Ronin, a blockchain specifically designed for gaming, has announced plans to transition back to the Ethereum ecosystem as a layer-2 network. This shift will transform Ronin into a versatile chain capable of supporting applications beyond gaming.
The Ronin blockchain initially diverged from the Ethereum mainnet in 2021 to provide improved network speeds and reduced transaction costs for Axie Infinity, a popular blockchain video game utilizing non-fungible tokens (NFTs). The Ronin team stated:
“Things are different now. Ethereum is back. Transaction costs and speeds are better than ever. We are early to a new era of growth, and Ronin is ready to rise.”
The transition to an Ethereum layer-2 network is set to be completed by the second quarter of 2026. Ronin’s migration will occur in two phases, as illustrated in the accompanying image.
Ronin cited Ethereum’s increasing appeal to institutional investors as a key factor for this strategic decision, stating that “Ethereum is winning the war for Wall Street’s attention and capital.”
Ethereum becomes Wall Street darling in institutionalization push
In January, Etherealize, a marketing firm aimed at promoting Ethereum to Wall Street investors, was launched with the support of the Ethereum Foundation. This initiative has catalyzed the emergence of several Ethereum treasury companies that integrate Ether (ETH) into their financial operations, contributing to Ether’s price reaching approximately $4,790.
Matt Hougan, the chief investment officer at Bitwise, commented to Cointelegraph that Ethereum treasury companies offer a compelling narrative for traditional financial investors. By placing ETH in an “equity wrapper” that generates yield through staking, these companies provide a familiar investment vehicle for traditional investors.
Advocates for the Ethereum treasury model argue that the network is poised to become the foundational layer of a new financial system, underpinning decentralized finance (DeFi), real-world asset tokenization, and stablecoin settlements.
The recent passage of the GENIUS bill in the United States, which prohibits yield-bearing stablecoins, is expected to redirect investors towards Ethereum DeFi. Here, they can earn passive income through staking or lending activities, as noted by analysts.
Magazine: How Ethereum treasury companies could spark ‘DeFi Summer 2.0’
For more information, visit the source article on Cointelegraph: https://cointelegraph.com/news/axie-infinity-ronin-coming-back-ethereum
