Over 50 Non-Crypto Companies Develop Projects on Ethereum According to Galaxy
Ethereum currently faces challenges, largely due to the overall lack of momentum for altcoins and negative sentiment surrounding it. Greg Magadini from Amberdata indicated that Ethereum's supply burn mechanism, created by EIP-1559, has lost effectiveness as transactions increasingly occur on Layer 2 solutions, shifting ETH from a deflationary to an inflationary asset.
Despite these challenges, a report by Galaxy's Christine Kim highlights positive developments:
- Over 50 non-crypto companies are building on Ethereum or Ethereum Layer 2s, including 20 financial institutions and 10 banks.
- The primary use case is real-world assets (RWAs), with significant activity in tokenized assets like money market funds and government bonds.
- Ethereum has issued more RWAs than the Layer 2 rollup ZKSync.
- Gaming is emerging as another key use case for NFTs among non-crypto-native companies, supported by the scalability of Ethereum Layer 2s.
The findings suggest ongoing development within Ethereum's ecosystem, attracting interest beyond the crypto sector.