Will 2026 be a turning point for Ethereum? Recently, I've seen some discussions about crypto-native banking, which is truly eye-opening.

From institutional entry into digital asset vaults last year to the potential mainstream adoption of Ethereum this year, this storyline looks quite interesting. Imagine, ordinary people not needing to bother with private keys, not needing to calculate Gas fees, and not having to research cross-chain bridges, but still earning a steady 4-5% on-chain yield—how tempting is that? Compared to the almost zero fixed deposit rates at traditional banks, this is a whole different level.

Ultimately, the real drivers are demand and returns. Those complex technical details hold no appeal for ordinary users, but a stable 4-5% return definitely does. The key is to make the user experience as simple as using Alipay—this is the right way for DeFi to scale to mass adoption.

If this logic holds, what might the future look like? Institutions could meet enterprise-level needs through digital asset vaults, while individuals satisfy daily financial needs with new banking products. Once these two lines form a closed loop, the inflow of funds could become continuous.

From a market perspective, several directions are worth paying attention to. First, the amount of staked Ethereum will continue to grow, increasing network security. Second, Layer 2 transaction activity will further explode as many users shift their trading to L2. Third, stablecoins, especially those within the Ethereum ecosystem, may experience a wave of growth.

But reality also needs to be clear. Regulatory hurdles are unavoidable, and different countries have varying attitudes toward these crypto banks. Whether they are classified as banks or DeFi protocols is still up for debate. Additionally, how long the 4-5% returns can be sustained depends on the overall market yield environment—this is not a fixed situation.

Focus should be on institutional services and liquidity staking projects within the Ethereum ecosystem, as these are likely the most immediate beneficiaries. But don’t forget, this is still a brand-new narrative, and market volatility could be intense. It’s advisable to start with small positions and explore gradually, rather than going all-in.

It’s clear that Ethereum is gradually transforming from an investment vehicle into a financial tool. If this transition can truly succeed, the potential for a revaluation of its value could surpass what many currently imagine. 2026 is worth looking forward to, but we must stay alert.