The Road to a Trillion Dollar ETH

For more than five years, the application TVL on Ethereum has established a floor for ETH's valuation. That is, ETH's fully diluted market cap has not fallen below the sum of funds deposited into the applications on Ethereum. If this trend continues to hold, ETH should reach a market cap of one trillion dollars once the application TVL on Ethereum surpasses that threshold.

Many of the leading applications on Ethereum use ETH the asset as a core input to power their businesses. For example, Aave has ~$20 billion of ETH and ETH derivatives as deposits. When used as collateral, these deposits allow borrowers to take out new loans that drive increasing revenue for Aave. Aave creates new demand for ETH, and directly benefits from a growing value of ETH. Because of this synergistic relationship, Ethereum works more like a Money Cloud than a Big Tech Cloud.