Ethereum's Transition to a High-Integrity, Low-Fee Settlement Layer: New Value Accrual Mechanisms for Investors

Ethereum's evolution into a high-integrity, low-fee settlement layer in 2025 marks a pivotal shift in its economic model, redefining how value accrues for investors. This transformation is driven by a modular stack that prioritizes security and neutrality on the base layer while offloading scalability to competitive Layer 2 (L2) rollups. The implications for investors are profound: Ethereum is no longer a monolithic value-capture engine but a foundational infrastructure layer whose worth is derived from its role in enabling a decentralized, multi-chain ecosystem.

The Modular Stack and Fee Dynamics

Ethereum's base layer now processes over 50 million transactions monthly, with average base fees hovering at 1–3 gwei-a stark contrast to the volatile, high-fee environment of previous years. This low-fee environment is sustained by two key factors: gas-target elasticity and the migration of high-volume activity to L2s. Rollups like Arbitrum, Optimism, zkSync, and Starknet now handle 85% of Ethereum's transaction volume, offering developers optimized execution environments while anchoring settlement and security on Ethereum.

The Fusaka upgrade, implemented in December 2025, further solidified this shift. By introducing EIP-7918 (Blob Base Fee Bounded by Execution Cost), the upgrade stabilized blob fees and reduced unpredictability for L2 operators. Daily transaction fees on Ethereum plummeted to 289 ETH, down from over 1,800 ETH in early 2025, as L2s absorbed most user activity. This structural change has allowed Ethereum to maintain its role as a secure settlement layer without relying on high L1 fees for revenue.

Value Accrual Mechanisms for Investors

1. Staking and ETFs: A New Yield Paradigm

Ethereum's staking ecosystem has matured into a robust value-capture mechanism. The introduction of Ethereum ETFs, such as the Grayscale Ethereum Staking ETF (ETHE), has transformed staking from a technical process into a recurring income stream for investors. These ETFs distribute staking rewards as cash dividends, creating a competitive landscape where yield, transparency, and fee efficiency are key differentiators.

In 2025, liquid staking platforms like Lido and Rocket Pool further diversified yield opportunities. Lido offered staking yields between 2.5% and 5% while maintaining a total value locked (TVL) of over $10 billion. The rise of restaking-where staking rewards are reinvested across DeFi protocols-has amplified these returns, enabling investors to compound value across multiple layers of the ecosystem.

2. L2 Rollups and Blob Utilization

While Ethereum's base layer fees have declined, L2s have become the primary source of value generation. Metrics like blob utilization and settlement share now serve as critical indicators of Ethereum's long-term health. For example, the Dencun upgrade (2024) reduced data availability costs for rollups by 90–98% via EIP-4844, incentivizing further adoption. This has created a flywheel effect: as L2s grow, they drive more settlement demand on Ethereum, reinforcing its role as a secure, neutral base layer.

Investors are increasingly allocating capital to L2s with strong execution environments, such as Starknet, which optimized its proving system with S-two and introduced a decentralized sequencer architecture in 2025. These advancements position L2s as both scalable execution layers and value-creation hubs, with Ethereum acting as their security backbone.

3. Security Layer Economics and MEV

Ethereum's security layer has become a cornerstone of its value proposition. With over 16 million ETH staked (worth ~$40 billion at current prices), the network's security budget is both robust and adaptable. This decentralization-first approach ensures that Ethereum remains a credible neutral in a multi-chain world, attracting institutional capital and re-rating its economic model.

Maximal Extractable Value (MEV) has also emerged as a key revenue stream. Validators now capture 1.5–3% in MEV on average, with experimental fee models from projects like Taiko and ImmutableX exploring ways to distribute these gains to stakeholders. While MEV remains contentious, its integration into Ethereum's modular stack highlights the network's ability to monetize its security and data availability features.

Institutional Re-Rating and Long-Term Outlook

Institutions have begun re-rating Ethereum based on its economic sustainability and protocol credibility. Despite periods of inflation due to issuance outpacing burn, Ethereum's role as a settlement layer has attracted spot ETFs and increased staking activity, locking a significant portion of ETH supply. This shift reflects a broader recognition that Ethereum's value lies not in short-term fee extraction but in its ability to serve as a flexible, secure infrastructure for a decentralized future.

Looking ahead, Ethereum's 2026 roadmap-focusing on zero-knowledge (ZK) validation and further decentralization-promises to lower barriers to entry for validators and expand the network's security budget. For investors, this means Ethereum's modular stack will continue to unlock new value accrual mechanisms, from staking yields to MEV capture and L2-driven growth.

Conclusion

Ethereum's transition to a high-integrity, low-fee settlement layer is not a decline in its economic relevance but a strategic repositioning. By offloading scalability to L2s and prioritizing security on the base layer, Ethereum has created a modular ecosystem where value accrues through staking, MEV, and data availability. For investors, this evolution offers a diversified set of opportunities-ranging from yield-generating staking products to exposure to high-growth L2s. As the network continues to mature, Ethereum's role as the crypto ecosystem's foundational trust layer will only strengthen, cementing its position as a long-term value driver.