The triple driving forces of stablecoins, RWA, and Decentralized Finance will drive the reevaluation of ETH value

Recently, the cryptocurrency market has performed brilliantly, prompting investors to think about future growth points. This article will systematically analyze the development trends of stablecoins, RWA( physical assets), and Decentralized Finance from a foundational logic and long-term perspective, as well as their potential impact on the re-evaluation of ETH value.

1. Data Insights

The market value of stablecoins has reached a historical high of $258.3 billion, and the related bills in the United States and Hong Kong are progressing smoothly. The U.S. Treasury Secretary expects the market value of stablecoins to potentially exceed $2 trillion in the coming years.

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

Traditional financial institutions such as BlackRock are actively laying out their blockchain asset business:

• BlackRock BUIDL Fund AUM reaches $2.86 billion, with 95% deployed on Ethereum.
• The tokenized products issued by Securitize have a market value of $3.7 billion, with 80% deployed on ETH.
• Franklin Templeton BENJI Fund AUM is $743 million, with 10% deployed on ETH.

2. RWA Re-examination

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

1. Programmability: Achieve automated management through smart contracts
2. Settlement Efficiency: Achieve instant peer-to-peer settlement
3. Liquidity Enhancement: Standardize and Split Low Liquidity Assets
4. Global Accessibility: Breaking Geographic Barriers

The main tokenized assets currently include:

• Private Credit: $14.3 billion, accounting for 58.8% of total RWA size
• Treasury Bonds: $7.4 billion, accounting for 30%
• Stocks: Kraken and other exchanges have launched tokenized stocks.
• Gold: accounts for nearly 100% of commodity tokenization
• Private Equity: Actively Exploring

3. Stablecoin-RWA-DeFi Ecological Integration

Stablecoins are the foundation of traditional finance integrating into blockchain. The rapid development of RWA is attributed to institutional exploration of compliant integration methods. After a large number of assets are on-chain, Decentralized Finance will play an important role in achieving efficiency and automation.

RWA and DeFi integration cases:

1. Securitize connects DeFi through sTokens: BUIDL connects to the Euler lending protocol, ACRED connects to the Morpho protocol.

2. Ethena's USDtb fusion BUIDL achieves a stable income floor.

4. ETH Becomes the Mainstream Choice for Institutions

Currently, the market value of tokenized assets on the ETH chain is 7.5 billion USD, accounting for 58.41%. The main reasons institutions choose ETH are:

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

Etherealize believes that ETH is digital oil, providing power, guarantees, and reserves for the new financial system. The process of repricing ETH is accelerating:

1. Institutional demand surges
2. The demand for native crypto yield accelerates
3. Strategic accumulation of ETH
4. ETH as institutional fund asset

In summary, although ETH is not the only long-term choice for institutions, it is currently the optimal solution for large-scale asset on-chain. Combining data, cases, and underlying logic, the trend of ETH value reassessment is becoming increasingly evident.