Research Summary
The report discusses Ethereum’s unique position in the crypto ecosystem, arguing that it is the only institution-friendly smart contract chain. It highlights Ethereum’s advantages, including its regulatory acceptance, alignment with Coinbase, and real yield, which make it attractive for institutional adoption.
Key Takeaways
Ethereum’s Unique Advantages
- Ethereum’s Durability: The report emphasizes Ethereum’s durability and unreplicable advantages, including its status as the most Lindy smart contract chain, its regulatory acceptance, alignment with Coinbase, and the fact that it offers a yield. These factors make Ethereum ripe for institutional adoption.
- Regulatory Acceptance: Ethereum has crossed the regulatory chasm, with the CME listing an ETH futures contract. This has given regulators, notably the SEC, some level of comfort with trading around ETH that doesn’t exist for other cryptoassets like SOL.
- Alignment with Coinbase: Coinbase’s alignment with Ethereum is apparent through the Base rollup. This alignment makes Ethereum the perfect home for “compliant DeFi”, with over 100 million KYC’ed users from the most compliant US-based exchange ready to be funneled into Base.
- Real Yield: Thanks to the launch of EIP1559 in Aug 2021, and “the merge” in Sept 2022, Ethereum now boasts “real yield”. Institutions love yield, especially real yield, making Ethereum an attractive option for them.
- Call to Action: The report calls for the Ethereum community to focus on its non-replicable advantages and to fulfill the vision that Ethereum is uniquely positioned to fulfill. It suggests that Ethereum should aim to become the de-facto institution-friendly smart contract chain.
Actionable Insights
- Understanding Ethereum’s Unique Position: Stakeholders should understand Ethereum’s unique position in the crypto ecosystem and its advantages over other smart contract chains. This understanding can guide strategic decisions and investments.
- Exploring Regulatory Comfort: Institutions should explore the regulatory comfort provided by Ethereum’s acceptance by regulators and its listing on the CME. This could provide a safer environment for investments compared to other cryptoassets.
- Capitalizing on Real Yield: Institutions should consider the real yield offered by Ethereum, which could provide a steady return on investment. This could be a significant factor in investment decisions.
- Aligning with Ethereum’s Vision: Stakeholders should align with Ethereum’s vision of becoming the de-facto institution-friendly smart contract chain. This could provide a clear direction for future growth and development.
