Analysts Rebut 'Ethereum Liquidity Moat Breach' Theory: ETH Still Holds Reserve Asset Value, 36% of Supply Already Staked

BlockBeats news, October 10: Blockworks analyst Jake Koch-Gallup published a post rebutting the view that Ethereum is losing its liquidity moat, arguing that although ETH's value capture capability and stablecoin market share face scrutiny, its reserve asset properties, Layer 2 ecosystem, and degree of institutional adoption still constitute long-term competitive advantages.

In response to the issue of Ethereum's relatively low on-chain revenue, Jake pointed out that ETH's valuation depends not only on real economic value (REV), but also includes a reserve asset and collateral premium. ETH's current market capitalization is approximately 1,100 times its REV over the past 12 months. In addition, the development of Layer 2 networks such as Robinhood Chain and Base can still strengthen the Ethereum ecosystem, rather than meaning that capital and applications are completely leaving Ethereum.

Jake also pointed out that Ethereum currently accounts for about 65% of DeFi total value locked (TVL), about 45% of the on-chain RWA management scale, and spot ETFs and corporate treasuries together hold about 13% of ETH's total supply, while another about 36% of ETH's supply is staked. Although Ethereum's stablecoin market share has gradually faced dilution pressure from about 51%, Jake believes that as the stablecoin market as a whole expands, its absolute scale may still continue to grow.

However, Jake also acknowledged that if it relies only on ETH's reserve asset premium without sufficient revenue and value回流 mechanisms, the sustainability of its valuation remains controversial.