Ethereum remains the cornerstone of the decentralized finance (DeFi) ecosystem in 2025, commanding approximately 70% of the total smart contract market despite the rise of alternative blockchain platforms. Its dominance is underscored by a total value locked (TVL) in DeFi protocols around $166 billion, representing about 60% of the entire DeFi market. While other blockchains like Solana and Tron have gained ground, Ethereum's comprehensive infrastructure, active developer community, and broad adoption give it a clear edge in processing capacity, transaction volumes, and ecosystem robustness. Ethereum processes roughly 1.7 to 1.8 million transactions daily, maintaining strong demand even as Layer-2 solutions handle around 60% of transaction volume to reduce costs. This balance of scalability and decentralization keeps Ethereum at the forefront of the DeFi revolution.

Ethereum's Core Value Propositions

Ethereum's core value propositions extend well beyond sheer market share. The network's transition to a Proof-of-Stake (PoS) consensus mechanism has been pivotal, enabling ETH holders to stake their tokens and earn passive income while simultaneously securing the network. Over 438 million users participate in Ethereum's ecosystem, reflecting its extensive reach and utility. This shift to PoS has decreased energy consumption dramatically and improved network security. Ethereum also serves as the foundational infrastructure for a diverse range of decentralized applications (dApps), creating a self-reinforcing ecosystem where security, liquidity, and innovation feed into one another. These strengths contribute to Ethereum's intrinsic value and long-term sustainability, attracting developers, institutions, and retail users alike.

Evolution of Ethereum Staking

The distribution of Ethereum staking has evolved significantly, moving from a largely centralized model to a more decentralized framework. Currently, centralized platforms like MEXC manage about 25% of all staked ETH, providing accessible staking services to users. However, decentralized staking protocols are gaining momentum, driven by the community's preference for reducing custodial risk and increasing network resilience. This transition is expected to accelerate with upcoming network upgrades such as the Pectra upgrade, which is anticipated to enhance staking functionalities and attract greater institutional interest, including increased participation from Exchange-Traded Funds (ETFs). Additionally, evolving regulatory frameworks are shaping how staking services operate, promoting transparency and compliance without undermining decentralization.

Frequently Asked Questions about Ethereum

Frequently asked questions about Ethereum often focus on its long-term investment viability, price outlook, and current market metrics. Ethereum's reputation as a leading blockchain with broad adoption and continuous technological improvements supports its status as a strong long-term investment. Price projections through 2030 remain optimistic, given Ethereum's role in powering DeFi, NFTs, and Web3 applications, alongside ongoing scalability upgrades like rollups and danksharding. As of late 2025, ETH trades near all-time highs, backed by increasing institutional adoption and a robust ecosystem. Current ETH-to-USD conversion rates fluctuate with market conditions but reflect steady demand and liquidity, supported by significant trading volumes on MEXC. These factors collectively affirm Ethereum's position as a fundamental asset in the evolving digital economy.

Summary

In summary, Ethereum's dominant position in the DeFi ecosystem is reinforced by its technological advancements, broad user base, and evolving staking landscape. The network's transition to Proof-of-Stake, combined with Layer-2 scalability solutions and upcoming upgrades, ensures it remains competitive against emerging blockchains. Centralized platforms like MEXC play a crucial role in facilitating accessible staking, while decentralized protocols continue to gain traction, highlighting a healthy shift toward greater decentralization. Ethereum's intrinsic value, driven by its extensive smart contract ecosystem and institutional interest, underscores its significance not just as a cryptocurrency but as a foundational infrastructure for the future of decentralized finance.

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From DeFi infrastructure to RWA leader, how has Ondo seized every market opportunity?

From DeFi infrastructure to RWA leader, how has Ondo seized every market opportunity?

Deng Tong, Jinse Finance On December 9, 2025, Ondo Finance announced that the U.S. Securities and Exchange Commission's confidential investigation into Ondo had concluded without bringing any charges. "This investigation aimed to examine whether Ondo's tokenization of certain real-world assets complied with federal securities laws, and whether ONDO tokens were securities." I. Original post from Ondo Finance's official blog The United States has taken a significant step towards tokenized securities. Ondo Finance has received formal notification that a long-running, secret investigation by the U.S. Securities and Exchange Commission (SEC) launched during the Biden administration to scrutinize digital asset companies has concluded without any charges being brought. This investigation aims to examine whether Ondo's tokenization of certain real-world assets complies with federal securities laws and whether ONDO tokens are securities. Ondo has fully cooperated with the investigation. Ondo firmly believes that regulated and transparent tokenization models like Ondo's not only meet investor protection principles but also strengthen them. This moment is a significant milestone not only for Ondo, but also for the entire tokenization industry. When the investigation began in 2024, the regulatory environment for digital assets in the United States was cautious, chaotic, and occasionally prone to over-enforcement. It was against this backdrop that Ondo: The first and largest tokenization platform for US Treasury bonds; One of the few companies focused on large-scale tokenization of publicly traded stocks; It quickly gained favor with global investors. Those who start early and achieve success will naturally be scrutinized. Amidst the collapse of cryptocurrency exchanges and the proliferation of speculative tokens in policy discussions, Ondo is leveraging public blockchains to build practical, user-friendly, and regulated financial products. As a result, these innovators, dedicated to developing the safest assets in traditional finance, find themselves embroiled in broader law enforcement actions. Ondo's growth and leading position in the emerging tokenization field have brought us into focus, but they are not a reasonable target of this investigation. As the investigation concludes, we will continue to uphold our consistent principles and remain firmly committed to innovation, compliance, security, and investor protection. A Shift in the Washington Situation: The Path to Tokenized Securities Becomes Clearer This decision also reflects a broader shift in U.S. policy. Regulators are reassessing Biden-era policies on digital assets. Washington has begun to reverse or moderate some of the aggressive measures taken by the previous administration, recognizing that innovation and investor protection are not mutually exclusive. Tokenization is now officially on the agenda of the U.S. Securities and Exchange Commission (SEC). The SEC's Investor Advisory Committee is assessing how tokenization can revolutionize the issuance, trading, and settlement processes of publicly traded stocks, a stark contrast to the SEC's enforcement-first stance in recent years. The market has already provided the answer: the adoption of tokenization technology is accelerating. Tokenization of US Treasury bonds has become one of the fastest-growing on-chain asset classes, while the recently launched tokenization of stocks is also showing strong growth momentum. The U.S. infrastructure is constantly evolving to support tokenization. Ondo's recent acquisition of Oasis Pro has given it a broker-dealer, alternative trading system (ATS), and transfer agent licenses, giving it a fully regulated business foundation in the U.S. tokenized securities space. The resolution of the SEC investigation marks the end of one chapter and the beginning of another for Ondo. 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LaaS allows projects to increase the liquidity of their tokens on decentralized exchanges. Projects can deposit their tokens into Ondo's liquidity vault, and Fei will match them with an equivalent value of the FEI stablecoin. Ondo expanded its LaaS service through the following partnerships: In December 2021, Ondo partnered with Frax Finance to expand its LaaS product, with Frax Finance using its FRAX stablecoin to provide liquidity for tokens such as AMP. In May 2022, Ondo partnered with Angle Protocol to expand its LaaS offerings, with Angle Protocol using its agEUR stablecoin to provide liquidity for tokens such as PAL. It is worth noting that Ondo V1 has ceased service, and from March 5, 2024, users can only withdraw funds from it. Ondo V2: Becoming a Core Player of RWA Ondo V2 was officially launched in January 2023, and is the second implementation of this protocol. 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The adoption of this proposal marked the "public offering" of ONDO tokens. In January 2024, the Ondo Foundation announced the Ondo Points program and launched the “first wave” of the program later that month. In February 2024, Ondo announced its plans for Ondo Global Markets (Ondo GM), a platform that will allow users to access traditional securities on-chain through tokenization. In March 2024, Ondo Finance launched 24/7/365 instant subscription and redemption services for OUSG, and a large portion of OUSG's assets were transferred to BlackRock's BUIDL Treasury Fund. In February 2025, Ondo Global Markets officially launched. The announcement stated that the tokens issued by Ondo GM would be backed 1:1 by the underlying assets. In March 2025, TVL reached $1 billion, thanks to compliance-first customer acquisition, the partnership with BitGo, and smart contracts that comply with US regulations. In June 2025, the team announced the formation of the Global Markets Consortium, which aims to "harmonize industry standards and promote the interoperability of tokenized securities." Members include the Solana Foundation, Bitget Wallet, Jupiter, Trust Wallet, Rainbow Wallet, BitGo, Fireblocks, 1inch, and Alpaca. In October 2025, Ondo submitted a letter to the U.S. Securities and Exchange Commission proposing to amend Nasdaq's rules on trading tokenized securities. III. Ondo's Secret: Seizing Every Market Opportunity Looking at the timeline above, from DeFi to RWA, and now to the SEC ending its investigation, Ondo has seized every market opportunity, which may be the secret to its continued popularity. In June 2020, the DeFi Summer erupted, with Compound launching its governance token COMP and initiating a liquidity mining mechanism—users could earn COMP token rewards by lending and borrowing on the Compound platform. 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It then returns the assets to the project, pays the pre-agreed fixed interest to the partners, and returns any remaining profits to the project. At this time, Ondo was a DeFi infrastructure provider that solved the unsustainability problem caused by liquidity mining. In 2022, Terra's algorithmic stablecoin UST and its native token LUNA experienced a death spiral collapse, triggering a DeFi trust crisis overnight. Against this backdrop, Ondo turned its attention to the RWA track, which was then truly emerging and entering a phase of rapid development. In 2023, Ondo V2 was launched, with its core product being tokenized U.S. Treasury bonds (OUSG). OUSG's underlying asset is the iShares Short-Term U.S. Treasury ETF from BlackRock, ensuring both security and liquidity, thus giving OUSG a low-risk profile. OUSG can be integrated with DeFi protocols such as Flux Finance that support compliant, licensed assets. After acquiring the tokens, investors can transfer ownership between each other and engage in lending and other financial activities through compliant smart contracts. The launch of OUSG demonstrates the feasibility of tokenizing low-risk traditional financial assets. The SEC, led by Gensler, has frequently targeted the crypto market. Two years ago, the crypto industry experienced a regulatory "winter," and in October 2023, the SEC launched an investigation into Ondo. The SEC's core focus was whether Ondo's tokenization process of its U.S. Treasury products complied with securities regulations, and whether the ONDO token should be considered a security. This investigation lasted for two years. On October 6, 2025, Ondo Finance completed the acquisition of Oasis Pro, an SEC-licensed brokerage firm. This acquisition aimed to help Ondo advance its tokenized securities business within a compliant framework. On December 6, Ondo submitted its tokenized securities roadmap to the SEC, advocating for support for multiple asset ownership models and promoting broader on-chain integration to help the United States maintain its leading position in the asset tokenization transformation. Following its compliance efforts, Ondo has not faced any charges, a significant regulatory boon for the crypto industry. Conclusion From DeFi to RWA, and then to compliant development, Ondo has accurately grasped industry trends and seized every opportunity brought by emerging trends. Now that the SEC investigation has concluded, Ondo is completely free of constraints. Where will Ondo set its sights in the future? Perhaps the New York Summit in February 2026 will provide us with an opportunity to find out.
2025/12/10
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