- Lubin argues decentralization depth gives ETH reliability advantage, with thousands of independent validators safeguarding network integrity and growth.
- He forecasts hybrid human‑machine economy where smart contracts use ETH for settlement of AI‑driven on-chain value exchanges worldwide.
Joseph Lubin, co‑founder of Ethereum, outlined a fresh valuation thesis for ETH at a recent industry event. He argued that ETH functions like “digital oil,” powering a re‑decentralized economy. In his view, Ethereum has moved beyond its early metaphors and now underpins services in AI, data infrastructure and decentralized finance.
Lubin described two key value drivers
First, he called Ethereum the “world computer,” the platform that hosts decentralized applications at scale. Second, he introduced the “trust commodity” model. In this model, ETH acts as a global medium of digital trust, secured by thousands of independent validators.
He noted that deep decentralization gives ETH a reliability edge. “When so many nodes validate every transaction, you build a base layer of trust that no single actor can control,” Lubin said. This trust layer, he added, could become as essential to digital commerce as physical energy is to industry.
Moreover, Lubin suggested that current price levels understate ETH’s future role. He pointed to ongoing AI integration with on‑chain data feeds, where smart contracts execute based on real‑time signals. As machines trade and negotiate value autonomously, ETH could serve as the accounting unit for hybrid human‑machine exchanges.
He then raised a broader forecast
If AI, decentralized identity and tokenized assets converge, Lubin believes, Ethereum could facilitate value flows that exceed today’s global GDP. Such a scenario positions ETH as a foundational infrastructure asset rather than a niche finance token.
Ultimately, Lubin called for fresh thinking about ETH’s potential. He urged investors and builders to look past short‑term price swings and focus on the network’s role as both compute engine and trust medium. In his words, “This thesis isn’t bullish enough,” suggesting that ETH’s impact may still surprise the market.
Ethereum is trading at $2,419.70, marking a 4.21% decline in the past 24 hours, continuing its retracement after reaching local highs above $2,800 earlier this quarter. Over the last week, ETH has fallen by 10.03%, and monthly losses now stand at 1.36%.
This drawdown places ETH roughly 48% below its all-time high of $4,868, which was reached in late 2021. Despite recent weakness, Ethereum maintains its position as the second-largest cryptocurrency by market cap, serving as the base layer for DeFi, NFTs, and institutional tokenization initiatives.
On the technical front, ETH is below both its 50-day and 200-day moving averages, indicating continued bearish momentum. Key support is located at $2,400, and a deeper breakdown could open the path toward $2,200–$2,250, where strong historical buying activity has previously occurred.
Resistance remains at $2,700–$2,800, a critical range to reclaim in order to resume an uptrend. Momentum indicators like RSI and MACD remain neutral-bearish, and volume has been declining, suggesting low conviction among buyers during this pullback.
On the fundamental side, Ethereum’s on-chain health remains robust. Over 35 million ETH is now staked, reducing circulating supply and increasing the deflationary pressure that was introduced with the Merge and EIP-1559.
Exchange balances continue to decline, a sign that long-term holders are not distributing at current levels. Meanwhile, the ecosystem around Ethereum Layer 2 solutions (Arbitrum, Optimism, zkSync, Base) is expanding, absorbing most of the transaction load and positioning ETH as the settlement layer of the modular blockchain stack.
The market continues to await the SEC’s approval of a spot ETH ETF, which could act as a major bullish catalyst. ETHNews analysts from Bernstein and VanEck recently reiterated their belief that ETH ETFs will likely receive clearance by late 2025, potentially unlocking billions in institutional demand.
Furthermore, Ethereum is at the center of real-world asset tokenization pilots by large financial players such as BlackRock, HSBC, and Euroclear — all of whom are exploring issuance and settlement of tokenized funds and bonds on Ethereum-based infrastructure.
