The real value built on Ethereum exceeds the price of Ethereum. $ETH itself. Researcher and analyst Leon Wideman shared Token Terminal data showing that Ethereum has achieved an interesting record of around $210 billion in fully diluted valuation (FDV) and around $260 billion in total value locked (TVL).
The total amount of assets used in the Ethereum protocol exceeds the theoretical value $ETH It will be created someday. This is noteworthy because even during past bull markets, TVL has almost always been below Ethereum’s FDV.
According to Waidmann, this is either because the Ethereum ecosystem has become too large for its current price, or because $ETH However, the price is still not high enough.
At the same time, the interest of institutions $ETH It’s growing again. Approximately $70 million was inflowed into the Ethereum ETF on July 8th, the largest single-day inflow in about a month. This brings the net inflow for the fifth consecutive day to approximately $162 million.
When an investor buys a stock, the ETF issuer makes a physical purchase. $ETHdrawn into long-term institutional storage, reducing the supply available for trading. Therefore, continued inflows into the ETF create true spot demand.
Why is the Robinhood chain important? $ETH
On July 1, Robinhood launched the public mainnet of Robinhood Chain, an Ethereum layer 2 blockchain. It is built on Arbitrum technology and aims to process tokenized real-world assets (RWA) such as DeFi and stocks.
Ethereum Daily on X shared an interesting idea that Robinhood’s development could ultimately be beneficial to the following people: $ETH In the long run.
Layer 2 processes its own transactions but periodically returns to the main Ethereum chain. By doing so, you can benefit from Ethereum’s security, consensus, final settlement, and verification network. Without that connection, Layer 2 is not secure.
So if big companies like Robinhood, banks, fintechs, and brokerages all build on top of Ethereum L2, their share of their financial value will depend on Ethereum. At that point, $ETH It will serve as collateral to secure multi-trillion dollar financial infrastructure.
Additionally, the Ethereum Foundation says it has approximately $76 billion in funding. $ETH is at stake, and reversing Ethereum’s finality will cost tens of billions of dollars. Under current assumptions, an attacker would need approximately $50 billion to complete a fraudulent transaction, again demonstrating Ethereum’s economic security model.
Related: Bitcoin buys $40,000, Ethereum outperforms Bitcoin $ETH
