According to new analysis by asset management company VanEck, Ethereum is becoming a strong competitor to Bitcoin as a means of storing digital value.
This shift is mainly due to the rise of so-called Digital Asset Trusts (DATs), as well as Ethereum's increasingly attractive features for institutions seeking long-term investments in crypto assets.
Ethereum has gained a foothold in corporate treasuries.
For a long time, Bitcoin was the preferred digital reserve due to its fixed supply and simplicity, but Ethereum is quickly catching up. Its broader utility and key role in the stablecoin and tokenization ecosystem have caught the attention of financial institutions and enterprises. Recent regulatory progress in the U.S. regarding stablecoins has also enhanced Ethereum's strategic importance.
VanEck's analysts report that multiple exchanges and brokerage platforms have begun issuing tokenized stocks on Ethereum, demonstrating the network's increasingly expanding practical applications. The built-in staking feature of Ethereum allows depositors to generate passive income—something that Bitcoin cannot currently provide.
Inflation dynamics now favor ETH.
One of the most significant changes in Ethereum's economic model is the transition from Proof of Work (PoW) to Proof of Stake (PoS). According to VanEck, this transformation has resulted in negative net issuance of ETH.
With increasing staking rewards, flexible infrastructure, and a continually decreasing supply, Ethereum is increasingly viewed not just as a platform for smart contracts, but as a true competitor to Bitcoin in its role as a means of storing value.
