The "Nvidia" of cryptocurrency
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The "Nvidia" of cryptocurrency
Ethereum is the "Nvidia" of cryptocurrency, the biggest winner in the first phase of development, and a must-hold asset.
Navigating Web3 tides with focused insightsBy: Stephen McBride
Translated by: Baicai Blockchain
Bitcoin (BTC) is a once-in-a-lifetime asset. Since 2009, its price has surged 40 billion-fold—turning a $100 investment into $4 billion. I know many people who bought Bitcoin early and changed their lives as a result. Some smaller cryptocurrencies have followed in Bitcoin’s footsteps. As the regulatory environment eases, more cryptocurrencies are poised for growth.
Yet despite rapid market growth, the crypto market remains small. Microsoft (MSFT) alone has a market cap larger than Bitcoin and all other cryptocurrencies combined! Why? Until recently, the crypto market was dominated almost entirely by individual investors, with little involvement from Wall Street institutions. Even when Wall Street invested in crypto, it was almost exclusively in Bitcoin—this is a major reason why Bitcoin holds nearly two-thirds of the entire cryptocurrency market.
But that era is ending. Wall Street capital is beginning to flow into smaller cryptocurrencies. This presents an opportunity—and here's how we can profit from it…
Wall Street Was Effectively Banned From Investing in Small Cryptocurrencies
I use the word "effectively" because there was no explicit law banning investments in small cryptocurrencies. However, previous governments placed immense pressure on crypto innovators and investors. Crypto banks were shut down by the government, founders and funds were prosecuted and de-banked, and protocols faced ongoing surveillance and crackdowns. Innovation stalled and capital dried up. Who would risk prison and ruin?
Now, that’s changing. The U.S. House of Representatives just concluded “Crypto Week,” during which lawmakers voted on three new crypto bills:
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The GENIUS Act will provide the U.S. with its first real stablecoin framework.
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The Anti-CBDC Surveillance Nation Act will ban Washington from creating a government-controlled stablecoin.
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The CLARITY Act will address crypto’s thorniest regulatory issue: how tokens are classified.
In short, these bills legitimize crypto. The House has passed all three, and Trump has signed the GENIUS Act into law. Meanwhile, the Anti-CBDC and CLARITY Acts are now moving to the Senate. This is a major win for crypto.
These three bills are part of a broader effort to legalize crypto. Regulatory clarity is the key to unlocking trillions of dollars from Wall Street and will spark a wave of innovation in crypto.
Wall Street’s Endgame Is…
Tokenization. The true disruptive power of blockchain lies in eliminating middlemen and creating a bankerless financial system. We’ve already seen this in crypto’s “killer use case”—stablecoins. They’re the only way to send $10,000 to a friend anywhere in the world via smartphone in seconds, for less than a penny. That’s because they bypass intermediaries like Western Union, PayPal, and banks.
Stablecoin adoption is rising fast. The total value of stablecoins in circulation has reached $250 billion—more than the physical cash supply of the Canadian dollar or British pound. Stablecoins are tokenized dollars. Next, all real-world assets—stocks, bonds, real estate, barrels of oil, and artwork—will go on-chain. The total value of real-world assets globally is estimated at over $250 trillion. That’s the scale of the market opportunity.
Wall Street is at the forefront of tokenization. BlackRock, the world’s largest asset manager, recently launched a tokenized U.S. Treasury fund. Another Wall Street giant, Franklin Templeton, did the same with its money market fund. Robinhood has started offering European users tokenized shares in private startups like OpenAI and SpaceX. JPMorgan, UBS, Visa, BNY Mellon, PayPal… hardly a single Wall Street firm isn’t migrating to blockchain. Even city-states are joining in—Dubai recently tokenized an entire building.
The current financial infrastructure, unchanged for decades, processes trillions daily. Imagine the momentum crypto will gain when those massive flows begin moving on blockchain—and how much money firms like BlackRock will save by cutting out middlemen.
The Best Way to Profit From the First Phase of Tokenization Is…
Investing in high-quality crypto businesses building the plumbing for the new financial system. Think back to the best way to profit from the AI boom over the past three years: buying infrastructure providers like Nvidia (NVDA). It’s the same in crypto.
Most tokenized assets—from stocks to tokenized Treasuries to stablecoins—run on Ethereum (ETH). BlackRock, Robinhood, Visa, PayPal, Stripe, and JPMorgan are all building on Ethereum. Ethereum is rapidly becoming the settlement layer for the blockchain-based financial system. As more assets go on-chain, Ethereum will earn more fees, driving up its price.
I like to think of Ethereum as crypto’s “Nvidia”—the biggest winner in phase one construction and a must-own asset. But it won’t be the only winner. A new class of emerging, smaller, faster, and more specialized protocols designed specifically for tokenization is rising. Some focus on tokenized Treasuries, others are built to custody real-world assets like real estate, and some are redefining lending and borrowing. These projects are tiny now—akin to “nano-cap” stocks. But as Wall Street capital floods in, these platforms have the potential to outperform even the largest cryptocurrencies.
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