Ethereum’s Midlife Crisis? 😱

Oh. My. God. It seems the financial institutions are having a moment with Ethereum (ETH). And it’s not a good one. They’re basically ghosting it for, like, purpose-built blockchains. It’s a whole thing. 🙄

Klarna launching a stablecoin elsewhere and this Canton thing… seriously raising eyebrows. Is Ethereum losing its cool vibe? One is forced to ponder.

Is Ethereum Officially Over? (The banks are talking…)

So, on November 25th, Klarna decided to launch KlarnaUSD on Tempo (Stripe and Paradigm’s baby). Apparently, it’s a massive blow to Ethereum’s ego. Like when your date shows up wearing something completely different than you suggested.

“Someone tell me why this isn’t bearish for Ethereum? A major fintech with a big move into stablecoins is not launching it on Ethereum. If Tempo didn’t exist then this would have likely launched on Ethereum or an ETH L2…Tempo taking marketshare in what is the main thesis for Ethereum: stablecoins,” an analyst stated.

Ethereum hosts these massive stablecoins, like Tether and USDC (over $100 billion, casually!), and they keep the whole ecosystem afloat. But Klarna decided to skip the party and go somewhere else? The drama! It means less liquidity, less buzz, basically less everything Ethereum wants. It’s like being left on read.

Zach Rynes put it so bluntly: these corporate blockchains are thriving while public chains are getting utterly… steamrolled. 🤣 Harsh, but you do you, Zach.

“Another confirmation that corpo L1 chains are here to stay and that your favorite commoditized ‘neutral’ public chain #375936 is getting steamrolled by Fintech yet again,” he said.

And then there’s Canton. It’s all about privacy – institutions can choose who sees what. Apparently, the idea of everyone knowing your business is a bit of a downer when you’re moving, oh, billions of dollars around. Like forgetting to lock your diary as a teenager.

Goldman Sachs is already on board with Canton, which is, well, intimidating. And get this: Canton is apparently super efficient, producing $96 of value for every $1 of market cap. Ethereum? A measly $0.03. The injustice!

But why are they running away? Privacy, darling, privacy. Turns out, transparency isn’t always a virtue, especially when you’re a massive institution. With Ethereum, everything is public, forever. It’s a bit… exposed, don’t you think?

If you’re casually transferring vast sums of money, you don’t want everyone knowing your business. Competitors, front-running, accidentally revealing your secret plans… the horror! It’s a corporate social nightmare.

Apparently, enterprises are realising that this blockchain transparency thing is actually a liability. And there are laws, like GDPR, that frown upon revealing all your secrets to the world. Who knew?

So, it’s looking like a split. Ethereum for the, shall we say, interesting people, while institutions prefer their blockchains private and discreet. It’s a whole class thing, really. Whether Ethereum can claw its way back or these specialized chains take over… honestly, who even knows anymore? 🤷‍♀️ It’s all just so… complicated.

2025-11-26 08:17

Is Ethereum Officially Over? (The banks are talking…)

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