Vitalik's "ETH Store of Value Thesis" Questioned: Don't Sacrifice L1 Fee Revenue

Odaily reports: In response to Vitalik's proposal that Ethereum should prioritize strengthening its store of value (SoV) positioning, DeFi researcher Ignas published a rebuttal stating that ETH may be more suitable as a store of value (SoV) asset than BTC and ZEC. Its advantages include native staking yields, privacy features in the roadmap, and potential deflation through transaction fee burning. Using BTC or ZEC as collateral to obtain loans typically requires relying on wrapped assets or trusting banks and centralized exchanges, whereas ETH can achieve native collateralization and asset swaps on the same chain.

However, while Ethereum is re-emphasizing the store of value direction, the hope for Vitalik to pivot to this positioning is not because Ethereum L1 is believed to be permanently unable to generate sufficient fee revenue to drive ETH deflation. Scaling will also reduce transaction costs, but the key remains whether market demand can grow in tandem and whether the Ethereum community can drive demand growth.