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ETH: The reserve asset of the digital dollar economy and a global store of value.
The Best Ways to Participate in the Stablecoin Wave
The global demand for the US dollar is experiencing explosive growth. Over 4 billion people and millions of businesses are actively seeking to obtain US dollars through stablecoins, representing the largest expansion of the dollar's network effect in decades.
This has created unprecedented opportunities for Ethereum. Stablecoins provide individuals worldwide with access to dollars—growing 60 times since 2020, exceeding $200 billion. These new dollar holders not only need digital cash but also require yields, investment opportunities, and financial services. Traditional finance struggles to serve this massive new market due to regulatory and infrastructure limitations.
Ethereum has unique advantages that can provide global financial infrastructure for this emerging digital dollar economy, and ETH will directly benefit from this growth.
Stablecoins Bring Millions of New Dollar Holders
There is a huge potential demand for the US dollar from individuals and businesses worldwide.
People around the world hope to secure safety with the US dollar:
Businesses need US dollars to conduct transactions:
For the first time in history, anyone in the world can hold US dollars through stablecoins:
Stablecoins are creating a new class of dollar holders among the largest population groups globally—businesses are pricing in stablecoins, and households are saving in stablecoins. They are driving a fundamental expansion of the dollar financial services market.
New Dollar Holders Seek Returns, Giving Rise to New Global Financial Infrastructure
Stablecoin holders want their money to work.
Today, millions of people can hold US dollars through stablecoins. But their aspirations go far beyond this. Individuals and businesses naturally wish to use their funds to earn returns, invest, and grow their wealth.
Traditional finance cannot serve this new market:
This has created a demand for new financial infrastructure that can serve billions of stablecoin holders worldwide, allowing them to utilize new dollars.
Ethereum Meets the Service Needs of Global Stablecoin Holders
The new financial infrastructure designed to serve stablecoin holders must meet three key requirements:
Ethereum meets all three requirements:
Ethereum uniquely meets these requirements with its strong decentralized features:
There are no other alternatives that can meet all three requirements at the same time.
ETH: The Reserve Asset of the New Digital Dollar Economy
With billions of dollars flowing through stablecoins on Ethereum, participants need a secure, permissionless, and efficient asset to support lending, staking, and yield generation. ETH has a unique advantage in this regard:
As more and more users hold stablecoins and require financial services, they need a reserve asset to support these activities. ETH can earn yields, secure the network, and support DeFi lending—therefore, as the system evolves, the demand for ETH will naturally grow.
In short: more adoption of stablecoins → more on-chain activities → more demand for ETH as collateral → institutions and users holding more ETH.
The growth of Ethereum Layer-2 has further stimulated the demand for ETH. By reducing transaction costs, speeding up transaction times, and enabling new use cases, Layer-2 has opened up more areas where ETH can be used as collateral.
ETH: A Potential Global Store of Value
The growing demand for ETH has also led it to occupy a large share of the traditional value storage market:
Conclusion: Hold ETH to Participate in the Stablecoin Economy
The growth of the stablecoin economy has created a strong flywheel for Ethereum and ETH. As more stablecoins are utilized on Ethereum, the demand for ETH has also increased. Higher ETH value and a more secure network attract more institutions and services, further promoting the adoption of stablecoins.
The alternatives face significant challenges in replicating this flywheel:
The result is: holding ETH may be the simplest and most effective way to access the growing stablecoin economy.
Risks Worth Noticing
Like any emerging global system, Ethereum also faces significant risks:
Despite these risks, Ethereum still has strong advantages and development potential.