Ethereum News Today: Ethereum stablecoin growth boosts ETH demand via L2 adoption and regulatory clarity

JPMorgan Chase has highlighted in its latest report that the Ethereum ecosystem continues to see significant growth in stablecoin activity, which is expected to drive further appreciation in the price of Ethereum (ETH). The bank's analysts argue that the increasing issuance of stablecoins—particularly on Ethereum-based layer-two (L2) platforms—signals a structural shift in how digital assets are being adopted across both institutional and retail markets [1].

According to JPMorgan, Ethereum is emerging as the dominant infrastructure layer for stablecoin issuance and settlement, despite many of these assets being deployed via L2 solutions rather than the Ethereum mainnet. The analysts suggest that this trend reinforces Ethereum’s role as a core pillar of the digital asset ecosystem, especially in areas like cross-border payments and decentralized finance (DeFi), where stablecoins are increasingly being used as a medium of exchange [1].

The report also notes that the recent "GENIUS Act" has provided a clearer regulatory framework for stablecoins, which the analysts believe will further accelerate their adoption within the Ethereum ecosystem. This, in turn, is expected to boost demand for ETH as a settlement and gas asset for stablecoin transactions. The analysts emphasize that while stablecoins are often issued off the Ethereum main chain, their underlying infrastructure and governance remain deeply tied to the Ethereum network [1].

Supporting this view, a separate analysis from Blockscholes points out that the rise in stablecoin usage is likely to enhance the value proposition of Ethereum’s L2 networks, particularly through increased transaction volume and network participation. This aligns with JPMorgan’s assessment that Ethereum’s role in facilitating stablecoin activity is one of the key drivers for ETH’s long-term upside [2].

While JPMorgan does not explicitly forecast a specific price target for ETH, it highlights a broader trend: as more value is transacted through Ethereum-based stablecoins, the demand for ETH is likely to rise. The bank also touches on the broader evolution of Ethereum beyond being a mere transactional layer, noting that the platform is increasingly serving as a multi-layered infrastructure for a range of financial services, including the tokenization of real-world assets [1].

Despite regulatory uncertainties in certain jurisdictions, the report suggests that Ethereum’s decentralized nature offers a compelling alternative to centralized stablecoin solutions, particularly in markets where users seek to avoid capital controls or jurisdictional restrictions. The analysts acknowledge that regulatory risks remain, but they believe the Ethereum ecosystem is well-positioned to adapt and grow in response [1].

Separate developments also indicate Ethereum’s expanding utility. For instance, Ethereum’s L2 network Base has seen a surge in activity, driven by platforms like Zora, which tokenizes user-generated content. While these platforms are still in early stages, the trend reflects growing adoption of on-chain social and financial tools [3].

JPMorgan’s analysis, however, remains focused on the macroeconomic implications of stablecoin growth. The bank argues that as more value is transacted using Ethereum-based stablecoins, the network’s native token—ETH—will continue to benefit from increased demand for gas and settlement purposes. This dynamic could create a positive feedback loop, where rising stablecoin usage fuels ETH adoption, which in turn strengthens the overall value proposition of the Ethereum ecosystem [1].

Sources:

[1] JPMorgan — "Ethereum Ecosystem Stablecoin Scale Continues to Grow, Driving Continued ETH Upside" (https://www.coinglass.com/ru/news/533117)

[2] Blockscholes — "Research" (https://www.blockscholes.com/research)

[3] CoinGlass — "Is Zora turning Ethereum L2 Base into a Solana killer?" (https://www.coinglass.com/ru/news/533091)