Tracy Jin Exposes Shocking Ethereum Network Centralization Trends: 70% of Tokenized Assets at Risk!

Leading blockchain for asset tokenization, the Ethereum network drives more than 70% of tokenized real-world assets (RWAs). Still, Tracy Jin of MEXC cautions that tokenization could become a danger of centralization, therefore flouting the foundational ideas of the Ethereum network. Could ETH’s dominance be at the price of decentralization if institutions are tokenizing valuables on Ethereum and permissioned chains? Restrictions, asset freezes, and compliance standards might reconfigure the Ethereum ecosystem. Let’s explore the hazards and market effects of tokenization on Ethereum’s value as ETH price trends react to the general market sentiment.

Ethereum’s Role in Asset Tokenisation and Market Impact

The Ethereum network has become the foundation of asset tokenization, enabling billions in tokenized RWAs. MEXC’s Tracy Jin of MEXC notes that an increasing worry is centralization. Although Ethereum’s open network makes decentralized finance (DeFi) possible, institutional tokenization initiatives frequently depend on authorized versions of Ethereum or regulated sidechains. This change might restrict ETH’s use as a distributed asset. One significant danger is control based on compliance. Just like USDC and other stablecoins have been blacklisted, tokenized assets could be subject to regulatory freezes. 

Stricter government oversight on tokenized RWAs might limit the Ethereum ecosystem’s permissionless character. From a cost viewpoint, Ethereum’s achievement in asset tokenization might be a double-edged sword. Although the adoption of cryptocurrencies can boost demand, concerns about growing centralization might dissuade long-term investors. ETH now trades at important support levels—which way its value would rise because of its use in tokenization or centralization issues would drag it down? Answering this question relies heavily on the next ETH price change. Let’s have a look at ETH price prediction to see how these developments impact the price of Ethereum.

ETH Price Prediction for March 31, 2025

On the 5-minute Ethereum (ETH/USDT) chart, price movement between strong support at 1,770 and resistance close to 1,850 is shown with an intermediate resistance at 1,810. Trading close to the lower support level, the price shows weakness after several rejections near resistance. A move towards resistance can be made if customers protect the support. A drop under 1,770 would suggest a more negative direction. The cost structure points to consolidation; a possible breakout would result should momentum strengthen in either direction.

Chart 1: Analysed by vallijat007, published on TradingView, March 31, 2025

With prior dips into the oversold territory under 30 causing temporary price recoveries, the RSI indicator sits at 44.92, reflecting only somewhat bearish momentum. Because the MACD line is under the signal line, which implies persistent selling pressure, the MACD indicator shows a bearish crossover. If the MACD changes positively, upward motion might follow. As the market stays inside range with breakout possibilities, traders should watch important levels and indicator swings to evaluate possible trend changes.

What’s Next for the Ethereum Network? Key Levels to Watch

Since the Ethereum network is driving asset tokenization, its decentralization has become doubtful. Institutional acceptance fosters development, but permissive chains might handicap ETH’s part in free finance. If regulatory control rises, the Ethereum ecosystem could run out of stablecoins. For merchants, ETH’s next move will be dependent on whether it remains decentralized or shifts toward controlled ecosystems. Confidence could be strengthened by a breakout above important resistance, but growing centralization danger might weigh on long-term value. Is a change in RWAs unavoidable from Ethereum’s present basis?