Ethereum Re-evaluated as a Digital Economy Bond..."Buried in Short-Term Fees, Missing Out on Value"

▲ Ethereum (ETH)

It has been pointed out that investors evaluating Ethereum (ETH) like a big tech stock entering a mature stage are missing the most crucial trend. While focusing only on short-term fees and cash flow, analysis suggests that Ethereum is engaged in a larger game: establishing itself as a neutral payment and security layer for the internet economy.

According to crypto-specialized media NewsBTC on May 29 (local time), crypto analyst The Short Bear recently stated that investors selling and surrendering Ethereum are making a costly mistake. He pointed out that many investors treat Ethereum like a late-stage Amazon, focusing only on margins, fees, and cash flow.

The Short Bear explained that Ethereum is still in the early stages of economies of scale, with almost all metrics showing mid-double to triple-digit growth rates. He noted that while the market is preoccupied with which network will be the fastest and cheapest payment processor, the true value lies not in transaction fees themselves, but in the scale of economic activity the network protects, its security reliability, the neutrality of its base layer, and its difficult-to-replace structure after widespread adoption.

He emphasized that this is also where Ethereum differentiates itself from other networks. While networks focused solely on technical efficiency might have their advantages replicated or become meaningless, Ethereum is moving towards becoming the most secure, decentralized, and trustworthy neutral payment layer in the internet economy. The Short Bear stated that the most valuable network is not necessarily the one with the lowest transaction costs, but rather the one most trusted to protect high-value assets and applications over the long term.

Staking was also presented as a key rationale. The Short Bear argued that one-third of the total Ethereum supply is already staked, and in this structure, ETH can become one of the almost unique neutral and secure bonds for the digital economy, rather than just a held asset. He assessed that Ethereum has significant potential if it maintains market share and continues upgrades to improve speed, throughput, and fees. He particularly saw Ethereum's role expanding if AI agents enter a crypto-native environment.

NewsBTC reported that The Short Bear believes if Ethereum takes the throne as a value security network, ETH could be evaluated as a decentralized, inflation-adjusted global bond. In this scenario, the analysis suggests that ETH could justify a premium market capitalization by providing both asset protection features and staking yield incentives.

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