How Onchain Governance and Stablecoins Fuel Startup Societies in Brazil
Brazil is making headlines in the crypto world once again—this time with ipecity, a fully digital society powered by blockchain. Highlighted by Balaji Srinivasan on May 16, 2025, this pioneering project blends onchain identity, social graphs, and stablecoins to create a governance model independent of traditional state structures.
At the core of ipecity’s design are three Ethereum-based technologies:
Ethereum Name Service (ENS) for digital identities
Ethereum Follow Protocol (EFP) for decentralized social connections
Stablecoins like USDC and USDT to facilitate real-time economic transactions
This combination reflects the maturity of blockchain technology, showing that crypto is now more than a financial asset—it’s a societal infrastructure.
A Surge in Market Activity Following Balaji’s Endorsement
The market wasted no time reacting to Balaji's announcement. Ethereum (ETH) spiked 3.2% to $3,150 on Binance within an hour of his tweet, accompanied by an 18% surge in trading volume. Similarly, ENS, the protocol used for onchain identity, jumped 5.7% to $26.45 on Coinbase, with trading volume climbing 22% above the daily average.
Stablecoins also saw a notable increase in transaction volume across platforms like Binance and Kraken, with USDC and USDT usage rising 15%. These shifts signal growing trader interest in assets that enable or benefit from blockchain-based governance systems.
The Emergence of Startup Societies and Blockchain-Based Governance
Startup societies—decentralized communities founded on blockchain—are shifting from concept to implementation. ipecity exemplifies this trend, showing how crypto can be used to build autonomous, self-governed communities.
The key to their success lies in a seamless integration of:
Onchain identity protocols, allowing users to verify themselves without centralized authorities
Decentralized social graphs, offering secure and interoperable ways to build reputation and community
Stablecoins, providing reliable, inflation-resistant means of transacting within these societies
This signals a broader trend in crypto: real-world use cases are driving utility and pushing the ecosystem beyond speculation.
Ethereum Ecosystem Tokens Take Center Stage
Ethereum’s role as the foundational layer for these innovations is becoming increasingly evident. As startup societies like ipecity gain traction, demand is expected to grow for tokens and platforms that support governance, identity, and community formation.
On-chain activity supports this outlook. On May 16, Ethereum’s daily active addresses rose 12%, hitting 450,000, according to data from Glassnode. Meanwhile, the ETH/BTC pair on Binance saw a 10% rise in volume, indicating a shift in trader preference toward Ethereum as the platform for future societal infrastructure.
Technical Indicators Reflect Strong Bullish Momentum
From a technical perspective, Ethereum broke through key resistance levels. ETH rose above its 50-day moving average at $3,050, and its Relative Strength Index (RSI) climbed to 62, showing upward momentum without entering overbought territory.
Trading volume in ENS surged to 8.5 million tokens, a 25% increase from the previous day. The token held strong above the support level of $25.50, reinforcing confidence among investors betting on the long-term viability of blockchain-based identity systems.
Traditional Markets Show Positive Correlation with Crypto
Beyond the crypto space, traditional financial markets added fuel to the rally. On May 16, the Nasdaq-100 rose 1.1%, closing at 18,500 points. This gain in tech-heavy stocks reflected investor appetite for innovation-driven assets and was mirrored in the crypto market’s upward movement.
Institutional involvement also increased. Grayscale Ethereum Trust (ETHE) shares climbed 4% to $32.10, while Coinbase Global (COIN) gained 2.3%, closing at $225.40, according to Yahoo Finance. These shifts highlight the growing overlap between traditional finance and the crypto ecosystem, especially as digital societies take root.
The Bigger Picture: From Experimental Tech to Societal Infrastructure
ipecity is not just another blockchain project—it’s a milestone in the evolution of crypto. It demonstrates that blockchain can move beyond abstract use cases and become foundational to how we structure societies.
The rise of startup societies like ipecity aligns with growing global interest in Decentralized Autonomous Organizations (DAOs), tokenized economies, and web3 infrastructure. As more projects adopt real-world governance and identity models, Ethereum and related tokens are poised for sustained growth.
What This Means for Traders and Investors
The emergence of digital-first societies brings with it new trading opportunities. Tokens tied to identity (ENS), governance (DAOs), and utility-based stablecoins (USDC, USDT) are seeing real-world adoption—something traders should take seriously.
As Ethereum and its ecosystem mature, traders may benefit from monitoring:
Volume spikes and address activity on Ethereum
Price trends of ENS and governance tokens
Institutional inflows via crypto ETFs and equity proxies like COIN
These factors point toward a longer-term bullish trend, especially as macroeconomic confidence in tech sectors spills over into blockchain assets.
Conclusion: The Future Is Onchain
The ipecity model shows that blockchain is ready for more than decentralized finance—it’s ready for decentralized civilization. Brazil’s role in launching one of the first onchain societies could mark the beginning of a new era where crypto powers not only markets but also meaningful governance and societal change.
For traders and investors, this represents more than a market shift—it’s a paradigm shift. Keeping an eye on these developments could be the key to staying ahead of the next major wave in crypto adoption.