- Ethereum’s total value locked (TVL) is at $37.75 billion, with potential to reclaim all-time highs.
- AminoChain forecasts Ether could underpin the global financial system, using ETH for transactions.
- The ecosystem may feature ETH-derived stablecoins pegged to the USD, unlike traditional USD-backed stablecoins.
Ethereum is at the cusp of a sea change, with its total value locked at an impressive $37.75 billion. According to Leon Waidmann, Head of Research at Onchain HQ, that figure is just the beginning. With Ethereum furthering the cause of Layer 2 adoption and with the continuously expanding Web3 ecosystem, Waidmann thinks that TVL is close to reclaiming its all-time highs anytime soon.
He looks at Ethereum not just as a blockchain but as an inseparable part of the Web3 economy that is going to fuel more innovation and decentralization. Meanwhile, another newly launched Ether layer 2 solution, AminoChain, took to X with a pretty bold prediction: the whole global financial system could one day run on Ethereum.
According to this vision, there could be three main types of assets that evoke the base layer of this future system. First is Ethereum’s native currency. It is positioned to be, as the fundamental medium of transactions and smart contracts, the largest market-cap asset among the Onchain primitives and one of the two fundamental stores of value along with the U.S. dollar in this new financial system.
AminoChain focuses on important ETH-derived stablecoins that would use algorithmic approaches encoded in self-sustaining protocols, keep a peg to the USD, and use ETH as collateral. These are the types of stablecoin tokens that will change how digital assets interact with traditional finance.
These contrast with USD-backed stablecoins, which would rely on actual USD reserves for their backing, making them Ether’s largest tokenized external assets.
The Role of Ethereum (ETH) as a Store of Value
The ecosystem will also involve minor Onchain primitives that are native assets on Ethereum basically deriving their value from decentralized applications or collectibles. Prominent examples include tokens like Uniswap’s UNI, Aave’s GHO, and iconic CryptoPunk NFTs.
There are minor tokenized external assets from somewhere else that have been tokenized and may involve non-USD national currencies, Bitcoin, precious metals, and real estate. Whereas Ethereum is still under development, its potential to reshape the face of global finance seems boundless.
The stage for the role of Ethereum in financial futures is set with advanced forecasts from Waidmann and AminoChain, which suggests leading positions in innovation and new paradigms in asset valuation and exchange. The journey has just begun, and the influence of Ethereum might soon be trickling into various areas with its bright promise of a decentralized financial future.
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