Ethereum is quietly surpassing its predecessor Bitcoin as the global settlement layer for on-chain assets, thanks to its programmability and scalability.
Ethereum: The Global Settlement Layer for On-Chain Assets
The other major cryptocurrency is becoming the global settlement layer for on-chain assets, says Alec Beckman from Advantage Blockchain’s.
Ethereum is an open-source, decentralized, blockchain-based platform launched in 2015 by Vitalik Buterin.
It allows for the creation and execution of smart contracts, enabling the development of decentralized applications (dApps).
The Ethereum network uses its native cryptocurrency, Ether (ETH), to facilitate transactions and reward miners for validating blocks.
With a market capitalization of over $200 billion, Ethereum is one of the largest and most widely used blockchain platforms in the world.
Bitcoin was born as a response to institutional failure, a decentralized escape hatch from corruptible centralized finance and a north star of self sovereignty. Bitcoin’s true vision was a peer-to-peer electronic cash system. That phrase is right there in the Bitcoin white paper’s title from Satoshi himself.
Bitcoin is a decentralized digital currency created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto.
It was the first cryptocurrency to utilize blockchain technology, allowing for secure and transparent transactions without the need for intermediaries.
Bitcoin's value is determined by supply and demand on online exchanges and can fluctuate significantly.
As of 2022, it has become a widely recognized and accepted form of payment globally.
The Evolution of Ethereum: From Payments to Infrastructure
Today, Bitcoin is many things: a store of value, a form of digital gold, and a macro asset. However, it is not electronic cash. It is too volatile for daily use, too slow to scale, and too rigid to adapt as a cash equivalent. Somewhere along the way, Bitcoin gave up on being the system, and instead became the signal.
Ethereum, by contrast, might be the one actually delivering on Bitcoin’s original promise. Thanks to Ethereum’s programmability, we now have stablecoins, arguably the most successful crypto use case to date. Dollar-backed tokens like USDC and USDT settle trillions in peer-to-peer value across borders 24/7 with no bank intermediaries. Stablecoins are Bitcoin’s white paper come to life, minus the volatility.
A stablecoin is a type of cryptocurrency that maintains a stable value relative to a fiat currency, such as the US dollar.
It is designed to reduce volatility and provide price stability in the cryptocurrency market.
Stablecoins are often pegged to the value of a particular asset or basket of assets, ensuring their value remains relatively constant.
They are commonly used for trading, remittances, and storing value.
The Rise of Stablecoins on Ethereum
Ethereum’s scale can be shown through on-chain data. Stablecoins on Ethereum and its Layer 2s now rival the transaction volume of major credit and debit card networks. In markets where local currencies are unstable or financial access is limited, stablecoins have become lifelines. They are used for remittances, payroll, savings, and even commerce.
The irony is that Bitcoin wanted to replace fiat, but it’s Ethereum that has quietly made fiat better. It gave the dollar superpowers like composability, programmability, and global mobility. And it’s doing it without centralized permission.
Beyond Payments: Ethereum’s Growing Influence
The evolution of Ethereum doesn’t stop at payments. Once you understand the technology, you realize ETH does everything BTC can do, and so much more. The rise of real-world asset tokenization (RWAs) is a perfect example. Treasury bills, private credit, and fund shares are now being issued on Ethereum, bringing regulated assets into composable finance.
Additionally, unlike Bitcoin’s inert capital, Ethereum enables native yield through staking, allowing participants to secure the network while earning predictable returns — an increasingly attractive feature for institutions seeking on-chain cash flow.
While Bitcoin adoption has captured mainstream headlines, Ethereum’s fundamentals quietly continue to grow as the platform gains institutional market share. Some metrics to back up Ethereum’s growing influence and usage include:
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Developer activity
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Stablecoin usage
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Real-world adoption
Ethereum isn’t replacing Bitcoin. But it’s fulfilling what Bitcoin started: a decentralized, global financial system with open access and programmable trust — in short, digital cash. Bitcoin sparked the movement. But Ethereum is scaling it.
For further information, please click here to view Advantage Blockchain’s last quarterly report.
Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.
- coindesk.com | Ethereum Is What Bitcoin Was Meant to Be
