Let’s be trustworthy: Ethereum’s not having a very good time. A part of it, as I wrote yesterday, is as a result of general lack of momentum for altcoins. There’s additionally only a lack of optimistic sentiment — which is not like what we’re seeing for bitcoin (even when it hovers beneath $100,000).
In my dialog with Amberdata’s Greg Magadini, one half that was omitted of yesterday’s version have been his ideas on ETH.
“The drag on ETH, in my mind, is because the value proposition of EIP-1559 creating a supply burn was made invalidated, or was invalidated once everyone started building their L2s and app chains and having all the transactions process off Ethereum and settle back to Ethereum. So then you flip from a deflationary asset to an inflationary asset. That’s a fundamental reason for ETH going down,” he defined.
In different phrases, ETH’s incapability to regain momentum isn’t immediately tied to the remainder of the market proper now — particularly not the memecoin craze.
Okay so this wasn’t my most optimistic intro, however I really wished to take extra of a optimistic have a look at Ethereum proper now due to a Galaxy report from Vice President of Analysis Christine Kim.
The report is targeted on what’s being constructed on Ethereum and is a pleasant refresher — or inside look — to see how tasks are utilizing it.
Kim famous that over 50 non-crypto corporations have constructed both on Ethereum or an Ethereum L2. That’s no small quantity, particularly whenever you dig in and discover that about 20 of them are monetary establishments with 10 of these being banks.
The most important use case, which ought to come as no shock to loyal Empire readers, is real-world property. That’s the place you will have the monetary establishments constructing and experimenting with tokenized property — reminiscent of cash market funds (suppose BlackRock or Franklin Templeton) or authorities bonds.
As seen beneath, Ethereum greater than doubles the variety of RWAs issued by Ethereum L2 rollup ZKSync.
Now I do know that RWAs aren’t the sexiest use case for crypto — and I get it — however I believe we are able to all agree that they present a number of the promise of crypto for non-crypto natives (as long as we maintain them away from the memecoins).
However, okay, let’s transfer on to a different use case Galaxy discovered: gaming on Ethereum L2s.
NFTs haven’t made a comeback, which signifies that a number of the corporations that attempted to get some crypto publicity via them stopped issuing them years in the past. Honest sufficient. However Galaxy discovered that these days, there’s a use case for NFTs for some non-crypto native corporations and that’s gaming.
“What is most notable about the ongoing investment and development of NFTs by non-crypto-native companies like Atari, Lamborghini, and Lotte’s Caliverse is that they are being developed in the context of a larger on-chain gaming application,” Kim wrote.
“This highlights how the scalability gains from L2s are helping to support crypto-native use cases that require frequent on-chain interactions like gaming among major retail brands and corporations,” she continued.
There are nonetheless loads of questions and issues about Ethereum and the place it goes from right here, and that’s one thing I’m positive we’ll be protecting once more quickly. However Galaxy’s report reveals that we’re nonetheless seeing loads of constructing occurring, and it’s attracted of us outdoors of crypto. And that, I believe, is a small optimistic.
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