Stablecoin, RWA, and DeFi: The Three Catalysts Driving the Re-evaluation of ETH Value

Recently, the performance of cryptocurrency stocks has been good, prompting investors to think about several key issues: Where will the market increment be after the stablecoin bill is passed? Why can certain tokens surge due to the Ethereum hotspot? What is the relationship between RWA opportunities and Ethereum? Why is ETH still favored despite short-term price fluctuations? This article will systematically analyze these issues from a long-term perspective.

The rise of Ethereum is not driven by individual institutions, but rather a collective choice made by mainstream institutions as they undergo transformative arrangements; the critical point of trend change is approaching.

1. Data Interpretation

The total market value of stablecoins reached a historical high of 258.3 billion USD, and the US stablecoin bill is expected to complete legislation before August. The Hong Kong stablecoin regulations will take effect on August 1. The US Treasury Secretary predicts that if the bill is passed, the market value of stablecoins will exceed 2 trillion in the coming years. The market value of asset tokenization ( RWA ) increased from 5.2 billion to 24.3 billion USD, a growth of 460%.

Currently, the total market value of traditional finance exceeds 400 trillion, the crypto market is 3.3 trillion, stablecoins are 0.25 trillion, and RWA is 0.024 trillion. It is estimated that from 2030 to 2034, 10%-30% of global assets may be tokenized, with a scale of 40-120 trillion, and the market value of RWA could expand by over 1000 times.

Mainstream institutions are actively laying out RWA business:

BlackRock BUIDL Fund: A blockchain-based tokenized dollar pegged fund, AUM $2.86 billion, 95% deployed on Ethereum.

Securitize: Collaborating with multiple institutions to issue tokenized products, with a total market value of $3.7 billion, 80% deployed on ETH.

Franklin Templeton BENJI Fund: tokenized fund, AUM $743 million, 10% deployed on Ethereum.

2. Reassessing RWA

RWA refers to the digital representation of real-world assets mapped onto the blockchain as on-chain tokens. Its advantages include:

1. Programmability: Smart contracts drive automation in asset management

2. Settlement Revolution: Achieving Instant Settlement, Reducing Risk

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

4. Global Accessibility: Breaking Geographical Barriers

Main tokenization areas:

1. Private Lending: Scale of $14.3 billion, accounting for 58.8%

2. Government Bonds: Scale of 7.4 billion USD, accounting for 30%

3. Stocks: The exchange is accelerating its progress.

4. Product: Mainly gold

5. Private Equity: Actively Exploring

3. Stablecoin-RWA-DeFi Integration

Stablecoins are the foundation of traditional finance integrating onto the blockchain. The rapid development of RWA is attributed to institutional compliance exploration. In the future, after a large number of assets are on-chain, Decentralized Finance will play a role in achieving efficiency, automation, and compliance.

RWA and Decentralized Finance integration case:

1. Securitize connects DeFi through sTokens

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

4. ETH is the mainstream choice for institutions

Currently, the market value of RWA on ETH is 7.5 billion USD, accounting for 58.41%. Reasons institutions choose ETH:

1. Highest Security

2. Mature Decentralized Finance ecosystem and liquidity

3. Highly decentralized and globally accessible

Etherealize believes that ETH is a new type of asset: the digital oil powering the new financial system. ETH has multiple functions, making it difficult to value simply, but its strategic value is immense.

The ETH repricing process is underway:

1. Institutional demand surges

2. Native crypto yield demand accelerates

3. Strategic accumulation of ETH

4. ETH has become an institutional reserve asset

In summary, ETH is the optimal solution for asset on-chain at present and is expected to be revalued in the future.