Ethereum Could Become Strategic Reserve Asset With $4 Trillion Stablecoin Supply By 2030

In the rapidly evolving landscape of cryptocurrency, a new thesis has emerged suggesting that Ethereum (ETH) could become a strategic reserve asset akin to oil. This theory is grounded in the idea that ETH could serve as the settlement layer for a multi-trillion-dollar tokenized economy. According to this perspective, the accelerating trend in digital asset tokenization could lead to a scenario where stablecoin supply reaches nearly $4 trillion by 2030. This surge in tokenized assets, including stocks, bonds, and real-world assets, could total between $9 trillion and $19 trillion.

Proponents of this thesis argue that Ethereum, with its robust security and established network effects, is well-positioned to become the primary settlement layer for this new financial system. In this future, stablecoins, which already account for over $100 billion in backing by U.S. Treasuries, would predominantly run on Ethereum’s infrastructure. If this scenario materializes, the Ethereum network could become a systemic and indispensable part of the U.S. financial infrastructure.

An analyst estimates that ETH’s price could surge between $30,000 and $80,000 by 2030, depending on the population of tokenized assets running on the blockchain and if sovereign states start hoarding ETH to secure leverage. This digital asset tokenization could change the Ethereum narrative, turning ETH into a reserve-grade asset, not just a cryptocurrency.

However, this thesis has sparked debate, with Solana’s co-founder Anatoly Yakovenko positioning SOL as a key competitor. Yakovenko triggered a debate after referring to Solana as digital gold, ahead of Ethereum, which most of his opponents preferred for that description. Yakovenko sought to replace Ethereum with Solana in an elaborate analysis posted by an Ethereum supporter who projected the possible outcome of events in the digital space that could lead to massive Ethereum adoption.

Yakovenko's argument centers on the idea that Solana, with its high-speed transactions and low fees, is better suited to handle the demands of a tokenized economy. He believes that Ethereum's scalability issues and high transaction fees make it an unsuitable candidate for widespread adoption. This counterargument highlights the ongoing debate within the cryptocurrency community about which platform will emerge as the dominant force in the digital economy.

The debate between the 'ETH as New Oil' thesis and Yakovenko's counterargument underscores the complex nature of the cryptocurrency market. While ETH's potential as a foundational asset is undeniable, its current limitations cannot be ignored. As the market continues to evolve, it remains to be seen whether ETH can overcome these challenges and fulfill its promise as the new oil of the digital age.