Ethereum as the "World Ledger": From EIP-1559 to stablecoin Dominance

The positioning of Ethereum as the "world ledger" is not a new strategy that has emerged recently; in fact, this transformation was quietly completed with the implementation of EIP-1559. Currently, stablecoins hold a 50% market share on Ethereum, further solidifying its status as a financial settlement layer. Let's delve deeper into this transition:

EIP-1559: Redefining the Value Capture Mechanism

The core of EIP-1559 lies in reshaping the value capture mechanism of the Ethereum mainnet, rather than simply reducing gas fees. It signifies that Ethereum no longer relies on the gas consumption brought about by increased transaction volume to obtain value.

Before EIP-1559, all transactions were concentrated on the mainnet, leading to a huge amount of ETH being burned and severe congestion on the mainnet. Layer 2 also had to participate in gas bidding when submitting batch data to the mainnet, resulting in high and unpredictable costs.

EIP-1559 introduced a predictable Base fee mechanism, making the batch submission costs of Layer 2 on the mainnet stable and controllable, thereby lowering the operational threshold for Layer 2. This change effectively shifts the value capture logic of Ethereum from "consumption-based growth" to "tax-based growth."

Layer 2 currently earns user transaction fees but must regularly submit batch data to the mainnet and burn ETH, forming a relationship similar to that between banks and central banks. This model aligns better with the positioning of the "world ledger".

Stablecoin: Market's Recognition of Ethereum's Security

The total market value of stablecoins globally currently exceeds $250 billion, with Ethereum accounting for 50% of the share. This ratio has not decreased but rather increased after the implementation of EIP-1559, mainly due to Ethereum's irreplaceable security premium.

The total amount of USDT and USDC on Ethereum far exceeds that of other public chains. The issuers of stablecoins choose Ethereum not because of transaction speed or cost, but because they value the economic security brought by nearly 100 billion USD worth of staked ETH. This is crucial for institutions managing large assets.

The concentration of stablecoins on Ethereum has formed a self-reinforcing growth loop: as the scale of stablecoins increases, it brings deeper liquidity, attracts more DeFi protocols, which in turn generates more demand for stablecoins, attracting more capital inflow. This phenomenon can be seen as the market's recognition of Ethereum's "world ledger" positioning in global liquidity.

Strategic Positioning of the Ethereum Ecosystem

As the Ethereum mainnet focuses on a "central bank-level" settlement layer, the strategic positioning of the entire ecosystem has become clear: each Layer 2 is responsible for high-frequency trading, while the mainnet focuses on final settlement, with clear and efficient division of labor. Every settlement from Layer 2 back to the mainnet will burn ETH, promoting a deflationary effect.

However, current data shows that the prosperity of Layer 2 does not seem to bring the expected deflationary contribution to the Ethereum mainnet. The daily average ETH burning volume on the mainnet has significantly decreased, while the transaction volume and revenue of major Layer 2 platforms are skyrocketing.

This phenomenon is attributed to a significant migration of users to Layer 2, resulting in a decrease in transactions on the mainnet. Nevertheless, this does not affect Ethereum's status as the world's ledger. The large accumulation of stablecoins, the security provided by substantial ETH staking, and the largest DeFi ecosystem globally all demonstrate that capital chooses Ethereum's settlement authority, rather than the trading prosperity of the Layer 2 ecosystem.

Conclusion

The founder of Ethereum recently emphasized the positioning of the "world ledger," which is more like an official confirmation of a fait accompli. The implementation of EIP-1559 marks Ethereum's transition from a "world computer" to a "world central bank." If the future direction of cryptocurrency development is the integration of on-chain DeFi infrastructure with traditional finance, then Ethereum's positioning as a "world central bank" will be sufficient to solidify its status, and the prosperity of the Layer 2 ecosystem is not a key factor.