X @Ignas | DeFi

Store of Value (SoV) Potential - Ethereum's potential for price appreciation is limited by its failure to be widely accepted as a store of value [1] - To justify holding Ethereum, investors need to believe in its potential to become a store of value asset [1] - Ethereum needs to gain acceptance from passive institutional and retail holders, similar to Bitcoin [2] - A deflationary supply is considered a crucial element for Ethereum to become a superior store of value compared to Bitcoin [2][3] Tokenization and Real World Assets (RWAs) - The current narrative of tokenization and RWAs may not be sufficient to significantly increase Ethereum's price without the store of value premium [1] - New chains are already competing for RWA and stablecoin adoption with features like privacy, speed, and low fees, potentially hindering Ethereum's growth in this area [1] Ethereum's Advantages - Ethereum possesses native yield and smart contract utility for usage within DeFi [4] - Some DeFi users already treat Ethereum as a yield-bearing collateral, indicating existing adoption as a store of value [2] Challenges and Future Outlook - Alt L1s are unlikely to be as neutral or decentralized as Ethereum, giving Ethereum a potential advantage [2] - Ethereum needs to find a way to tax the L2s, and adoption needs to grow enough to burn supply for it to become a superior SoV [3]