Bloomberg Analyst Says Ethereum Will Be the Winner of the ‘Stablecoin Wars’ Amid Huge Adoption Traits

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A crypto market analyst at Bloomberg Intelligence thinks it’s already “fairly clear” that Ethereum (ETH) will win the “upcoming stablecoin wars.”

Jamie Coutts says on the social media platform X that Ethereum and its broader ecosystem, together with layer-2 initiatives like Optimism (OP), Base and Arbitrum (ARB), leads all different different networks throughout most network-adoption metrics.

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Supply: Jamie Coutts/X

Coutts does notice, nonetheless, that transferring the highest stablecoin by market cap, Tether (USDT), is “magnitudes extra” costly on Ethereum than on different networks, significantly layer-2s.

“ETH’s rollup-centric scaling roadmap will make L2 transactions even cheaper (10-100X) subsequent yr with EIP-4844 (proto-danksharding).”

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Supply: Jamie Coutts/X

The Bloomberg analyst additionally acknowledges the likelihood that funds big PayPal may launch its personal layer-2 community sooner or later. PayPal rolled out a brand new stablecoin, PYUSD, earlier this month.

Coutts says that stablecoin “adoption beneath the hood” is exploding and notes that the variety of stablecoin customers may even overtake Bitcoin (BTC) customers within the subsequent three to 5 years resulting from service provider firm integration, product innovation and scaling.

“A greater metric for adoption than taking a look at cyclical volumes is addresses with > $1 stablecoin steadiness. This metric has simply hit [an all-time high of approximately] 17.4 million. Since 2021, these addresses have gone up by 7X, outstripping Bitcoin and Ethereum development.”

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Supply: Jamie Coutts/X

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