Ether (ETH) is showing significant growth and becoming a key element in the digital economy, confirming its functions as both a reserve asset and a medium of exchange.
ETH as a Reserve Asset
According to a new report by Electric Capital, Ethereum is a leader in stablecoin issuance and settlement. Since 2020, stablecoin usage has increased by 60 times, now reaching over $200 billion. Ethereum dominates this segment, hosting more than 54% of all stablecoins. ETH provides mechanisms for collateral, settlement, and yield, comparable to Treasuries or gold in traditional finance.
ETH as a Store of Value
Fidelity's report emphasizes that Ethereum is better understood as a sovereign digital economy rather than a Web2 platform. ETH acts as base money, coordinating decentralized participants. Activity metrics show a consistent increase on Ethereum: daily active wallets now exceed 2.5 million, with transaction counts reaching an all-time high of around 19 million.
ETH as Digital Oil
The 'digital oil' report argues that ETH functions as a productive, yield-bearing commodity in the on-chain economy. Ethereum is becoming the core settlement layer and security provider. Its supply is capped, and its roles as collateral and transaction fuel strengthen its market status.
Ethereum plays a vital role in the new digital economy, acting as a reserve asset, medium of exchange, and akin to digital oil. The growing institutional interest in ETH opens new opportunities for its growth and market application.
