Stablecoin, RWA, and Decentralized Finance: The Three Catalysts Driving the Revaluation of ETH

Recently, as the performance of cryptocurrencies has been good, investors have raised some thought-provoking questions, such as "Where will the market increment be after the stablecoin bill is passed?" "Why do certain tokens surge when they ride on the Ethereum hype?" "What is the relationship between RWA opportunities and Ethereum?" "Why do you still have confidence in ETH despite short-term price fluctuations?" This article will systematically analyze these questions from a foundational logic and long-term perspective.

The rise of Ethereum is not driven by a few institutions, but rather a common choice among mainstream institutions as they reshape their strategies; the critical point of trend change is about to arrive.

1. Data Overview

The total market value of stablecoins reached a historic high of $258.3 billion. The U.S. stablecoin bill is progressing, and the Hong Kong stablecoin regulations are about to take effect. The U.S. Treasury Secretary expects the market value of stablecoins to grow more than tenfold in the coming years. The market value of RWA increased from $5.2 billion last year to $24.3 billion, a growth of 460%.

Currently, the global financial market capitalization is 400 trillion, the cryptocurrency market is 3.3 trillion, stablecoins are 0.25 trillion, and RWA is 0.024 trillion. It is expected that by 2030-2034, 10-30% of global assets may be tokenized, with a scale of 40-120 trillion, and the market value of RWA is expected to expand by more than 1000 times.

Traditional financial institutions are actively laying out plans:

• 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 USD, 80% deployed on Ethereum.

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

More institutions are advancing asset on-chain and tokenization business, currently adopting Waves as a representative of years of infrastructure development moving towards production-scale deployment.

2. Reunderstanding RWA

RWA(Real-World Assets) refers to the digitization of real-world assets through blockchain technology, mapping them as on-chain tokens. Broadly includes the on-chaining and tokenization of any asset, enabling the rights, circulation, and settlement of underlying assets to be completed via blockchain.

Tokenization advantages:

1. Programmability: Achieve asset management automation through smart contracts.

2. Settlement Revolution: Achieving peer-to-peer instant settlement, improving efficiency and reducing risk.

3. Liquidity Revolution: Standardizing the division of low liquidity assets to enhance liquidity.

4. Global Accessibility: Breaking down geographical barriers and expanding the investor base.

Main tokenization targets:

1. Private Credit: Largest RWA sector, with a scale of 14.3 billion USD.

2. Government Bonds: Traditional institutions' entry point, scale of 7.4 billion USD.

3. Stocks: Multiple exchanges and brokerages are accelerating their layout.

4. Products: Mainly gold.

5. Private equity: Actively exploring.

3. Stablecoin-RWA-Decentralized Finance Ecosystem Integration

Stablecoins are the foundation of traditional finance integrated onto the blockchain, making currency programmable and decentralized.

The rapid development of RWA is attributed to institutional exploration of compliant integration methods. After the passage of the stablecoin and market structure bills, a large number of assets will be rapidly tokenized on-chain.

Decentralized Finance will play a role in the integration of new on-chain assets with DeFi protocols, promoting efficiency, automation, and compliance.

RWA and DeFi integration case:

1. Securitize connects DeFi through sTokens:

• BlackRock BUIDL and Euler Protocol Integration
• Apollo ACRED integrated with Morpho protocol

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

Traditional financial institutions are starting from stablecoins to explore the development of on-chain derivatives and the compliance integration of Decentralized Finance.

4. ETH Becomes a Mainstream Choice for Institutions

ETH is currently the main public chain for institutional asset tokenization, accounting for 58.41%. The reasons institutions choose ETH:

1. Highest security and stability

2. The most mature Decentralized Finance ecosystem and liquidity

3. Highly decentralized and global business reach capability

Etherealize believes that ETH is the foundational asset of the new financial system, with multiple functions: computing fuel, value storage, settlement collateral, deflationary asset, etc.

The ETH repricing process is accelerating:

1. Institutional demand surges

2. The demand for native crypto yields accelerates

3. Strategic accumulation of ETH

4. ETH becomes an institutional funding asset

In summary, ETH is not the only choice for institutions to enter the blockchain, but it is currently the optimal solution for large-scale asset tokenization. Combining data, examples, and underlying logic, a trend of re-evaluating ETH is beginning to take shape.