Analyst Claims Ethereum Still Holds Reserve Asset Value, 36% of Supply Staked

On October 10, Blockworks analyst Jake Koch-Gallup refuted the notion that Ethereum's liquidity moat has been breached, asserting that ETH's reserve asset properties, Layer 2 ecosystem, and institutional adoption still provide long-term competitive advantages. Jake pointed out that ETH's valuation is not only based on its actual economic value (REV) but also includes reserve asset and collateral premiums, with ETH's market cap currently about 1,100 times its REV over the past 12 months. The development of Layer 2 networks like Robinhood Chain and Base can strengthen the Ethereum ecosystem. Ethereum currently accounts for approximately 65% of the total value locked (TVL) in DeFi, with around 45% of the on-chain management scale in RWA, while spot ETFs and corporate treasuries collectively hold about 13% of the total ETH supply, with approximately 36% of ETH supply staked. Although Ethereum's stablecoin market share has faced dilution pressure, dropping from around 51%, Jake believes that the overall expansion of the stablecoin market may continue to grow its absolute scale. However, he also acknowledged that relying solely on ETH's reserve asset premium, without sufficient income and value return mechanisms, raises questions about the sustainability of its valuation.

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