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The era of globalized stablecoins: why Ethereum is the biggest beneficiary
Amidst the structural changes in the cryptocurrency market, Ethereum is gaining attention. As the proliferation of stablecoins and the growth of on-chain finance intertwine, analyses suggest that Ethereum is at the center of this transformation. Jack Lee, founder of Liquid Capital, recently pointed out that Ethereum is the biggest beneficiary in the global expansion of stablecoins and blockchain-based finance.
The Expansion of On-Chain Finance and the Importance of Ethereum
As blockchain-based finance grows, Ethereum’s role becomes increasingly vital. This is because stablecoins are establishing themselves as the primary currency for various on-chain financial activities such as international remittances, asset management, and DeFi transactions, leading to an increase in the value of platforms built on them.
Currently, Ethereum is trading around $3,020 and is seen as a direct beneficiary of the rising network demand driven by the expansion of the stablecoin ecosystem. Ethereum’s transaction fees, smart contract executions, and staking yields are correlated with the increase in stablecoin trading volume.
Investment Opportunities During Market Correction Phases
Short-term price fluctuations are natural in the cryptocurrency market. Jack Lee continues to actively purchase Ethereum at lower price levels and participates in various Ethereum-based investment platforms. This strategy is based on the long-term growth potential of blockchain finance.
Among investors, there is an expectation that as the global adoption of stablecoins progresses, the value of the Ethereum network will increase. This is why building long-term positions beyond short-term price swings is considered a key strategy.
The Significance of Globalizing Stablecoins
Stablecoins help mitigate price volatility, improve cross-border transaction efficiency, and enable practical use of decentralized finance. As this trend becomes mainstream, the network value of blockchain platforms based on stablecoins could increase exponentially.
Industry experts generally agree that only through consistent capital expansion and sustained long-term investment can one secure ultimate profits from these market changes. In a situation where Ethereum is expected to strengthen its position as a core infrastructure for stablecoins and on-chain finance ecosystems, the current dip is viewed as an opportunity to expand positions.