Ethereum's On-Chain Boom: Asia Leads Tokenization Charge

Happy Friday, TM Family!

Welcome to the Token Metrics Research | Daily newsletter, where we cover key market movements, regulatory updates, and early alpha for our readers and investors. 

Let's dive in! 

Today's edition of Token Metrics Research | Daily Newsletter is brought to you by Pacaso.

In 2010, a Grammy-winning artist passed on investing $200K in an emerging real estate disruptor. That stake could be worth $100+ million today.

One year later, another real estate disruptor, Zillow, went public. This time, everyday investors had regrets, missing pre-IPO gains.

Now, a new real estate innovator, Pacaso – founded by a former Zillow exec – is disrupting a $1.3T market. And unlike the others, you can invest in Pacaso as a private company.

Pacaso’s co-ownership model has generated $1B+ in luxury home sales and service fees, earned $110M+ in gross profits to date, and received backing from the same VCs behind Uber, Venmo, and eBay. They even reserved the Nasdaq ticker PCSO.

Invest for $2.90/Share

_{Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.}

Now let's get back to the top stories of the day.

Ethereum is experiencing a notable resurgence in network activity, underscoring its foundational role in DeFi and beyond. Recently, daily transactions have averaged 1.5 million, up sharply from 950,000 at the start of 2024, with active addresses nearing a record 600,000.

This surge has propelled DeFi TVL on Ethereum to $97B, the highest since November 2021, reflecting robust institutional participation and consistent gas usage around $1M daily. Spot Ethereum ETFs have amplified this momentum, pulling in over $2.8B in a single week, though recent outflows of $196.6M highlight some volatility in flows.

Adding fuel to the fire, a long-dormant Bitcoin whale, linked to holdings worth billions, recently rotated out of BTC into Ethereum, acquiring 62,914 ETH ($270M) in spot markets and opening a $580M derivatives long position.

This isn't isolated; multiple ancient BTC wallets have reactivated amid market highs, with ETF data showing $287.6M in net inflows for Ether funds versus $194.3M outflows for Bitcoin ETFs.

Meanwhile, Chainlink (LINK), a critical oracle for Ethereum's DeFi ecosystem, is in a sentiment-driven tug-of-war: social euphoria has historically preceded 30%+ corrections, but fundamentals like wallet growth, expansion into stock/ETF data streams, and a bullish chart pattern suggest strength. 

For crypto natives, this paints Ethereum as the asset to watch for rotational plays. With ETH trading around $4,200 and eyeing its 2021 ATH of $4,878, the network's utility in DeFi and RWAs could further erode Bitcoin's dominance, especially if macro tailwinds emerge.

Consider layering into ETH longs if on-chain metrics hold, but monitor ETF flows for short-term dips. Fundstrat's Sean Farrell sees ETH hitting $10,000-$15,000 by year-end, aligning with our firm's bullish outlook on layer-1 scalability.

Asia's financial institutions aggressively push tokenized assets, blending blockchain efficiency with regulatory compliance. Singapore's DBS Bank, the region's largest, has launched tokenized structured notes on Ethereum's mainnet, starting with crypto-linked participation notes offering upside exposure with downside protection.

These $1,000-denominated tokens, distributed via platforms like ADDX and DigiFT, lower barriers from traditional $100,000 minimums. Over $1B in crypto-linked notes were processed in H1 2025 alone, up 60% QoQ. Trading is whitelisted for accredited investors, ensuring KYC/AML adherence, with plans for atomic settlements using stablecoins and cross-chain wrapping.

SBI Holdings, managing $74B in assets, is doubling down in Japan via a joint venture with Startale (behind Sony's Soneium L2) to build an institutional platform for tokenized U.S. and Japanese stocks. 

Features include 24/7 trading, fractional ownership, near-instant settlements, and DeFi integration. The tokenized market is projected to hit $18.9T by 2033.

SBI is also partnering with Ripple to roll out the RLUSD stablecoin in Japan by Q1 2026. USD reserves back it and aims to expand options in a market with a stablecoin supply of $266B.

South Korea's top banks (Shinhan, Hana, Woori, KB) are in talks with Tether and Circle for USD-pegged stablecoin distribution, aligning with President Lee Jae Myung's pro-crypto push.

This wave of adoption from Asia's banking giants validates RWAs as the next trillion-dollar frontier. For investors, focus on Ethereum-layer projects like Chainlink for oracle support and stablecoin issuers like Ripple/Circle for yield opportunities. Our firm sees tokenized equities as a portfolio diversifier, but watch for regulatory hurdles; SBI's moves could catalyze similar platforms globally, boosting liquidity in under-traded assets.

The crypto market is treading water as all eyes turn to Fed Chair Jerome Powell's Jackson Hole address today at 10:00 a.m. ET. Bitcoin is holding steady at nearly $112,000 after failing to breach $115,000.

The CoinDesk 20 Index is down 0.46%, reflecting broader ETH, SOL, and XRP pullbacks amid $1B in Bitcoin fund outflows and $500M from Ether ETFs this week. Options imply a ±2% BTC swing post-speech, with analysts anticipating a hawkish tone given July FOMC minutes showing concerns over sticky inflation above 2%.

Mixed data: cooler CPI but hotter PPI and potential Trump tariffs have trimmed September rate-cut odds to 74.4%, down from 92%. The Fed may retire its flexible inflation targeting, reverting to a challenging 2% goal.

A hawkish Powell could trigger a 30% BTC correction in a risk-off environment, aligning with seasonal September weakness (average -4.68% loss historically). Conversely, dovish surprises might spark rallies, especially for alts like ETH. Position defensively: hedge with stablecoins or options, and eye upcoming data like PCE inflation for longer-term bets. Bitwise's pension inflow thesis could still push BTC to $200,000 long-term, but near-term macro trumps all.

The U.S. GENIUS Act, passed last month to regulate the stablecoin sector, is jolting Europe into action: EU policymakers are rethinking the digital euro strategy, potentially launching it on public chains like Ethereum or Solana to counter USD dominance from USDT/USDC. This shift from a private, centralized system aims to boost global circulation amid rivals like China's digital yuan.

On the security front, a victim lost 783 BTC ($91.4M) to a social engineering scam impersonating hardware wallet support, with funds laundered via Wasabi Wallet, adding to $3.1B in H1 2025 losses from hacks and scams.

The GENIUS Act could fragment stablecoin markets but accelerate CBDC adoption, favoring interoperable chains like Ethereum for euro-backed assets. For investors, this means diversification into non-USD stables, but prioritize security: use multi-sig wallets, avoid unsolicited support, and enable 2FA. Scams like this erode trust, yet they underscore the need for robust security in high-value holdings. We recommend regular audits for whale-level portfolios.

Most people think you need thousands to profit from crypto.

But this free book exposes how even small investments could transform into life-changing wealth using 3 specific strategies.

As markets recover, this may be your last chance to get positioned before prices potentially soar to unprecedented levels.

Claim Your Free Report Now