According to Binance News, analyst Leon Weidman from Chain Catcher shed light on Ethereum’s evolving role on the X platform. He explained that Ethereum is no longer limited to being just a smart contract platform but has become a crucial layer for settling global dollar liquidity. Approximately $90 to $100 billion worth of stablecoins, particularly USDT and USDC, are transferred daily on the Ethereum network. These transactions are used for payments, financial management, and settlement, representing real value flows on the blockchain rather than DeFi cycles or incentive mining processes. Weidman also noted that although other blockchains are seeing growth, large volumes of funds are still settled on Ethereum’s mainnet. Users are willing to pay transaction fees due to the network’s settlement assurance and trust. Stablecoins enhance blockchain utility, while Ethereum provides the necessary confidence for stablecoin transactions. Introduced in 2015, the Ethereum blockchain revolutionized the cryptocurrency and decentralized applications (dApps) space by enabling smart contracts. Today, it serves as a central platform not only for DeFi and NFTs but is also gaining importance in the global financial system. Since stablecoins are pegged to the US dollar, they facilitate ease and transparency in global financial transactions. Looking ahead, Ethereum’s increasing role is expected to drive broader blockchain adoption in the global financial system, although challenges related to network fees and scalability remain and are being addressed.
Source: binance
