Ethereum’s Stablecoin Play: ETHZilla’s Big Bet

What to Know:

• ETHZilla, a former biotech firm, now boasts the eighth-largest public Ethereum treasury in the world.
• The company plans to leverage layer-2 protocols for higher yields and to build a cash-flow generating protocol business.
• CEO McAndrew Rudisill envisions ETHZilla as a bridge between traditional and digital finance.

ETHZilla’s CEO McAndrew Rudisill has declared his unwavering belief in Ethereum’s potential, especially in the trillion-dollar global remittance market, and has transformed his biotechnology firm into a leading player in the crypto market.

ETHZilla Corporation, born out of Life Sciences Corp, a biotech firm listed on Nasdaq, has emerged as the world’s eighth-largest public Ethereum treasury, holding over 102,000 tokens. This dramatic pivot occurred shortly after the US President Donald Trump signed the GENIUS Act, a legislation aimed at laying down the rules for stablecoins.

Rudisill sees Ethereum as a global monetary gateway allowing transmissions in US dollars. He also notes the many real-world applications Ethereum can serve and its function as a store of value. The company chose Ethereum as its focus because, according to Rudisill, the “race is on” to determine the leading blockchain, and Ethereum has already made significant strides.

The largest Ether treasury company, BitMine Immersion Technologies, holds a whopping 2.65 million tokens, valued at over $11 billion, and is aiming to hold 5% of the token supply. ETHZilla, on the other hand, doesn’t settle for a specific number but aims to acquire “as much Ether as possible.” The company plans to utilize various layer-2 protocols to generate a “substantially higher yield” than regular staking.

Rudisill intends to reinvest the cash from the Ether into buying more and expanding the layer-2 network, which he believes will boost Ethereum’s expansion. He envisions ETHZilla as a bridge between traditional finance and digital finance, and having a significant amount of Ethereum will enable the company to fulfill that role.

Ether, which is trading at $4,148, has fluctuated between $3,846 and $4,226 over the past week. However, Rudisill predicts Ether could reach $20,000 in a few years due to stablecoin growth and years of price consolidation. He believes the price could break out once it crosses the $5,000 mark.

Ether treasury companies hold approximately 5.5 million Ether, about 4.54% of the token supply. Rudisill anticipates more companies will join the fray, but he expresses skepticism about their long-term survival due to disparities in quality, management, and business models.

ETHZilla has seen a 44% gain year-to-date since its pivot into crypto, with its best performance in August when the stock price soared to $10.70. Rudisill asserts that ETHZilla is more than just a crypto treasury play, emphasizing that it’s building a cash-flow generating layer-2 protocol business with over $1 billion in assets. He underscores the company’s focus on long-term technology development and utility, saying the rebrand and pivot reflect a clear strategy for growth and innovation.

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