By Konstantin Lomashuk & Artem Kotelskiy
Translated and edited by Odaily
Introduction: ETH as a Strategic Enterprise Asset
Recent developments show publicly traded companies reevaluating Ethereum's role. SharpLink Gaming plans to allocate up to $1 billion to acquire ETH as strategic reserves, while BTCS has purchased 3,450 ETH worth approximately $8.42 million. These moves signal ETH's evolution from "blockchain fuel" to a "corporate-level strategic asset."
This article systematically analyzes Ethereum's:
- Development trajectory
- Protocol evolution
- Scaling solutions
- Positioning in the Rollup era
Key question: Why does ETH deserve long-term holding?
DeFi: Ethereum's First Product-Market Fit (PMF)
Ethereum's initial vision of a global, trustless computing platform found concrete validation through decentralized finance (DeFi). The 2018-2020 bear market saw critical developments:
- ERC-20 tokens
- Uniswap's AMM model
- DAI stablecoin
- Lending protocols (Aave, Compound)
The 2020 "DeFi Summer" demonstrated:
- TVL surpassing $100B
- On-chain volumes exceeding CEX trades
- Network effects creating real ETH value
However, soaring gas fees exposed scalability limitations, prompting Ethereum's technical pivot.
Value Inflection Points: EIP-1559 to The Merge
EIP-1559: The Burn Mechanism (2021)
- Replaced "first-price auction" with base fee structure
- All base fees permanently burned (deflationary pressure)
- Active network → More ETH burned → Stronger value accrual
The Merge (2022)
- Transitioned consensus from PoW to PoS
- Reduced energy consumption by 99.95%
- Cut annual issuance from 4% to <1%
- Resulted in net negative inflation for extended periods
Rollup Era: Symbiosis or Parasitism?
Ethereum's scaling solution centers on Rollups—L2 chains that:
- Execute transactions off-chain
- Post data/state changes to L1
- Maintain security via Ethereum's base layer
Key Dynamics:
| Aspect | Pre-Rollup Era | Rollup-Centric Era |
|---|---|---|
| Value Flow | Direct to L1 | L2 aggregation → L1 |
| Fee Structure | 100% to miners | Split L1/L2 economics |
| Scaling Focus | L1 expansion | Modular (L1 security + L2 execution) |
Emerging Debate: Do Rollups adequately compensate L1 for security/data services?
Evaluating ETH's Value: Business Logic Framework
ETH Valuation Components:
Productive Asset Value (70%)
- Discounted future fee revenue
- Network security premium
Monetary Premium (20%)
- Store of value characteristics
Speculative Premium (10%)
- Meme/cultural value
Core thesis: Maximizing base-layer revenue strengthens all three components.
Ethereum vs. Solana: Strategic Differences
| Metric | Ethereum | Solana |
|---|---|---|
| Scaling Approach | Modular (Rollups) | Monolithic |
| Current TPS | ~15 (L1), 2000+ (L2) | ~4000 |
| Node Decentralization | 800k+ validators | <2k validators |
| Fee Revenue Drivers | DeFi, institutional | Memecoins (~50% volume) |
Key Insight: Ethereum's security/decentralization provides moat against volatile meme economies.
Rollup Business Strategy: Three Pillars
Expansion
- Keep DA costs low (<$0.001/tx)
- Target: 1M TPS capacity via PeerDAS
Interoperability
- Implement cross-Rollup standards (ERC-7683)
- Reduce fragmentation for users/devs
Differentiation
- Leverage Ethereum's trust/liquidity moats
- Attract institutional-grade Rollups
👉 Why Rollups Choose Ethereum DA
Value Accrual Pathways
Short-Term (2024-25)
- Grow Rollup ecosystem
- Maintain low DA fees ($0.0003/tx)
Medium-Term (2026-28)
- Capture CeDeFi flows (~10k TPS)
- Generate $1B+ annual fees
Long-Term (2029+)
- Enable AI agent coordination
- Target 30k TPS → $10B+ revenue
FAQ Section
Q: How does ETH's burn rate compare to Bitcoin's halving?
A: EIP-1559's dynamic burn adapts to network usage, creating variable-but-predictable scarcity unlike Bitcoin's fixed schedule.
Q: Aren't Rollups just postponing L1 scaling?
A: No—Rollups complement upcoming L1 improvements (100x gas limit hikes) through specialized execution layers.
Q: Why hasn't ETH price reflected these fundamentals?
A: Market cycles lag technological milestones. As Rollups mature (2025+), value accrual will become more visible.
👉 Institutional ETH Adoption Trends
Disclaimer: This content represents market analysis only, not investment advice.