According to a crypto market analyst at Bloomberg Intelligence, Jamie Coutts, Ethereum (ETH) is expected to emerge as the winner of the “stablecoin wars” due to its massive adoption trends. Coutts asserts that Ethereum, along with its layer-2 projects such as Optimism, Base, and Arbitrum, outperforms all other alternative networks in terms of network-adoption metrics.
However, Coutts acknowledges that the cost of transferring the top stablecoin, Tether (USDT), on Ethereum is significantly higher compared to other networks, particularly layer-2 solutions. He highlights that Ethereum’s rollup-centric scaling roadmap, including the implementation of EIP-4844 (proto-danksharding), will further reduce transaction fees on layer-2s by 10-100X in the upcoming year.
Furthermore, Coutts mentions the potential future launch of a layer-2 network by payments giant PayPal, which recently introduced its own stablecoin, PYUSD. He points out that stablecoin adoption is rapidly increasing, and the number of stablecoin users could potentially surpass Bitcoin users within the next three to five years due to merchant company integration, product innovation, and scaling.
Coutts also emphasizes that the number of addresses with over $1 stablecoin balance has reached an all-time high of approximately 17.4 million, reflecting a 7X increase since 2021 and surpassing the growth of both Bitcoin and Ethereum.
Read Now: Ethereum prices surge as whale swiftly snaps up 8,000 ETH: what’s next?