Ethereum provides the base layer for international finance through digital treasuries, while sovereign nations use the blockchain for multiple purposes.

The pattern of blockchain use is shifting from experiments in retail to broader adoption by large firms, and Ethereum is becoming the basis for developing a new generation of compliance-friendly financial systems that can be programmed.

This trend is well reflected by the explosive activity in the real-world asset (RWA) space. Messari data shows that tokens for RWAs total $9.8 billion in this network, which is more than four times the amount found on any other platform. 

ZkSync Era is the closest competitor, having a market cap of roughly $2.2 billion. Behind them are Polygon, Solana, Stellar, and Algorand, which have a market value of $300 million to $500 million. Being so far ahead proves Ethereum’s dominance.

Ethereum Becomes the Choice for Government and Major Businesses

During the past year, the worth of tokenized RWAs increased by 215% primarily because of increased interest from traditional financial institutions. These institutions are trying to fulfil regulatory requirements and access the next-generation features that tokenized solutions offer. 

Joe Lubin, Ethereum co-founder, and Consensys CEO, says sovereign groups and big financial institutions are reviewing the network for its use as fundamental infrastructure. Lubin spoke recently about a “vast country” that is close to signing agreements with Ethereum ecosystem leaders to develop national-level blockchain infrastructure and applications across various layers.

Experts in the industry are not limited to discussing the deployment of technology. Lubin said that not only are these entities looking at Ethereum to serve as infrastructure, but more are also using it to build reserves. 

It is worth noting that Ethereum is also an asset that people can stake or integrate into DeFi while benefiting from high-level institutional handling. This year, Consensys drove a $425 million investment into SharpLink Gaming, which is based on Ethereum and focuses on actively managed digital treasuries. 

SharpLink plans to generate profit for its treasury by using ETH in staking, or participating in DeFi while keeping all activities compliant, an approach that traditional Bitcoin or fiat-based treasuries do not offer.

Public Bodies Are Also Considering Ethereum 

Additionally, Ethereum is becoming increasingly appealing to public bodies. In some places, governments are examining how to use this blockchain for bond transactions, real estate information management, and citizen identification systems. 

There is now a new understanding of this network among governments and institutions. Although Bitcoin started as a form of digital gold, Ethereum is now being regarded as a “trust engine” because it not only stores value but also manages and monitors “smart” rules on-chain.

Ethereum’s roadmap is helping push for this evolution in the network. Vitalik Buterin, Ethereum co-founder, at a recent event, talked about how to make scaling Layer 1 by a factor of 10 possible in the coming year. 

Hence, the network could handle many more transactions while still being secure and decentralized, which is essential as more institutions and nations depend on the network.

Digital Public Utility Role Is the Focus for Ethereum in the Future

Apart from making Ethereum more scalable, its developers are emphasizing privacy, the ability to communicate only with authorized users, and the modularity of the network, which is essential for businesses to work with the cryptocurrency. 

Also, the blockchain is now gradually being adopted worldwide as an additional layer to existing financial systems. Before, Ethereum was seen as a smart contract platform, but now it does much more. 

It is on its way to becoming a digital utility, helping build advanced capital markets, digital treasuries, and sovereign systems. 

Massive Drops in ETH Exchange Inflows

New data show that ETH being transferred to exchanges has been considerably less compared to previous weeks. The total amount of ETH entering trading platforms reduced from exceeding 1 million ETH in late May to less than 500,000 ETH by June 4. 

A large portion of Ether was deposited into exchanges on these days, reaching over 1.2 million in total. Yet, by June 4, the total had gone down by more than half. Maybe traders are less eager to sell, or they could be waiting for a better situation in the market.  

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