized dollar-linked fund, with 95% of the funds deployed on Ethereum.

• A tokenization company collaborates with multiple institutions to issue tokenized products, with 80% deployed on Ethereum.

• A certain asset management company launched a tokenized fund, with part of it deployed on Ethereum.

These institutions adopting the wave marks the deployment of years of infrastructure construction towards production scale.

2. Rethinking RWA

RWA refers to the digitization of real-world assets through blockchain technology and mapping them as tokens or assets on the blockchain. It has advantages such as programmability, settlement efficiency, enhanced liquidity, and global accessibility.

Currently, RWA tokenization mainly involves the following areas:

1. Private Lending: The largest scale, reaching 14.3 billion USD, accounting for 58.8%.

2. Government Bonds: A scale of $7.4 billion, accounting for 30%. Mainstream financial institutions are exploring on-chain derivatives based on this.

3. Stocks: Multiple exchanges and fintech companies are accelerating the advancement of stock tokenization.

4. Product: Primarily gold.

5. Private Equity: Actively exploring, expected to solve liquidity issues.

3. stablecoin-RWA-DeFi ecosystem integration

Stablecoins are an important foundation for the integration of traditional finance onto the blockchain. The rapid development of RWA benefits from institutions exploring compliant integration methods. Once a large number of assets are on-chain, DeFi will play a role in driving a new round of ecological prosperity.

RWA and DeFi integration case:

1. A certain asset tokenization company connects to the DeFi system through sTokens, and its tokenized products have been integrated with multiple DeFi protocols.

2. A certain protocol's stablecoin achieves a stable minimum return by holding a fund from a certain asset management company, providing a foundation for DeFi derivatives.

Four, Ethereum becomes the mainstream choice for institutions

Currently, Ethereum is the main public blockchain for institutions to tokenize assets, accounting for 75.88%. Reasons institutions choose Ethereum:

1. The highest security and stability.

2. The most mature DeFi ecosystem and liquidity.

3. Highly decentralized and global business reach.

A certain Ethereum-related organization believes that ETH is a brand new category of asset and will become the foundation of the new financial system. ETH has multiple functions and is difficult to value using traditional methods; it should be assessed from the perspective of strategic value storage and utility scarcity.

Drivers of Ethereum's repricing:

1. Institutional demand surges
2. The demand for native crypto yields accelerates
3. Strategic accumulation of Ether
4. ETH becomes an institutional reserve asset

Although ETH is not the only choice for institutions, it is the optimal solution at this stage of large-scale asset tokenization. A trend is forming where ETH is being reassessed based on comprehensive data, case studies, and underlying logic.