Ethereum's Potential Revival Driven By RWA Tokenization Opportunities

According to Odaily, Bitwise's Senior Investment Strategist Juan Leon has expressed optimism about Ethereum's potential recovery by 2025, driven by the $100 trillion opportunity presented by RWA tokenization. In a letter shared with investors, Leon highlighted two key characteristics of this year's cryptocurrency market: Bitcoin reaching an all-time high and the meme coin craze boosting Solana's value. Compared to Bitcoin's 130% increase and Solana's 106% rise, Ethereum's 66% return this year appears modest. However, recent indicators suggest a shift in market sentiment. Over the past ten days, Ethereum ETFs have attracted a net inflow of $2 billion, which is eight times the $250 million inflow recorded in the previous four months. Notably, only three of the last ten trading days saw daily inflows of Ethereum ETFs fall below triple digits. This surge indicates renewed interest in Ethereum from both institutional and retail investors. Furthermore, the tokenization of real-world assets (RWA) could be a catalyst for Ethereum's resurgence, with the global value of this market estimated at around $100 trillion. While it may take decades for a significant portion of this market to transition to blockchain, Leon sees substantial potential for growth. Given Ethereum's 81% share of the RWA market, Leon estimates that fees generated from RWA-related activities on Ethereum could eventually exceed $100 billion annually, more than 40 times the network's current year-to-date fees of $2.4 billion.