Why Ethereum is Still a Worthwhile Investment in the Era of Stablecoins and DeFi?

In the financial world, an almost immutable principle is: "Big money will always flow to where there is the most liquidity." Liquidity not only makes transactions cheaper and safer but also creates trust for large financial institutions to confidently deploy capital. With the crypto market, as liquidity is gradually reaching a scale that financial institutions can participate deeply, Ethereum has emerged as an indispensable center. Ethereum – "the liquidity bank" of stablecoins Stablecoin is a cryptocurrency that is pegged to fiat, the most common being USD. They are the "lubricant" for the entire DeFi ecosystem: from lending, trading, payments to cross-border payments. Ethereum is currently the network holding the largest amount of stablecoins in the crypto industry, with approximately 146 billion USD in stablecoins circulating on the native network (Layer 1). For comparison: Tron: approximately 82 billion USD Solana: approximately 12 billion USD This superiority makes Ethereum the benchmark for on-chain liquidity. That is also why the TVL (Total Value Locked) of Ethereum is always at the forefront, while encouraging new DeFi projects to choose to build on Ethereum to access the available "huge cash flow." The "positive feedback loop" effect is formed: where there is the most money, it will continue to attract more capital. Large Liquidity – a springboard for institutional capital For pension funds or asset management organizations, moving large amounts of capital in a "thin liquidity pipes" market ( is extremely risky. Ethereum addresses this issue by: High liquidity helps reduce slippage ). The DeFi infrastructure system is becoming more optimized, which helps reduce operational costs after transactions. According to data from 2024, the total payment volume of stablecoins across multiple blockchains reached 27.6 trillion USD – a figure comparable to traditional payment systems. This means that financial institutions will certainly need a "safe haven" to handle these massive flows of money, and Ethereum is currently the most reasonable destination. Barriers and competitors However, Ethereum's long-term victory is not a certainty. Tron: dominates in P2P stablecoin transactions in many regions, even at times processing higher stablecoin transaction volumes than Ethereum. If retail money flows become the norm, Ethereum's advantage may narrow. Solana: fast speed, low fees, suitable for real-time payment and DeFi applications. If financial institutions prioritize instant processing over deep liquidity, Solana could definitely capture market share. Conclusion: Ethereum is still a worthy investment choice. Despite the competition, Ethereum still possesses the largest advantage: abundant stablecoin liquidity and strong connections to global capital flows. As stablecoins continue to scale and financial institutions increasingly prioritize networks with high liquidity, Ethereum is likely to maintain its role as the "on-chain financial center." Of course, the landscape will always change as Solana or Tron have their own advantages. But in the short to medium term, Ethereum still deserves to be the top choice for investors looking to bet on the explosion of stablecoins and DeFi in the coming years.