A cryptocurrency market analyst from Bloomberg Intelligence has expressed a firm belief that Ethereum (ETH) is poised to emerge victorious in the forthcoming “stablecoin wars.”
Jamie Coutts conveyed on the social media platform X that Ethereum, along with its expansive ecosystem encompassing layer-2 projects such as Optimism (OP), Base, and Arbitrum (ARB), exhibits superior performance across numerous network-adoption metrics compared to alternative networks.
Coutts duly acknowledges that the cost of transferring the leading stablecoin by market capitalization, Tether (USDT), is notably higher on the Ethereum network in comparison to other networks, particularly on layer-2 solutions. Coutts predicts that Ethereum’s scaling roadmap, which is primarily centered around rollups, will considerably reduce the cost of layer-2 transactions (by a factor of 10-100X) in the upcoming year, with the implementation of EIP-4844 (proto-danksharding).
The analyst from Bloomberg also concedes the potential future launch of a layer-2 network by the prominent payment giant PayPal. Notably, PayPal introduced a new stablecoin named PYUSD earlier this month.
Coutts emphasizes the burgeoning nature of stablecoin adoption behind the scenes and posits that, due to factors like integration with merchant companies, innovative product offerings, and scaling solutions, the number of stablecoin users might even surpass the user base of Bitcoin (BTC) within the next three to five years.
He suggests that a more pertinent adoption metric than cyclically-based trading volumes is the count of addresses possessing stablecoin balances exceeding $1. This metric has recently achieved an all-time high of approximately 17.4 million. Since the year 2021, these addresses have experienced a sevenfold increase, surpassing the growth rates observed in both Bitcoin and Ethereum.
Read Also: Arkham Intelligence Uncovers Robinhood as Third Largest Bitcoin Holder, Owning $3,066,222,950 BTC
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
- Advertisement -
Comments are closed.