Ethereum Tipped as 'Stablecoin Wars' Victor by Bloomberg Analyst: Spotlight on Adoption Trends
A Bloomberg Intelligence crypto analyst believes Ethereum (ETH) is poised to dominate the impending 'stablecoin wars.
On social platform X, Jamie Coutts highlights Ethereum's dominance, noting that along with layer-2 projects such as Optimism (OP), Base, and Arbitrum (ARB), it surpasses other alt networks in network-adoption metricsv
Coutts points out on Ethereum, transferring Tether (USDT) – the market's leading stablecoin – is considerably costlier than on other networks, especially layer-2s. He adds, "With Ethereum's focus on rollup-centric scaling, we can expect L2 transactions to become significantly cheaper (10-100X) next year, thanks to EIP-4844 (proto-danksharding).
The Bloomberg analyst also explores the prospect of PayPal launching its own layer-2 network, following its recent introduction of the PYUSD stablecoin. Coutts emphasizes that stablecoin adoption is surging, potentially eclipsing Bitcoin (BTC) user numbers in the next 3-5 years due to merchant integration, product innovation, and scaling solutions.
"Stablecoin adoption is best gauged by addresses holding a balance greater than $1," notes Coutts. "This key metric recently reached an all-time high of roughly 17.4 million addresses, marking a sevenfold increase since 2021 and surpassing both Bitcoin and Ethereum in growth.
Aug 30, 2023
