According to new analysis from asset management company VanEck, Ethereum is becoming a strong competitor to Bitcoin as a means of digital value storage.
This shift is primarily due to the rise of so-called Digital Asset Trusts (DATs) and Ethereum's increasingly attractive features for institutions seeking long-term investment 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 tokenized ecosystem have attracted the attention of financial institutions and enterprises. The 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 growing practical applications. Ethereum's built-in staking feature allows depositors to generate passive income—something Bitcoin currently cannot offer.
Inflation dynamics now favor ETH.
One of the most significant changes in Ethereum's economic model is the shift from Proof of Work (PoW) to Proof of Stake (PoS). According to VanEck, this transition has led to a negative net issuance of ETH.
From October 2022 to April 2024, Ethereum's supply decreased from 120.6 million to 120.1 million, representing a deflationary rate of -0.25%. In contrast, Bitcoin's supply increased by 1.1% during the same period, making ETH more attractive to investors focused on long-term value preservation.
With the increase in staking rewards, flexible infrastructure, and continuously decreasing supply, Ethereum is increasingly seen as not just a platform for smart contracts but as a true competitor to Bitcoin in its role as a means of value storage.
