As the cryptocurrency market continues to rally following the Federal Reserve’s interest rate cut, analysts are anticipating a significant increase in Ethereum’s on-chain activity.
Jasper De Maere, Research Lead at Outlier Ventures, suggested that a sustained bull market could drive a surge in Ethereum’s on-chain activity, primarily fueled by speculation and increased engagement in decentralized applications (dApps).
De Maere highlighted the pent-up demand for projects seeking to launch on Ethereum, indicating that a wave of new offerings could emerge as market conditions improve, boosting activity across various cryptocurrency sectors.
Regarding the potential for renewed adoption of the Ethereum network, De Maere emphasized the growth potential of DeFi. He noted that the smart money operating on-chain is likely to shift back to DeFi, which could have a bullish impact on Ethereum.
While financial incentives might drive short-term adoption, De Maere stressed that true product adoption relies on the functionality of the product itself, rather than solely financial gains.
One potential consequence of improved liquidity and increased risk appetite, fueled by further rate cuts, could be a slowdown in the adoption of real-world asset (RWA) tokenization, particularly for yield-bearing assets like U.S. Treasury bills.
