Thread by @MariaShen

Stablecoins are spreading the dollar faster than any financial tech in history.

And Ethereum is becoming the financial backbone.

For Ethereum’s 10th birthday, we’re publishing our updated @ElectricCapital ETH thesis:

Remaking the Case for ETH 🧵

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Read the entire thesis here:

Co-authored by @sanjaypshah & myself. Data by @kateli_nyc.

Thank you to the feedback from:
@avichal
@puntium
@0xren_cf
@0x9e0ff
@EmilyMMeyers
@ericantonow
@n4motto
@sassal0x
@binji_x
@jessepollak
@jillrgunter
@TimBeiko
& otherselectriccapital.substack.com/p/beyond-stabl…

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Demand for dollars is exploding

Individuals want USD for security: 21% of the world lives w/ >6% inflation
Businesses need it to transact

For the first time, anyone can hold dollars via stablecoins

stablecoins: 60x growth since 2020

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But stablecoin users don’t just want to hold digital dollars.

They want truly global financial services:

→ Yield
→ Lending
→ Investment
→ Wealth creation

Traditional finance can’t serve this market.
Ethereum can.

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To meet this demand for truly global financial services, a system must be:
– Accessible globally (no geographic gatekeeping)
– Safe for institutions (security + regulatory clarity)
– Resistant to gov't interference

Ethereum delivers all three.

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How Ethereum uniquely delivers a global financial system:

→ Accessible: 24/7, open to anyone with internet

→ Safe for institutions: 10+ yrs uptime, ETH = commodity, customizable L2 stack, largest DeFi economy

→ Gov-resistant: no single point of control

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Ethereum delivers on all 3 requirements bc of its decentralization built over 10 years:

→ Community-funded PoW launch

→ 1M+ validators across 100+ countries + client diversity

→ Largest open source dev ecosystem

This level of neutrality is nearly impossible to replicate

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Today, Ethereum hosts the world's largest digital financial economy:

– $140B+ in stablecoins
– $60B+ in DeFi
– $7B+ in tokenized real-world assets

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ETH is becoming the reserve asset of the onchain dollar economy.

Reserve assets are trusted assets used for collateral, savings, & settlement
TradFi has US treasuries, usd, gold

On Ethereum, it’s ETH:

→ Scarce
→ Yield-generating
→ Deeply integrated
→ Seizure-resistant

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L2s further expand demand for ETH.

Cheaper, faster transactions = more use cases
More use cases = more demand for ETH as collateral
More ETH collateral = higher ETH utility and value

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This creates a natural flywheel:

Stablecoin growth → More onchain activity → More ETH used as collateral → More ETH demand → More infrastructure built on Ethereum.

ETH benefits directly from stablecoin expansion.

As ETH demand grows, it’s positioned as a SoV that can take share from legacy assets

Like gold & BTC: scarce, censorship-resistant
But it has yield

Americans hold $25T in dividend stocks vs. <$1T in gold

ETH & BTC may both disrupt legacy SoV (US treasuries, gold, real estate)

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The thesis is simple:

Stablecoins are onboarding millions into dollar-based finance.

They need a financial system that’s global, scalable, and trustless.

Ethereum runs it.
ETH secures it.

Full piece: electriccapital.substack.com/p/beyond-stabl…

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We’ve believed in programmable money since 2018.

We made the institutional case for Bitcoin at our founding.

Now we’re doing the same for Ethereum.

More thesis posts are coming.

Read & get updates here:
electriccapital.substack.com