Fidelity: Ethereum as a Full-Blown Digital Economy
In a recent analysis, Fidelity frames Ethereum as much more than just a platform for smart contracts—it is emerging as a full-fledged digital economy with its own sovereign money, economic sectors, and monetary policy.
ETH: More Than Just “Gas”
Fidelity’s report highlights that ETH (Ether) is not simply a utility token for paying transaction fees (“gas”). Instead, it serves as sovereign money within the Ethereum ecosystem, underpinning a wide range of financial activities:
Settlement Layer: ETH is the native currency for settling transactions on Ethereum, ensuring the security and finality of all on-chain activity.
Store of Value & Collateral: ETH is widely used as collateral in DeFi protocols, giving it a foundational role in lending, borrowing, and other financial applications.
