Ethereum‘s current strength is largely related to network performance and activity, which shows solid growth. Although mainstream blockchains are experiencing rapid growth in several key areas, there is one area that currently stands out: economic activity on networks.
Discrepancy between Ethereum’s actual activity and price
As the broader cryptocurrency landscape evolves, market experts and traders, Milk Road, revealed It shows that the Ethereum network is showing signs of solid strength. Compared to recent times price performancethe major networks tell slightly different stories.
Despite the fact that ETH’s market value sometimes fluctuates or lags behind riskier assets, the amount of economic activity settled on the blockchain continues to increase. This disparity highlights an important aspect of ETH’s current cycle: while ETH’s fundamentals are strengthening behind the scenes, market sentiment is not accurately reflecting it.
at the same time, ethereum network has been selected for actual implementation by increasing institutional capital. This type of chain is becoming more of a financial infrastructure than a speculative asset.
According to Milk Road, these participants focus on uptime, liquidity, payment certainty, and compliance, which quickly narrows the set of viable networks. On the other hand, as more activity occurs on-chain and transaction volumes and fee income increase, more economic weight will be placed on Ethereum’s base layer.
As seen in the past, ETH has had difficulty staying flat for long periods of time when demand is high. However, analysts expect the price of ETH to rise. Hiring rate increases.
Real assets are flooding the network
According to Tokenized real-world assets (RWA) are quickly emerging as one of Ethereum’s key growth drivers, according to a report by Leon Waidmann, head of research at the On-Chain Foundation. With real-world assets migrating to ETH, this development is rapidly bringing traditional financial activities on-chain.
This change is more than just a buzz, as institutional infrastructure, token issuance, and payment volumes are all increasing simultaneously, changing the status of ETH. According to the data, the market capitalization of stablecoins found on the network is approximately $190 billion. ETH options expand as a major chain of virtual currency finance.
Meanwhile, the total amount of tokenized funds has reached $6 billion to $7 billion and is still growing rapidly. The company’s tokenized products have reached over $4 billion and appear to continue to set new highs. Moreover, the value of the tokenized shares of ETH is around $400 million to $500 million, but this is just the beginning. Such a scenario suggests that the tokenization of real-world assets could form the basis of Ethereum’s next significant adoption phase.
Given the strong growth in these areas, Wideman said: Become the default settlement layer for real assets” Wideman’s argument is not based on a simple narrative, but on the fact that networks are already working at scale.
Featured image from Freepik, chart from Tradingview.com
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