We present a comprehensive analysis of Ethereum's structural positioning within the emerging tokenized economy, establishing a framework for understanding its long-term value drivers.
Our research identifies five structural tailwinds that position Ethereum as the dominant infrastructure layer for digital finance: (1) entrenched stablecoin settlement dominance processing $8.9T in H1 2025 transaction volume; (2) accelerating institutional adoption evidenced by $22B in spot ETF AUM and $18B in corporate treasury allocations; (3) commanding market share in the $16-30T addressable RWA tokenization market; (4) unique yield-bearing characteristics (2-4% base, 8-12% restaking) transforming ETH into a reserve asset; and (5) sustained DeFi supremacy with $84-93B TVL and 49-56% market share.
Our valuation framework incorporates Network Value to Transaction (NVT) analysis, supply-demand dynamics modeling, and institutional allocation forecasting. We observe that current market valuations inadequately reflect the structural supply compression resulting from staking mechanisms (30% of supply locked) and EIP-1559 deflationary burn dynamics, occurring simultaneously with institutional demand acceleration.
Our conservative/base/optimistic scenarios yield 12-month valuation ranges of $5,000/$8,500/$12,000+ respectively, with long-term 2035 projections spanning $40,000-$80,000.
Ethereum: The Unassailable Foundation for a Tokenized World
Inside this digital asset insight
- Five pillars establishing Ethereum’s structural dominance in the tokenized economy
- Multi-scenario valuation framework with 12-month and 2035 projections
- Institutional adoption metrics and regulatory dynamics influencing ETH demand
- Portfolio construction considerations for yield-bearing digital assets
This research examines Ethereum’s foundational role in the tokenized future of global finance and its implications for institutional digital asset strategies.
