Why ETH Is The Best Bet On The Stablecoin Boom

In early July, the team at Electric Capital, an early stage venture firm focused on cryptocurrencies, blockchain, fintech, and marketplaces, released a report titled Beyond Stablecoins: The Case for Ethereum.

The message is clear: “Holding ETH is likely the simplest and most effective way to gain exposure to the growing stablecoin economy.”

After years of failed attempts to communicate the value of ETH scaling with the much clearer growth of the Ethereum network as the backbone of DeFi, ETH finally has caught fire with Wall Street investors and crypto-native investors, all thanks to stablecoins.

As the demand for stablecoins grows, the world needs financial infrastructure to serve stablecoin holders but not just any financial infrastructure, one that meets 3 criteria according to Electric Capital:

1. Accessible Globally: Must work for anyone with internet access.

2. Safe for Institutions – Must provide the security, reliability, regulatory clarity, and customizability that institutions need to build billion-dollar financial products.

3. Resistant to Government Interference – Must operate beyond the control of any single government, since many governments would prefer to restrict dollar access to protect local currencies and control capital flows.

Ethereum is the only blockchain that meets this criteria and so it is in a unique position to serve the global demand for stablecoins. This demand has created a flywheel for Ethereum and ETH, whereby the more stablecoins are put to work on Ethereum, the greater demand for ETH increases. Meanwhile, a higher ETH value and more secure network attract more institutions and services, which fuels even greater stablecoin adoption.

In this new episode of The Edge Podcast, Electric Capital General Partner Maria Shen, and Researcher Sanjay Shah, join us to break all this down and walk through their report on how the stablecoin flywheel drives demand for ETH, plus why holding ETH could likely be the best way to bet on the growing stablecoin economy.

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► Electric Capital website: electriccapital.com

► Beyond Stablecoins: The Case for Ethereum Report

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► Sanjay on X: x.com/sanjaypshah

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Disclosure: DeFi Dad, Nomatic, and Electric Capital all hold ETH.