Ronin, a purpose-built blockchain for gaming, said it will migrate back to the Ethereum ecosystem as a layer-2 network, making Ronin a general-purpose chain for applications beyond gaming.
The blockchain originally spun off from the Ethereum mainnet in 2021 in search of better network speeds and cheaper transaction fees for Axie Infinity, a non-fungible token (NFT) blockchain video game. The Ronin team wrote:
“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 team set a Q2 2026 target for the full migration from being a standalone layer-1 blockchain to an Ethereum layer-2 network.
“Ethereum is winning the war for Wall Street’s attention and capital,” according to Ronin, which cited the growing ties between institutional investors and Ethereum as a main driver for the decision to migrate back to the Ethereum ecosystem.
Related: Ethereum hits new multiyear high as Tom Lee’s BitMine plans $20B ETH raise
Ethereum becomes Wall Street darling in institutionalization push
Etherealize, a marketing company established to pitch Ethereum to Wall Street investors, launched in January with backing and funding from the Ethereum Foundation.
Since that time, several Ethereum treasury companies have emerged as publicly traded businesses that accumulate Ether (ETH) on their balance sheets, and the price of Ether hit a recent high of about $4,790.
Matt Hougan, chief investment officer at investment company Bitwise, told Cointelegraph that Ether treasury companies create a cohesive narrative for Ethereum that appeals to traditional financial investors.
Putting ETH into an “equity wrapper” that accrues yield through staking provides investors with a vehicle they are familiar with and feel comfortable investing in, Hougan said.
Proponents of the Ethereum treasury strategy say that the network will become the backbone of a new financial system, acting as a base layer for decentralized finance (DeFi), real-world asset tokenization, and stablecoin settlement.
The prohibition of yield-bearing stablecoins in the US, stipulated in the recently passed GENIUS bill, will drive investors to Ethereum DeFi, where they can stake or earn passive income through lending activities, according to analysts.
Magazine: How Ethereum treasury companies could spark ‘DeFi Summer 2.0’