Ethereum at the center of transformation: From Wall Street to blockchain

The scenario of transforming financial markets on blockchain is no longer just speculation – it is becoming a reality shaped by political and economic elites on the backbone of the base rate. Along with the latest Ethereum update and clear regulatory support, Ether (ETH) is entering a new phase where technology meets institutional interest.

Wall Street prepares the ground for a revolution

The statement by SEC Chairman Paul Atkins on December 3rd on Fox Business did not go unnoticed. He stated that the entire US financial market could move to blockchain within a few years, not decades as previously assumed.

Atkins’ key arguments concern three aspects:

Ownership transparency – If assets exist on the blockchain, the ownership structure becomes completely transparent. Paradoxically, many public corporations still do not know the full profile of their shareholders or the distribution of their shares.

T+0 settlements – Blockchain enables instant (T+0) settlements instead of the current T+1 cycle, eliminating sources of systemic risk related to delays.

Inevitable trend – Major banks and brokerage firms are already investing in tokenization, heading towards a future where finance operates on blockchain.

This vision does not appear in a vacuum. Wall Street and Washington have been building a capital network in cryptocurrencies for years, creating a new value chain:

Dollar → US Treasuries → Stablecoins → RWA and Ethereum L2 → ETH

Each link in this chain plays a role:

• Stablecoins (USDT, USDC, WLD) – reserve currencies backed by short-term US Treasuries
• US Treasuries – income-generating assets that build ecosystem stability
• RWA (Real World Assets) – tokenization of securities, loans, mortgage bonds
• Ethereum and L2 – main infrastructure supporting capital flows

ETH recovers faster than the entire markets

After the October decline, the entire cryptocurrency market remained stagnant, but Ethereum showed a different dynamic. While TVL (Total Value Locked) on other blockchains continued to fall, ETH rebounded quickly.

Currently, TVL in the RWA ecosystem amounts to $12.4 billion, representing 64.5% of the total market value of this segment. This indicates where institutional capital is flowing – directly into Ethereum.

Current ETH situation:

• Price: $3.16K
• 24h change: +2.08%
• 24h volume: $394.49M
• Market capitalization: $381.01B

Fusaka: Value capture returns to L1

The recent Ethereum update Fusaka may look technical – but economically it is a breakthrough. The L1 problem was that most activity and fees migrated to L2, leaving the main network with less value capture.

What does Fusaka change?

EIP-7918 introduces dynamic blob base fee, linked to L1 fees. This means Rollups can no longer benefit from blob throughput for free long-term. Every L2 transaction now requires burning a minimum amount of ETH.

Burning has three stages of development:

1. London – burning only from the execution layer
2. Dencun – burning from blobs, but independent of demand
3. Fusaka – blob fees linked to L1, stabilizing burning

Effects are already visible. On December 11th, blob fees increased 56,963 times compared to pre-Fusaka levels, burning 1527 ETH in one day. Blobs now account for 98% of all burning.

As L2 activity grows, this update could restore Ethereum to deflation – meaning decreasing ETH supply despite increasing network usage.

Technical fundamentals are positive

October panic cleared out speculators. ETH futures leverage dropped to 4% – a historically low level. The traditional Long BTC/Short ETH pair, which used to work flawlessly, has been underperforming since November.

ETH positioning:

• 13 million ETH on exchanges (10% of total supply) – the lowest level historically
• ETH/BTC ratio remains sideways, resisting additional pressure
• Weak leverage creates a scenario for a potential “short squeeze” during panic periods

Macro environment supports a bullish play

The coming years 2025-2026 send a clear signal from both sides of the Atlantic. The US signals tax cuts, interest rate reductions, and liberalization of cryptocurrency regulation. China prepares for moderate easing of monetary policy and financial sector stabilization.

In a scenario of mild fiscal policy, limited volatility, and slow sentiment recovery, ETH remains in a favorable buy zone – especially given investors’ lack of full trust in Ethereum and insufficient new capital capture.

Blockchain is no longer the future – it is the present that Wall Street is building now, with Ethereum at the very center of this transformation.