Stablecoin, RWA and Decentralized Finance: Three Key Factors Driving ETH Valuation Reassessment

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

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

1. Data Overview

The total market value of stablecoins reached a historic high of $258.3 billion. Both the US and Hong Kong stablecoin bills have made progress. The US Treasury Secretary predicts that the market value of stablecoins could grow more than tenfold in the coming years. The RWA market size has grown from $5.2 billion in 2023 to the current $24.3 billion, an increase of 460%.

The total market value of traditional finance exceeds 400 trillion, the total market value of the crypto market is 3.3 trillion, the total market value of stablecoins is 0.25 trillion, and the total market value of RWA is 0.024 trillion. It is expected that by 2030-2034, 10%-30% of global assets may be tokenized, reaching a scale of 40-120 trillion.

BlackRock and other institutions are actively laying out their blockchain business:

• BlackRock BUIDL Fund: AUM 2.86 billion USD, 95% deployed on ETH
• Securitize: Tokenized products have a market value of 3.7 billion USD, 80% deployed on Ethereum
• Franklin Templeton BENJI Fund: AUM $743 million, 10% deployed in ETH

2. Re-examining RWA

RWA refers to the digitization of real-world assets into tokens on the blockchain. Tokenization offers advantages such as programmability, instant settlement, enhanced liquidity, and global accessibility.

Main tokenized assets:

1. Private Credit: $14.3 billion, accounting for 58.8% of RWA
2. Government bonds: 7.4 billion USD, accounting for 30%
3. Stocks: Kraken, Bybit and others launched tokenized stocks
4. Product: Mainly gold tokenization
5. Private Equity: Actively Exploring

3. Stablecoin-RWA-DeFi Integration

Stablecoins are the foundation of on-chain finance. The rapid development of RWA benefits from institutional exploration of compliance integration. After a large number of assets are on-chain, DeFi will play a role in promoting a new round of ecological development.

Integration Case:

1. Securitize connects Decentralized Finance through sTokens
2. Ethena's USDe and BUIDL integration for stablecoin earnings

4. ETH Becomes the Mainstream Choice for Institutions

Tokenized assets on ETH account for 58.41%, with its L2 ZKsync Era accounting for 17.47%.

Reasons institutions choose ETH:

1. Highest Security
2. Mature Decentralized Finance ecosystem and liquidity
3. Highly decentralized, global business reach

Etherealize believes that ETH is the foundational asset of the new financial system, with multiple functions. The re-pricing process of ETH is accelerating:

1. Institutional demand surges
2. The demand for native crypto yield increases
3. Strategic accumulation of ETH
4. ETH has become a reserve asset for institutional funds.

ETH is currently the optimal solution for large-scale asset tokenization, and the trend of being reassessed is becoming increasingly evident.