PANews reported on September 20 that according to The Block, major cryptocurrencies have risen since the Federal Reserve announced on Wednesday that it would cut the federal funds rate by 50 basis points. If this market recovery evolves into a sustained bull market, analysts predict that Ethereum's on-chain activity will rise sharply. Jasper De Maere, head of research at Outlier Ventures, said that as market conditions improve, Ethereum's on-chain activity may increase significantly, and this activity is mainly driven by speculation and increased participation in decentralized applications. De Maere said: "As the market fluctuates, we will see a surge in Ethereum on-chain activity, so there is obviously speculation, and then dApp activity drives on-chain activity. I would say this will still be driven by speculation. dApp activity will be maintained through airdrops, as many companies will hold token generation events (TGE) and enter the mainnet"
De Maere noted that there is currently quite a bit of pent-up demand for projects looking to launch on Ethereum — suggesting that as market conditions improve, a wave of new products could emerge, driving activity across various cryptocurrency sectors. On the possibility of renewed adoption of the Ethereum network following the Fed’s rate cut, De Maere highlighted DeFi as an area poised for growth. “Smart money operating on-chain will move back into DeFi, which could be a positive for Ethereum,” he said. De Maere stressed that there is a positive correlation between rate cuts, market activity, and ultimately speculation. “Real product adoption is separate from market activity,” he added. “While financial incentives can drive short-term adoption of Ethereum, the real stickiness comes from the functionality of the product, not from the desire for financial gain.”
He also noted that one potential consequence of the Fed’s expected further rate cuts, improved liquidity, and stronger risk appetite is that the adoption of tokenized real-world assets (RWAs) could slow down, primarily because most tokenization occurs in yield-bearing assets, such as U.S. Treasuries.
