Main Points:
- Ethereum’s Layer 2 scaling strategy is technically successful, yet underpriced.
- “Application Capital” shows Ethereum dominates other chains in asset volume.
- Solana’s real-world growth poses a unique competitive challenge.
- Regulatory winds are shifting in Ethereum’s favor, especially for RWAs.
- The root cause of price stagnation: lack of confidence and real-world adoption.
- Market confidence may hinge on visionary leadership and institutional entry.
Ethereum’s Scaling Strategy: Technically Successful but Undervalued
Ethereum has established a solid technical foundation through a “hub-and-spoke” model. In this framework, the main Ethereum chain (Layer 1 or L1) is reserved for high-value use cases, while various Layer 2 (L2) networks handle the transaction throughput. Ryan Berckmans, a prominent Ethereum investor and community member, praises this architecture, calling it “brilliant” for its ability to scale across technical, political, and product layers.
Berckmans stresses that decentralization is not just a philosophical ideal—it’s a critical risk management tool. In a future where trillions of dollars may be hosted on public blockchains, the ability to own digital assets without third-party risk is essential. Ethereum’s structure offers precisely this kind of sovereignty and resilience.
“Application Capital” Reveals Ethereum’s True Dominance
Berckmans introduces a powerful metric: Application Capital. This term refers to all value deployed on Ethereum except ETH itself—this includes stablecoins, tokenized real-world assets (RWAs), L2 tokens, and even meme coins. Ethereum dwarfs all other chains in this regard.
Furthermore, Ethereum’s ecosystem supports a diverse range of L2s—such as Arbitrum, Base, and Worldchain—each flourishing in niches like DeFi, gaming, and identity verification. These L2s validate the hub-and-spoke model’s effectiveness and help maintain Ethereum’s lead as the platform of platforms.
Ethereum vs. Solana: The Real-World Growth Gap
Despite its technical superiority, Ethereum faces challenges when compared to rivals like Solana. While Solana’s once-lauded speed and low fees are no longer unique, it has succeeded in capturing real-world momentum—thanks to strong organizational push and outreach.
Berckmans believes Ethereum is too focused on technology and not enough on real-world engagement. He warns that Ethereum needs to recognize this as a missed opportunity. Real-world expansion should be considered as crucial as any protocol upgrade.
Regulatory Shifts and Ethereum’s Role in RWA Tokenization
In recent years, crypto regulation—particularly in the U.S.—has been largely adversarial. But the tide is turning. Major financial players like BlackRock are exploring asset tokenization on Ethereum, signaling renewed institutional confidence.
Ethereum’s trust-based infrastructure makes it the ideal platform for tokenizing real-world assets, including real estate, bonds, and stablecoins. These use cases represent only the first wave of blockchain adoption in the traditional business and governmental sectors, with more to come.
The Real Reason ETH’s Price Isn’t Rising: Confidence and Communication
Why hasn’t Ethereum’s price caught up with its technological momentum? Berckmans points to two culprits:
- A lack of confidence within the Ethereum community itself.
- A failure to translate technical superiority into real-world adoption.
The community must not only believe in Ethereum’s L1/L2 strategy but also actively demonstrate its utility through partnerships, adoption campaigns, and business integrations. Without this, external investors—especially institutional ones—won’t follow.
Institutional Investors: The Next Key Buyers
The next surge in Ethereum’s price may come from institutional capital. BlackRock’s involvement is a promising signal, but it’s not enough. Berckmans argues that Ethereum needs its own “Michael Saylor”—a figure who loudly champions ETH, drives institutional trust, and energizes media narratives.
Saylor’s role in mainstreaming Bitcoin through MicroStrategy’s massive holdings has proven how critical a visible, vocal leader can be. Ethereum, Berckmans says, must cultivate such figures to accelerate adoption and improve market sentiment.
Closing the Price Gap Through Real-World Action
Ethereum’s infrastructure is ready. Its community is talented. Its vision is sound. But price growth will only follow if these pieces are connected to tangible, real-world progress. That means onboarding traditional enterprises, enabling RWA tokenization, engaging with regulators, and building user-friendly L2 applications.
Ethereum doesn’t lack fundamentals—it lacks narrative confidence and visible traction outside the crypto world. As Berckmans concludes, Ethereum must now “grow enough to use the infrastructure we’ve built,” showing that it is not just the best protocol, but also the best ecosystem for real human and economic needs.Conclusion
Ethereum is at a pivotal juncture. Its tech is winning. Its strategy is validated. But markets need more than theory—they need action. To justify and drive ETH price growth, the Ethereum community must expand its focus from infrastructure to influence. That means empowering real-world use, supporting institutional narratives, and proving to the world that Ethereum isn’t just a platform—it’s the foundation for the next economic system.
