- Institutions are increasingly leveraging the network for institutional treasury flows and on-chain dollars, the analyst of Bitwise reveals.
- At the beginning of 2024, Ethereum core developer Eric Conner advised that the network’s mainnet in the long term will not serve as the platform.
The world’s largest crypto index fund manager, Bitwise, reveals that Ethereum now manages more institutional stablecoin flows than retail trades. Ethereum is now not only for non-fungible tokens and decentralized finance degens anymore.
Bitwise Europe released a new analysis in which it mentions that the base layer of the network is silently changing into a heavyweight settlement system for institutional money, and retail activity shifts away.
The data shows that Ethereum is transforming from a retail toll road to a shipment terminal for institutional-grade use cases as stablecoin transactions now make up the major part of on-chain activity.
Having over $127 billion in stablecoins flowing on the Ethereum blockchain, the trend indicates institutions are growingly leveraging the network for institutional treasury flows and on-chain dollars, the analyst of Bitwise reveals.
At the same time, the DeFi frenzy and NFT mania that once distinguished Ethereum have mainly migrated to layer-2 solutions. The platform also mentions that NFT activity surged mainly in the period of the 2021-2022 cycle, but since then, it has fallen drastically.
Ethereum is not scaling for smaller protocols
This indicates both market cooling and migration to L2s, which now anchor new NFT launches. The mainnet of Ethereum now mainly manages core infrastructure functions: ETH transfers, regulated tokenized assets, and the basic systems backing rollups and cross-chain bridges.
It seems that the transition is intentional. Having updates such as Pectra so far live, and PeerDAS/Fusaka will come in the near future. Ethereum is now not scaling for smaller protocols, as per the analysts.
They also added that the network is now targeting billions of layer-2 transactions, tokenized treasuries, and institutional settlement flows. The transition of the mainnet role of Ethereum has been predicted by its developers for some time.
At the beginning of 2024, Ethereum core developer Eric Conner advised that the network’s mainnet in the long term will not serve as the platform where daily users would want to transact tokens.
Highlighted Crypto News Today:
David Sacks and World Leaders Signal New Era of Bitcoin Adoption
