February 26, 2026
Stablecoins and tokenized assets are the megatrends driving adoption of public blockchains today. Growth in these use cases will most directly benefit smart contract platforms (e.g. ETH, SOL, SUI, BNB, AVAX, CC) and critical middleware technologies (e.g. LINK), in our view.
Bitcoin, the largest crypto asset by market cap, does not support stablecoins or tokenized assets (although they may be offered on Layer 2 networks over time). Bitcoin is a digital currency and digital payments system, not primarily a platform for applications. Like other currencies, demand for Bitcoin derives from its properties as a store of value (scarce and transparent supply) and as a medium of exchange (censorship-resistant digital payments).
But Bitcoin is the cornerstone asset of the crypto ecosystem. If stablecoins and tokenized assets demonstrate the power of blockchain technology, users and capital are very likely to be drawn to Bitcoin as well, in our view. In a market environment led by Ethereum, Solana, and other smart contract platforms, Bitcoin dominance could trend lower (see chart). But it is difficult to imagine a scenario where the crypto asset class grows significantly and the price of Bitcoin doesnât appreciate to some degree, in our view.
Key Takeaway: Bitcoin does not support stablecoins or tokenized assets, but we believe Bitcoin will likely benefit as those use cases demonstrate the power of blockchain technology.
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