Trend Research: The "Blockchain Revolution" in Progress, Ethereum Continues to Surge

Unique Title: “The Ongoing ‘Blockchain Revolution,’ Ethereum Continues to Rise”

Unique Supply: Trend Analysis

For the reason that market crash of 1011, your complete crypto market has been lackluster, with market makers and traders struggling heavy losses. Restoration of funds and sentiment will take time. Nevertheless, what the crypto market lacks the least is new volatility and alternatives. We stay optimistic in regards to the future as a result of the pattern of mainstream crypto property merging with conventional finance into new codecs has not modified. As an alternative, it has quickly constructed a moat in the course of the market downturn.

On December 3, U.S. SEC Chair Paul Atkins said in an interview with FOX on the NYSE: “Within the subsequent few years, your complete U.S. monetary market might migrate to the blockchain.”

Atkins said:

(1) The core benefit of tokenization is that if property exist on the blockchain, possession construction and asset attributes might be extremely clear. Presently, listed firms typically have no idea who their shareholders are particularly, the place they’re positioned, or the place their shares are.

(2) Tokenization additionally goals to obtain “T+0” settlement, changing the present “T+1” transaction settlement cycle. In precept, the on-chain supply versus cost (DVP) / receipt versus cost (RVP) mechanism can cut back market threat, improve transparency, and the time distinction between present clearing, settlement, and fund supply is without doubt one of the sources of systemic threat.

(3) Tokenization is seen as an inevitable pattern in monetary providers, with main banks and brokerages already transferring in the direction of tokenization. It might solely take the world lower than 10 years… maybe a number of years later it would develop into a actuality. We’re actively embracing new applied sciences to be sure that the US maintains its main place in cryptocurrency and different areas.

In actual fact, Wall Avenue and Washington have already constructed a deep capital community deeply integrating into crypto, forming a brand new narrative chain: U.S. political and financial elites → U.S. Treasury Bonds → Stablecoins / Crypto Custody Firms → Ethereum + RWA + L2

From this chart, you’ll be able to see the Trump household, conventional bond market makers, the Treasury Division, tech firms, and crypto firms intricately linked collectively, with the inexperienced oval line turning into the spine:

(1) Stablecoin (USD-backed property behind USDT, USDC, WLD, and many others.)

The majority of reserve property include Quick-Time period US Treasuries and financial institution deposits held by brokerages like Cantor.

(2) US Treasuries

Issued and managed by Treasury/Bessent, utilized by Palantir, Druckenmiller, Tiger Cubs, amongst others, as a low-risk fee base asset, additionally wanted by stablecoins/treasury firms for yield.

(3) RWA

From US Treasuries, mortgages, accounts receivable to housing finance, all tokenized by Ethereum L1/L2 protocols.

(4) ETH & ETH L2 Fairness

Ethereum serves as the primary chain for RWA, stablecoins, DeFi, AI-DeFi, whereas L2 fairness/token represents a declare on future transaction quantity and price money move.

This chain expresses:

USD Credit score → US Treasuries → Stablecoin Reserves → Numerous Crypto Treasuries/RWA Protocols → In the end selecting ETH/L2.

Taking a look at RWA’s TVL: In contrast to different public chains in a downtrend in 1011, ETH is the one one which rapidly recovered from the drop and rose, at present at 124 billion in TVL, accounting for 64.5% of the full crypto market cap.

The current Ethereum Fusaka improve didn’t trigger a lot of a market stir, however from the angle of community construction and financial mannequin evolution, it was a “milestone occasion.” Fusaka not solely expanded by EIPs like PeerDAS but additionally tried to handle the problem of inadequate L1 mainnet worth seize since L2 growth.

By means of EIP-7918, ETH launched a blob base price to set up a “dynamic base fee,” tying its flooring to the L1 execution layer base price, requiring that blobs pay a DA price at a unit worth of about 1/16 of the L1 base price; this implies Rollups can not occupy blob bandwidth virtually cost-free in the long run, with corresponding charges flowing again to ETH holders in a burn mechanism.

The Ethereum full improve is said to “burning” 3 times:

(1) London (single-tier): Solely burns the execution layer, ETH started experiencing structural burning due to L1 utilization.

(2) Dencun (dual-tier + unbiased blob market): Burns the execution layer + blob, L2 information written to blob additionally burns ETH, however the blob portion is nearly 0 in occasions of low demand.

(3) Fusaka (dual-tier + blob linked to L1): To make use of L2 (blob), one should pay a price of not less than a set ratio of the L1 base price and it is going to be burned, mapping L2 exercise to ETH burning extra stably.

Presently, the blob charges at 23:00 on 12.11 for 1 hour have reached 569.63 billion occasions the charges earlier than the Fusaka improve, burning 1527 ETH in a day. Blob charges have develop into the very best contributing half to the burning, up to 98%. As ETH L2 turns into extra energetic, this improve is anticipated to convey ETH again to deflation.

In the course of the 1011 drop, ETH’s futures leverage positions had been completely cleared, in the end reaching spot leverage positions. In the meantime, many lacked religion in ETH, inflicting many historic OGs to cut back positions and flee. In accordance to Coinbase information, speculative leverage in the crypto sphere has dropped to a historic low of 4%.

In earlier ETH quick positions, an essential half got here from conventional Lengthy BTC/Quick ETH pair trades, particularly when this pair normally performs properly in previous bear markets. Nevertheless, an surprising occasion occurred this time. The ETH/BTC ratio has maintained a sideways resistance pattern since November.

ETH at present has a buying and selling platform inventory of 13 million cash, roughly 10% of the full provide, at a historic low. With the Lengthy BTC/Quick ETH pair turning into ineffective since November and excessive market panic, there might regularly be “quick squeeze” alternatives.

Because the 2025–2026 interplay approaches, each the US and China have already despatched pleasant indicators concerning future financial and monetary insurance policies:

The US might be proactive in the longer term, with tax cuts, rate of interest reductions, relaxed crypto laws, whereas China will appropriately loosen, specializing in monetary stability (suppressing volatility).

Within the state of affairs of comparatively unfastened expectations in each the US and China, suppressing asset draw back volatility, and with ETH nonetheless in an excellent shopping for “dip zone” throughout excessive panic when funds and feelings haven’t totally recovered, ETH stays in a positive place.