After a few weeks off, Web3 Thoughts of the Week returns with commentary on Ethereum, Bitcoin and the impacts from Venezuela.
“While some myopic pundits are hyper-focused on the price of ETH, they are missing the huge institutional adoption cementing Ethereum as the new king of crypto.
“Over Christmas, stablecoin issuance on Ethereum surpassed $59 billion, placing the chain well ahead of any other as it has gobbled up over 62% of the market.
“Meanwhile, Ethereum is the only chain of note in the tokenized asset sector, which is, perhaps, the only crypto asset class to have seen exponential growth in 2025 (over 220%). Ethereum hosts $12.5 billion in tokenized assets, giving the chain over 65% share of the entire market. The closest competitor is BNB Chain with a measly $2 billion, while both Solana and Arbitrum host less than $1 billion of tokenized assets each.
“Indeed, over the festive period, we saw tokenized gold alone surpass $4 billion on Ethereum, up from just $1 billion at the beginning of the year. The huge gold rush we are seeing in tokenized gold is happening almost exclusively on Ethereum, and with central banks and investors scrambling to get in any way they can, this growth is going in only one direction.
“Meanwhile, while people might be down on the price of ETH, the flows tell a different story. Whereas inflows into Bitcoin halved this year compared to 2024, flows into ETH doubled. A recent study from State Street also shows 6% of institutions holding digital assets hold more than 5% in ETH, compared to just 5% holding above this level in Bitcoin. The data also shows three times as many asset managers as retail owners holding ETH, compared to two times as many managers as owners in Bitcoin.
“And to top this off, we have a report from Artemis showing that business-to-business (B2B) payments on Ethereum spiked by 157% last year, with the size of B2B payments increasing by 45% and accounting for the lion’s share of transaction value on the chain.
“In short, anybody still betting on Bitcoin as a growth asset for 2026 will likely be blindsided by the massive growth we are going to see on Ethereum, fuelled by stablecoins, tokenization and payments, all of which institutions are soaking up as if there were no tomorrow.”
– Kevin Rusher, founder of RAAC
“As the first Monday of 2026 gets underway, gold, silver and Bitcoin are all moving in the same direction. It would be tempting to label this a ‘risk-off’ or dollar debasement trade and predict that Bitcoin and gold are converging – but this isn’t what’s happening here.
“In fact, Bitcoin and precious metals are being driven by very different forces. Gold and silver are extending last year’s momentum, which stalled somewhat at the end of the year, providing investors on the sidelines with an entry point.
“Bitcoin, meanwhile, was so oversold at the end of last year that we’re now seeing a reflexive bounce. Friday – the first full ETF trading day of 2026 – saw $471.3 million of inflows into Bitcoin ETFs, suggesting institutions are piling back in. We’re seeing more of the same today as investors come back to their desks after the festive season.
“But this doesn’t mean that Bitcoin and gold are converging, or that Bitcoin will now rally every time geopolitical tensions escalate. For now, it’s a simple coincidence.”
– Nic Puckrin, investment analyst and co-founder of the Coin Bureau
“Events in Venezuela have once again underscored a fundamental truth about today’s markets: political risk is now priced not just in equities and bonds, but in digital assets as well. When geopolitical tensions increase and questions arise about sanctions, capital controls, or currency stability, investors instinctively seek assets that are portable, liquid, and free of any single government’s control. Bitcoin is increasingly fulfilling that role.
“The speed and scale of the reaction in crypto markets — particularly Bitcoin — highlights how this asset class has matured. Unlike stocks or bonds, which trade only during set hours, Bitcoin’s 24/7 market structure allows investors to respond in real time to geopolitical shocks. This makes Bitcoin not just a speculative instrument, but a dynamic tool in capital allocation when political uncertainty spikes.
“What began in Venezuela as a grassroots response to economic hardship is now being recognized by global investors for the same reasons. Independence from central banks, resistance to censorship, and global liquidity are no longer niche attributes. They’re increasingly viewed as essential features in a world where geopolitical risk is becoming more persistent.
“Bitcoin has become one of the first places investors go to express a view on global uncertainty. That was visible again after the latest developments around Venezuela. While traditional markets were still digesting the implications, crypto markets were already repricing risk.
“Gold has long been the classic hedge against political risk. Bitcoin is increasingly being discussed in the same breath, especially by a new generation of investors who are comfortable with digital assets and somewhat more sceptical of centralized systems.
“The implications of Venezuela go far beyond one country. They speak to a world where political risk is becoming more persistent and more unpredictable.
“Bitcoin has already benefited from this shift, as the recent price action shows, and it is likely to remain a key beneficiary as investors continue to rethink how they protect and position their capital.”
– Nigel Green, CEO, deVere Group