Can Ethereum Really Become the World’s Reserve Asset and Overtake Bitcoin?

Ethereum has reignited debate in the crypto world after breaking above $2,850, with its founder community and analysts now openly discussing whether ETH could become the world’s reserve asset and even surpass Bitcoin. This surge has sparked renewed optimism, especially as altcoins follow ETH’s lead in a sharp market rally.

Ryan Sean Adams, founder of Mythos Capital, is among those pushing the bold narrative. He argues Ethereum is no longer just infrastructure for decentralized apps but a productive, yield-generating asset that could serve as a global store of value. Adams calls this the “blue money gospel,” urging the market to see ETH as a viable reserve asset on par with gold, oil, and even Bitcoin itself.

Is Ethereum’s new narrative enough to dethrone Bitcoin?

Since 2022, Ethereum has lagged behind Bitcoin, trading over 60% below its all-time high while Bitcoin has surged to new records. This divergence has frustrated ETH holders but also created what some see as a major opportunity for revaluation.

A comprehensive report from the Ethereum community, signed by leading researchers and investors, frames ETH as “digital oil,” a deflationary, yield-bearing reserve asset powering the on-chain economy. The report claims Ethereum is already the backbone for over 80% of all tokenized assets and stablecoins, making it the default platform for institutional blockchain infrastructure.

Did you know?
A recent report by 21 leading Ethereum researchers projects ETH’s long-term potential market cap at $85 trillion, comparing its future role to oil, gold, and global money supply.

Will institutional adoption push ETH past BTC in global finance?

The approval of Ethereum spot ETFs in major markets and growing institutional interest have added fuel to this narrative. Analysts project that if current trends continue, ETH could test the $15,000 level before the end of 2025.

The new narrative emphasizes ETH’s role as a productive asset: staking yields, deflationary supply, and deep integration with DeFi and tokenized real-world assets. Proponents argue these features make ETH uniquely suited to become a globally neutral, censorship-resistant reserve asset, potentially more versatile than Bitcoin’s “digital gold” status.

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Ethereum’s ecosystem now powers most tokenized assets

Ethereum’s dominance as the base layer for tokenized assets is a key pillar of its reserve asset thesis. The network already hosts the majority of stablecoins, tokenized bonds, and on-chain collateral, positioning it as the financial backbone for a digital economy in transition.

Researchers estimate that 32.6% of the ETH supply is already used as collateral in DeFi or enterprise infrastructure, with more migrating to other blockchains as tokenization accelerates. As global finance digitizes, demand for a neutral settlement asset could favor ETH’s programmable and yield-bearing design.

ETH’s monetary design and yield set it apart from Bitcoin

Unlike Bitcoin’s fixed-supply model, Ethereum combines predictable scarcity with a yield mechanism. Since the 2022 merge to proof-of-stake, ETH’s net supply growth has hovered near zero, as most transaction fees are burned and staking rewards are distributed to validators. This deflationary pressure, coupled with staking yields, makes ETH a productive asset, more akin to a digital commodity than a static store of value.

Still, Ethereum faces real challenges. Its complex roadmap, competition from other Layer-1 blockchains, and the risk of fragmentation as activity shifts to Layer-2s all introduce uncertainty. Bitcoin’s simplicity, established brand, and regulatory clarity continue to make it the default reserve asset for many institutions.

The competition between ETH and BTC remains unresolved. But as Ethereum’s community and institutional backers push for a new global role, the next year could prove pivotal in determining whether ETH can truly rival Bitcoin as the world’s reserve asset.