Ethereum Gains Ground as Store-of-Value Contender, Says VanEck

Ethereum is emerging as a serious challenger to Bitcoin’s dominance as a digital store of value, according to a new analysis by asset management firm VanEck.

The shift is largely attributed to the rise of digital asset treasuries (DATs) and Ethereum’s increasingly attractive features for institutions seeking long-term crypto exposure.

Ethereum Finds Favor in Corporate Treasuries

While Bitcoin was the go-to choice for digital treasuries thanks to its fixed supply and simplicity, Ethereum is catching up fast. Its broader utility and role in stablecoin ecosystems and tokenization are attracting attention from financial institutions and corporates. Regulatory momentum in the U.S. around stablecoins has further elevated Ethereum’s strategic relevance.

VanEck analysts noted that several exchanges and brokerages have started issuing tokenized equities on Ethereum, demonstrating its expanding real-world use. Ethereum’s built-in staking also allows treasuries to earn passive income—something Bitcoin cannot currently match.

Inflation Dynamics Now Favor ETH

One of the most significant changes in Ethereum’s economic model came with its transition from proof-of-work (PoW) to proof-of-stake (PoS). VanEck highlighted that this shift has led to a negative net issuance rate for ETH.

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From October 2022 to April 2024, Ethereum’s supply fell from 120.6 million to 120.1 million, marking a deflation rate of –0.25%. In contrast, Bitcoin’s supply increased by 1.1% over the same period, making ETH more appealing to holders focused on long-term value preservation.

With staking income, flexible infrastructure, and a declining supply, Ethereum is increasingly seen as more than just a smart contract platform—it’s becoming a rival to Bitcoin’s store-of-value narrative.