Ethereum’s TVL Expected to Grow by 2026 – OneSafe Blog

operations. In America, new proposals like the CLARITY Act and the GENIUS Act could impose even more compliance hurdles, creating market volatility and affecting investor sentiment. There’s a chance these regulatory shifts could lead to outflows from Ethereum, slowing the TVL growth and deterring institutional investment.

RWAs are set to change the financial scene, and Ethereum is at the center of this shift. The RWA market is anticipated to soar, backed by institutional interest and blockchain progress. Yet, this prospective growth comes with risks not to be overlooked. Challenges like liquidity illusions, regulatory obstacles, and operational hurdles could destabilize RWA-based projects.

For instance, there’s a risk of misunderstanding that tokenized assets can be traded around the clock, overlooking regulatory nuances that differ by region. Furthermore, following anti-money laundering (AML) and know-your-customer (KYC) protocols is a continual challenge, especially for privacy-blockchain projects. These factors could shake Ethereum’s ability to create a secure and stable ecosystem for RWAs.

The rise of stablecoin salaries could significantly boost Ethereum’s adoption by small and medium-sized enterprises (SMEs) across Europe. This method would allow them to pay instantly with reduced costs than banks can provide, helping with cash flow and making it easier to recruit around the world. Additionally, regulatory frameworks like MiCA make it even more appetizing to consider Ethereum for salary needs.

In recent reports, Ethereum’s B2B stablecoin liquidity surged by 156%, showing that stablecoins are becoming a common form of payment for payroll and managing treasury resources. As SMEs begin to use Ethereum for payroll, the network will likely get a lot more on-chain activity and solidify its place as a dominant platform for crypto payments.

Furthermore, Ethereum’s expanding footprint will also change payroll options for startups and decentralized autonomous organizations (DAOs). The network’s scalability upgrades and cost drops make Ethereum a good option for anyone wanting crypto payroll systems. The increased Ethereum gas limit and the emergence of Layer 2s enable high-volume payroll operations, yielding payments that settle in near real-time and can be significantly cheaper than banks.

By 2025, more than 25% of companies around the globe are expected to adopt Ethereum-based payroll solutions. This will be driven by demands for transparent, quick payment systems. Using Ethereum’s blockchain will let startups and DAOs handle payroll operations easily, enabling real-time payments and increased flexibility in how they pay employees.

Ethereum is at a crossroads in its development, with the potential for substantial TVL growth and institutional embrace. Yet, regulatory challenges and complexities surrounding tokenized assets could pose hurdles. The rise of stablecoin salaries presents an opportunity for Ethereum to attract SMEs, while its scalability positions it as a leader in startup payroll solutions. How Ethereum navigates these opportunities and challenges will play a significant role in shaping its future in the crypto ecosystem.