This report argues that Ethereum is fundamentally mispriced because markets value it as a for-profit company rather than as a public good. Like the Internet’s base protocols (TCP/IP), Ethereum’s true economic power lies not in the fees it extracts (revenue), but in the vast ecosystem of value it enables (externalities) . Traditional financial metrics fail to capture this “invisible” infrastructure value.

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The research proposes a holistic valuation framework for “Ethereum-the-System” based on three distinct lenses:

1. Captured Value (Visible Equity): The current market capitalization of ETH, Layer-2s, and DeFi assets, representing the financialized layer the market already recognizes (estimated at $0.6–0.9 trillion).
2. Economic Flow (Digital GDP): The annual value of economic activity that relies on Ethereum for settlement, such as stablecoins, tokenized assets, and DeFi . With Ethereum-dependent flows estimated at over $50 trillion annually, the capitalized value of this “Digital GDP” ranges from $300 billion to $3 trillion.
3. The Trust Surplus (Invisible Value): The economic gain created by eliminating expensive intermediaries, reducing fraud, and minimizing counterparty risk. Analogous to the “consumer surplus” generated by the Internet, this unpriced utility is valued at $150–600 billion.

Conclusion: By aggregating these layers, the report places Ethereum’s current intrinsic valuation at the $2–6 trillion range. As the platform matures into the “Global Trust Underlayer” for institutional finance—mirroring the Internet’s historical trajectory—the model projects a long-run valuation of $10–20 trillion by 2035.

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