Ethereum (ETH) and the outlook of the cryptocurrency market based on stablecoins
Ethereum [ETH] may be significantly undervalued if the stablecoin market explodes to $3.7 trillion by 2030. This is the prediction shared by Fundstrat's top analyst, Tom Lee. A strong increase in the stablecoin market will drive demand for the Ethereum network, while also creating opportunities for ETH to increase in value.
In this context, on-chain metrics suggest that ETH is undervalued at the price of $2,500. This suggests that, if a stablecoin boom occurs, ETH could greatly benefit from this trend, as stablecoins like USDT and USDC account for about 25% to 30% of the current Ethereum network transaction fees.
Analyzing the role of stablecoins in Ethereum
This week, the GENIUS law was passed without causing an immediate clear price reaction for ETH. Instead, stablecoins like Circle's CRCL and Coinbase's COIN have doubled in price, reflecting the benefits from this new regulation.
The new policy could drive the growth of stablecoins, expected to increase a full 15 times (from $250 billion to $3.75 trillion), thereby leading to a massive fee influx on the ETH network—highlighting the potential for ETH to benefit from the expansion of the stablecoin market.
The role of stablecoins in ETH transaction fees
In the past 30 days, major stablecoins like Tether, Circle, and Ethena have contributed over $700 million to Ethereum's network fees. Notably, these three entities dominate the top positions in the list of highest fee contributors, reflecting the importance of stablecoins in the Ethereum ecosystem.
Source: DeFiLlama
Valuing ETH based on on-chain metrics
Interestingly, according to the MVRV Z-score index, ETH is currently at a reasonable price when trading around $2,500. In the current cycle, if this index reaches 2 or 1.5, ETH could potentially peak at around $4,000. This indicates significant growth potential before ETH hits a possible peak price of around $4,800 or $6,400 based on historical analysis models.
Source: Glassnode
The current MVRV index is 0.4, indicating significant room for growth before ETH reaches a local peak. If this trend continues, ETH could reach price levels of $4,800 or even $6,400 based on price analysis models.
Source: Glassnode
Final assessment of the ETH market and growth potential
With stablecoins continuing to scale, Ethereum is likely to become the primary platform for processing large-scale financial transactions in the near future. On-chain metrics suggest that the current price of ETH does not accurately reflect its true potential.
Therefore, investors should closely monitor technical indicators such as the MVRV Z-score and price levels based on pricing models to determine the right time to accumulate or take profits. The development of the stablecoin market is key to driving the long-term growth of ETH in the cryptocurrency ecosystem.
Source: https://tintucbitcoin.com/eth-thap-bat-thuong-15x-tang-thuc-day/
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