Galaxy

Galaxy Report: ETH Dominates Enterprise Blockchain Adoption with Use Cases like NFT and RWA Tokenization

ChainCatcher news, according to Bitcoin.com, based on a report by Galaxy Digital's Vice President of Research Christine Kim, over 50 traditional companies, including financial institutions like Deutsche Bank and Paypal, as well as brands like Louis Vuitton and Adidas, are developing cryptocurrency-specific applications on Ethereum and its L2 networks, focusing on non-speculative use cases such as RWA tokenization, NFTs, Web3 gaming, and scalable infrastructure.The report states that Ethereum is leading in RWA tokenization, with the value of managed assets nearly 10 times that of Stellar. Among 20 financial institutions building crypto infrastructure, 13 are issuing RWA, including BlackRock's BUIDL. Stablecoins are also thriving on Ethereum, with Paypal's PYUSD and Robinhood's USDG driving a 70% supply surge in 2024, while Ethereum holds over 50% of the $400 billion stablecoin market.Investment in scalable infrastructure emphasizes enterprise adoption. Deutsche Bank is developing a compliant financial solution on Ethereum L2 with ZKSync, while Sony's L2 project Soneium targets gaming and entertainment. These projects highlight Ethereum's role as a customizable foundation for enterprise-grade blockchain.Additionally, the centralized roadmap for Ethereum L2 balances scalability and security, attracting institutions seeking effective on-chain solutions. Regulatory tailwinds, including the SEC's focus on tokenization and collaborations like Stripe's $1 billion acquisition of stablecoin platform Bridge, indicate increasing mainstream adoption.Galaxy's report concludes that Ethereum remains the preferred chain for finance-focused crypto services, with RWA and stablecoins expected to expand by 2025. Kim noted, "As the most decentralized, widely covered, and longest-running general-purpose blockchain, Ethereum serves as a gateway for many institutions to incubate and launch finance-focused crypto services and products."

Galaxy Report: Venture Capital in the Cryptocurrency Sector Reaches $11.5 Billion in 2024, Still Below Previous Bull Market Levels

ChainCatcher news, according to CoinDesk, Galaxy Digital stated in a research report on Wednesday that despite the recent rise in digital asset prices, cryptocurrency venture capital (VC) activity remains below previous bull market levels. In 2024, the total capital allocation of venture funds to the crypto industry is $11.5 billion, down from 2023. Galaxy pointed out that in the early rounds of bull markets in 2017 and 2021, VC activity was highly correlated with crypto asset prices, "but in the past two years, despite the rise in cryptocurrencies, VC activity has remained sluggish."There are several reasons for the stagnation in the venture capital market. Galaxy stated that these reasons include a "barbell market," where Bitcoin and its new spot ETF take center stage, while meme coins have "limited marginal net new activity." These meme coins struggle to secure funding and have a "questionable lifespan."The report noted that new projects at the intersection of artificial intelligence (AI) and cryptocurrency are gaining increasing attention, and upcoming regulatory changes may bring more opportunities for stablecoins, decentralized finance (DeFi), and tokenization. The report indicated that some large investors may gain exposure to cryptocurrencies through Bitcoin spot ETFs, "rather than turning to early VC investments."Galaxy stated that the U.S. completed the most transactions and invested the most funds in the fourth quarter. Galaxy added that early-stage deals accounted for 60% of the total investment in the fourth quarter, with stablecoin companies raising the most funds.The report also noted that in 2024, venture capitalists invested a total of $11.5 billion in startups focused on cryptocurrency and blockchain. These funds invested $3.5 billion in 416 deals in the fourth quarter, a quarter-over-quarter increase of 46%.
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