Why Ethereum Still Has Huge Growth Potential
The Outlook for Web3 Payments is Favorable for ETH, UNI, MKR, AAVE and Other Projects
In recent years, stablecoin payments have gradually entered the real world, with traditional institutions and companies actively laying out in this field. For example, PayPal has launched its own stablecoin, and Stripe has acquired Bridge for $1.1 billion, further enhancing its global payment capabilities. In addition, the Bank of Thailand has also begun to support stablecoin transfers. These trends indicate:
1. Stablecoin payments are gaining scale: With the participation of major institutions, stablecoin payments have begun to carve out a place in the market.
2. Optimistic outlook: Stablecoin payments have the potential to capture the traditional fiat transfer market. Cross-border transfers are not only expensive but also slow, requiring bank accounts, which present high barriers to entry.
3. The power of network effects: Imagine the viral effect similar to WeChat red envelopes; once the payment market reaches a certain scale, subsequent growth may become exponential.
The Core Competitiveness of Ethereum
1. Security and Speed: Security and speed are critical for financial payments. Institutions involved in Web3 payments will ultimately lean towards choosing Ethereum to ensure transaction efficiency and security.
2. The Importance of Scalability: Ethereum's key task in the medium term is to enhance network performance and reduce transaction costs. These issues must be resolved before the surge in payment demand in order to meet future challenges.
3. The Core of Revenue Growth: The increase in Ethereum's price mainly relies on transaction fee revenue. Reducing supply and increasing demand will drive revenue growth, particularly from corporate demand, which will become the main driving force. This is similar to the revenue models of traditional giants; for example, WeChat and Google's core revenue comes from enterprise services, Microsoft relies on enterprise cloud services, and McDonald's revenue largely comes from franchising.
Through short-term sacrifices, Ethereum has the potential to achieve greater long-term returns.
