Ethereum growth driven by institutional interest & Layer 2

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Ethereum has witnessed an incredible increase of 42% within a week, primarily due to the growing recognition of the actual value of cryptoassets. Interest from institutions and retail investors in blockchain payments and stablecoins is on the rise. Technically, the Pectra upgrade completed on May 8 enhances the operational performance of the network.

Regarding applications, the issuance of stablecoin on-chain Ethereum accounts for 51%. Stripe has launched a stablecoin account service for businesses, and Meta has restarted its stablecoin project. Robinhood will deploy tokenized securities services on Ethereum Layer 2 after acquiring the Layer 2 exchange WonderFi for 179 million USD.

The progress of the bill regulating stablecoins in the United States provides a clearer policy environment for the market. The use of ETH to pay gas fees on Layer2 networks will create long-term support demand.

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