A new analysis suggests that Ethereum (ETH) is becoming the core infrastructure of the digital economy. It is noted that the spread of dollar demand centered on stablecoins is elevating Ethereum's status to a level comparable to US Treasury bonds. In particular, as accessibility to digital dollars increases in developing countries, there is a forecast that the Ethereum-based financial ecosystem will emerge as a key axis in the global economy.
Maria Shen, General Partner at Electric Capital, emphasized, "Stablecoins are spreading dollars faster than any financial technology in history" and "Ethereum is becoming the 'financial backbone' operating behind this digital finance." This analysis was presented through a report commemorating Ethereum's 10th anniversary.
With the full-scale circulation of dollars through stablecoins, billions of users worldwide can now directly hold digital dollars, bypassing the existing financial system. According to the report, the total market capitalization of stablecoins currently exceeds $260 billion, providing liquidity and accessibility that the traditional financial system could not offer.
However, users are demanding more than just holding digital cash, seeking opportunities for returns, investments, and comprehensive financial services. The existing banking system finds it difficult to meet these demands due to regulations, geographical constraints, and infrastructure limitations, and analysis suggests that Ethereum is filling this gap.
The report stated, "Ethereum is the only platform with global accessibility, institutional-grade security, and censorship resistance" and "Ethereum functions as the settlement layer for a $140 billion on-chain economy, including stablecoins, asset-backed tokens, and decentralized finance (DeFi)." Additionally, Ethereum contains $60 billion in DeFi assets, which serve as the foundation for various financial services.
This structure suggests that Ethereum could be used as a trust-based asset in the blockchain-based digital dollar economy, similar to government bonds or gold. The expanded use of stablecoins is structurally directly linked to increased ETH demand. As DeFi collateral, ETH staking for network security, and institutional investment expand, a virtuous cycle can be formed where supply decreases and value increases.
The competitive landscape is also clear. Bitcoin (BTC) has limitations for financial use in terms of programmability and difficulty, and other blockchains are deemed insufficient in terms of security, decentralization, and trust with institutional systems. Moreover, existing financial systems cannot satisfy global demand due to physical location or residency requirements, making digital asset-based payments the only alternative.
Maria Shen stated, "We have positively viewed the possibility of programmable money since 2018, and at that time, we discussed Bitcoin's institutional potential" and "Now is the time to apply similar logic to Ethereum." This means Ethereum has completed preparations to establish itself as the financial infrastructure of a new digital dollar era.
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