Chainfeeds Guide:
Market trust and confidence in Ethereum are continuously increasing.
Article Source:
https://www.techflowpost.com/article/detail_27116.html
Article Author:
TechFlow
Perspective:
Mike Nadeau: The concept of stablecoins is actually quite easy to understand. Anyone familiar with the crypto field knows the potential of stablecoins, and their influence is gradually entering the public eye. I am currently writing a report analyzing the potential impact of this bill and its significance for fintech companies. We have already seen that almost all fintech companies will soon launch their own stablecoins, and the banking industry may also take the lead in launching their own. This will have a profound impact on e-commerce payments and global financial inclusivity. Bitcoin was originally considered a tool to achieve these goals, but I believe stablecoins are the best solution for financial inclusivity. Last year, I spent five weeks in Buenos Aires, Argentina. In the United States, people may not fully understand the necessity of stablecoins due to low inflation rates. However, in Argentina, stablecoins have become an indispensable part of daily life. I anticipate that Stripe may also launch its own stablecoin. Through this bill, I believe another area worth paying attention to is salary payments. How can we ensure everyone has a crypto wallet and starts using stablecoins? I think we need some mandatory mechanism to achieve this. Salary payments might be such a mechanism. If we can speed up the payment process and move away from the traditional weekly or bi-weekly payment model, I believe this would be a significant breakthrough. We can observe changes in this area over the next one to two years. But we must make stablecoins accessible to everyone and circulate them on the blockchain. I believe this will significantly boost economic activity on the Ethereum chain. Currently, 51% of stablecoins in the crypto market are on the Ethereum mainnet (L1), with 4% to 5% on Layer 2 networks. So overall, about 55% of stablecoins are in the Ethereum ecosystem. This is a critical moment, and we even see major retailers like Walmart discussing launching stablecoins. Such trends indicate the massive development potential of stablecoins, and the Genius Bill could become a catalyst for this trend. Looking back at the previous cycle in 2021, when a stablecoin-related bill passed OCC review, Ethereum subsequently entered a bull market. Therefore, the Genius Bill may again be a key factor in driving the market. The asset scale on Ethereum has now reached $7.5 billion, and this figure is expected to experience explosive growth in the future. In my view, stablecoins and potentially stocks that may be on-chain at some point will be the main drivers of this growth. It's worth noting that companies like Robinhood have already started building in the Ethereum ecosystem. Putting assets on-chain is the crucial first step in driving this trend, and enabling liquidity for these assets is the more important next step. If we can successfully put more real-world assets on-chain, this will further promote active lending and decentralized finance (DeFi). As more assets and collateral enter DeFi, users will be able to optimize capital efficiency using these on-chain assets, thereby driving the prosperity of the entire ecosystem. I believe there is a feedback loop phenomenon here: as more assets go on-chain, more funds flow into DeFi, more assets are used as collateral, which will change gas fees and further impact Ethereum's burning mechanism. The burning mechanism reduces Ethereum's supply by burning part of the transaction fees, thereby optimizing the entire ecosystem. Ultimately, this cycle will drive the rapid development of the entire ecosystem. The crypto market has strong reflexivity, and sometimes the key factor driving market development is actually the price of ETH itself. A rise in ETH price will attract more assets on-chain, more users into the on-chain ecosystem, and other fundamental factors will improve accordingly. This phenomenon is exactly the opposite of how traditional finance operates, where fundamentals typically come first, and then assets move. This is the trend I'm looking forward to, especially after observing ETH's price movement over the past month and its positive impact on fundamentals.
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