According to Bitwise, Ethereum could potentially recoup $100 billion in fees from RWA tokenization. The major whales, which hold 57% of the ETH supply, continue to increase their holdings. If ETH sustains its long-term move above the annual resistance level at $4,093, ETH could rise above $4,300.
Ethereum (ETH) fell 3% on Tuesday following Bitwise’s prediction that increased RWA tokenization will increase the attractiveness of top altcoins. Meanwhile, large whales have been accumulating ETH for the past month.
Ethereum could drive increased RWA tokenization in 2025
In a recent note to investors, Bitwise senior investment strategist Juan Leon predicted that Ethereum could be the biggest beneficiary of the recent trend in real world asset (RWA) tokenization. did.
Multi-trillion dollar asset management firm BlackRock already boasts $578 million in BUIDL tokenized Treasury funds, while total value locked (TVL) amounts for RWA projects like Ondo Finance is over $600 million. As a result, Bitwise believes that tokenized funds will be the dominant theme in 2025, with “Ethereum being the driving force.”
”[Ethereum] It currently holds a commanding 81% market share in tokenized assets, and its long track record and large decentralized validator network allow asset managers to rely on security when moving assets on-chain. and confidence in reliability,” said Leon.
Additionally, the memo highlighted that the $100 trillion RWA market could contribute more than $100 billion in annual fees to Ethereum if it moves on-chain.
“The next pro-crypto SEC is expected to clarify the regulations needed to accelerate tokenization, and investors who stake their rights in Ethereum now will see significant benefits over the coming period. “We may be subject to this,” Leon concluded.
Meanwhile, Santiment data reveals that Ethereum keyholders continue to accumulate ETH, suggesting strong expectations for signs of a bull market.
According to the data, 104 wallets currently hold at least 100,000 ETH, representing 57% of all ETH in circulation. Notably, these holdings also include DeFi and staking wallets, suggesting investors may not be looking to sell their tokens anytime soon.
There are currently 104 whale wallets holding at least 100,000 Ethereum. The combined holdings of both companies currently represent 57.35% of all existing ETH tokens, with a current value of approximately $333.1 billion.
Meanwhile, wallets between $100,000 and $100,000 maintain an all-time low supply rate of 33.46%. And less than 100ETH… pic.twitter.com/9qDN3lotQy
— Santiment (@santimentfeed) December 17, 2024
Additionally, the Ethereum ETF continued its streak of inflows, achieving its 16th consecutive day of positive flows on Monday with $51.1 million in net inflows, according to Coinglass data.
Ethereum Price Prediction: ETH could rise to $4,380 if it closes above the $4,093 resistance
Ethereum fell 3% after continuing to liquidate $48.82 million in the past 24 hours. The total amount of long positions liquidated was $40.66 million, and the amount of short positions liquidated was $8.16 million.
The top altcoin has been consolidating within a major rectangular channel for the past seven days after testing, failing to sustain a move above the yearly high resistance at $4,093.
ETH/USDT hourly chart
If it sustains above this level, ETH could rally towards $4,380. However, if the price breaks out of the support level near $3,820, it could fall towards the support level near $3,550.
The Relative Strength Index (RSI) is below the neutral level, indicating that bullish sentiment is fading. The stochastic oscillator is in oversold territory. Historically, when Stoch on the hourly chart entered oversold territory, the price quickly recovered.
If the daily candlestick closes below $3,550, the theory is invalidated.
Frequently asked questions about Ethereum
Ethereum is a decentralized open-source blockchain with smart contract capabilities. Its native currency, Ether (ETH), is the second largest cryptocurrency by market capitalization and number one among altcoins. The Ethereum network is tailored for building cryptographic solutions such as decentralized finance (DeFi), GameFi, non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs).
Ethereum is a public decentralized blockchain technology that allows developers to build and deploy functional applications without the need for a central authority. To facilitate this, the network leverages the Solidity programming language and the Ethereum virtual machine, allowing developers to create and launch applications with smart contract functionality.
A smart contract is a publicly verifiable piece of code that automates an agreement between two or more parties. Essentially, these codes self-execute the coded actions if a given condition is met.
Staking is the process of earning revenue from idle crypto assets by locking them in a cryptographic protocol for a specified period of time as a means of contributing to security. Ethereum transitioned from Proof of Work (PoW) to Proof of Stake (PoS) consensus mechanism on September 15, 2022 in an event dubbed “Merge”. This merger was an important part of Ethereum's roadmap to achieve high levels of scalability, decentralization, and security while maintaining sustainability. Unlike PoW, which requires the use of expensive hardware, PoS reduces the barrier to entry for validators by leveraging the use of cryptographic tokens as the core foundation of the consensus process.
Gas is a unit that measures the transaction fees users pay to conduct transactions on Ethereum. When the network is congested, gas can be very high and validators may prioritize transactions based on fees.
