Ethereum’s Systemic Importance Highlighted in Central Bank Stress Test

The Bank of Italy has published a significant technical analysis paper exploring a severe hypothetical scenario: the collapse of Ethereum's native token, ETH, to zero value. Authored by economist Claudia Biancotti, this 11-page document treats such an event not merely as a catastrophic price movement but as a comprehensive stress test on the underlying blockchain infrastructure itself. This represents a notable evolution in how central banks are approaching cryptocurrency risk assessment, moving beyond simple market volatility concerns to examine systemic technological dependencies. Permissionless blockchains like ethereum have evolved into foundational settlement layers for a vast ecosystem encompassing thousands of tokens, decentralized finance (DeFi) protocols, smart contracts, and non-fungible tokens (NFTs). The Bank of Italy's paper warns that a collapse of ETH—which is essential for paying transaction fees (gas) and securing the network via staking—could trigger a cascading failure across this entire digital ecosystem. The analysis suggests that the failure of a core crypto-asset could paralyze the blockchain's operational functionality, preventing the execution of smart contracts and the transfer of any assets built atop it, leading to a total freeze of on-chain economic activity. This simulation underscores Ethereum's critical role as a piece of public financial infrastructure. The central bank's focus on infrastructure resilience, rather than just investor losses, marks a sophisticated recognition of blockchain technology's integration into the broader financial system. It implies that regulators are increasingly concerned about contagion risk, where trouble in the crypto sector could spill over into traditional finance through interconnected channels and institutional exposure. For long-term bullish practitioners, this analysis, while outlining a worst-case scenario, inadvertently validates Ethereum's systemic importance. The very fact that a major central bank is dedicating resources to model its potential collapse signals that Ethereum is no longer seen as a niche experiment but as a systemically relevant platform whose stability warrants serious scrutiny at the highest levels of traditional finance.

Bank of Italy Warns of Ethereum Collapse Scenario in Crisis Simulation

The Bank of Italy has conducted a technical analysis exploring the catastrophic consequences of Ethereum's native token, ETH, collapsing to zero. Authored by Claudia Biancotti, the 11-page paper treats this scenario as a stress test on blockchain infrastructure rather than just asset prices.

Permissionless blockchains like Ethereum serve as settlement systems for countless tokens and contracts. The paper warns that if ETH loses most of its value persistently, validators—who are compensated in ETH—may abandon the network. This exodus could cripple transaction settlement, potentially halting it entirely.

Tokenized securities and fully backed stablecoins relying on Ethereum's infrastructure could face severe mobility and security risks if validator participation dwindles. The analysis frames this as a systemic threat to blockchain-based financial systems.

Standard Chartered Projects Ethereum to Reach $7,500 by 2026, $40,000 by 2030

Ethereum is poised for a significant rally, with Standard Chartered forecasting a new all-time high of $7,500 by 2026. Analyst Geoffrey Kendrick projects a 140% surge from current levels, followed by even more aggressive targets of $30,000 by 2029 and $40,000 by 2030—a potential 1,180% appreciation.

The bank's revised outlook comes despite Ethereum's 37% decline from its August 2025 peak of $4,946. Recent market fragility has seen ETH dip 2.9% weekly, though it maintains modest 14-day gains of 6.3%.

Standard Chartered's analysis suggests institutional confidence in Ethereum's long-term value proposition, even as the broader crypto market struggles to find footing. The $40,000 end-of-decade target implies Ethereum could outperform traditional asset classes by an order of magnitude.

Crypto Exploits Surge to Record $4B in 2025 as Hacks Target Exchanges and DeFi

The cryptocurrency sector suffered a historic wave of exploits in 2025, with losses exceeding $4 billion—a 34% increase from the previous year. Attacks evolved from brute-force hacks to sophisticated assaults on systemic vulnerabilities in centralized exchanges and smart contracts. The Bybit breach alone accounted for $1.4 billion, predominantly in Ethereum thefts.

North Korean hackers dominated Web3 exploits, claiming 52% of stolen funds according to Hacken. DeFi protocols faced escalating attacks in the latter half of 2025, particularly against new decentralized exchanges. Unlike prior years, bridge exploits diminished as their ecosystem role faded.

Recovery efforts stalled, with only $334.9 million frozen—a 31% drop from 2024. The figures underscore a paradox: as institutional adoption grows, so does the sophistication of theft vectors.

Bitmine’s Billion-Dollar Ethereum Bet Takes Flight

Bitmine Immersion Technologies has emerged as a dominant force in Ethereum accumulation, amassing 4.17 million ETH—3.45% of circulating supply—in a matter of months. The publicly traded firm now stands as the world’s largest fresh-money buyer of ETH, with its aggressive staking strategy drawing market attention.

The company has staked 1.2 million ETH worth $3.9 billion, signaling strong conviction in Ethereum’s long-term value proposition. This positions Bitmine 70% toward its ambitious "Alchemy of 5%" target to control 5% of all ETH in circulation. Under CEO Tom Lee’s leadership, the MOVE transcends passive yield generation, with plans to launch undisclosed active ETH utilization strategies.