JPMorgan: Continued Growth of Stablecoins in the Ethereum Ecosystem May Drive Sustained ETH Appreciation

According to a report by Jinse Finance, JPMorgan stated in a report on Thursday that as Wall Street begins to issue a large number of stablecoins within the Ethereum ecosystem, ETH’s recent outperformance may continue. According to the bank’s analysts, a series of dollar-pegged tokens—expected to impact Ethereum’s price following last month’s passage of the GENIUS Act, which provides a regulatory framework for stablecoins—will have an effect even if these assets are issued on Layer 2 networks rather than directly on the Ethereum mainnet. The analysts noted, “We believe Ethereum is becoming a direct gateway to the anticipated rapid growth opportunities in stablecoins, as the Ethereum network hosts the majority of these stablecoin assets, whether directly as L1 custody or indirectly through some L2 solutions.”