Ethereum, the blockchain platform that powers countless decentralised applications and digital assets, is on the cusp of significant adoption, yet Wall Street appears to be in the early stages of recognising its potential. Many investors still view Ethereum as a speculative asset, much as Amazon was perceived in the 1990s when it was an online bookstore, a business model that would soon evolve to disrupt entire industries. Today, as Amazon stands as a $2 trillion tech giant, Ethereum could be on a parallel path, developing its utility and value through applications that have only started to be realised.
Leena ElDeeb, a research analyst at 21Shares, argues that Ethereum’s present stage is analogous to Amazon’s in its early years, before it transformed into the multifaceted business it is today. Despite spot Ether exchange-traded funds (ETFs) launching in July, interest remains modest compared to that for Bitcoin ETFs, as most institutional investors are cautious or unaware of Ethereum’s versatility. As the digital landscape shifts towards blockchain-based services and decentralised finance (DeFi), Ethereum’s potential could be a game-changer. However, the technology’s complexity might make it hard for traditional investors to grasp, as ElDeeb observes, calling Ethereum “complex, akin to Amazon in the 1990s.”
While Ethereum has a current market cap of around $320 billion, only a fraction of Amazon’s towering valuation, its foundational infrastructure has already supported projects valued at over $140 billion in DeFi applications. Ethereum’s initial promise lay in facilitating basic smart contracts, a function that has since evolved dramatically, extending to decentralised exchanges, stablecoin markets, and real-world asset tokenisation. As ElDeeb and her colleagues see it, Ethereum is well-positioned to be as transformative as Amazon was to e-commerce and cloud computing, especially as DeFi solutions gain mainstream appeal and practical applications multiply.
Ethereum’s primary advantage lies in its vast and dedicated developer network, a resource that Amazon, even in its heyday, could not match. Federico Brokate, vice president and head of the U.S. business unit at 21Shares, highlights this distinct advantage, noting that “the Ethereum network today features over 200,000 active developers.” These contributors include a mix of software engineers, researchers, and protocol designers who constantly push the boundaries of Ethereum’s capabilities. By comparison, Amazon ended the 1990s with around 7,600 employees, growing to employ over 1.5 million today. If Ethereum continues to expand at its current pace, the ecosystem could experience a similar scale of growth, reflecting the transformative power that a dedicated developer base can bring to a technology platform.
Beyond its growing developer network, Ethereum’s established dominance in key markets solidifies its foundational role in the blockchain world. Despite competition from other layer-1 blockchain platforms like Solana, which offer faster transactions at lower costs, Ethereum remains the primary choice for decentralised finance applications, stablecoin issuance, and digital asset marketplaces. Ethereum’s value proposition has proven resilient even as competitors attempt to capture parts of its market share. Ethereum’s position is further strengthened by its adoption among traditional finance giants like BlackRock and Union Bank of Switzerland, who have recently tokenised substantial funds on Ethereum. BlackRock alone has tokenised over $533 million worth of money market funds, and with payment giants like PayPal and Visa also building on the network, Ethereum’s influence on conventional financial systems is rapidly expanding.
Despite these promising indicators, Wall Street’s interest in Ethereum remains relatively limited, partly due to its complexity and the perception that it is a risky investment. The cautious sentiment among traditional investors is visible in the lukewarm response to spot Ether ETFs, even though the technology underpins an ecosystem that facilitates vast amounts of capital and supports thousands of projects worldwide. Brokate notes that large institutional inflows into Ether ETFs may not materialise until there is “greater clarity” over Ethereum’s potential and proven use cases. This cautious outlook reflects a knowledge gap that separates traditional finance professionals from the rapid developments occurring within blockchain and digital asset markets.
Ethereum’s complexity lies in its versatility. Unlike Bitcoin, which serves primarily as a store of value, Ethereum’s blockchain can host a wide range of applications, from lending protocols to gaming platforms. Ethereum’s adaptability makes it more challenging to summarise or evaluate as a single-purpose investment. However, for those willing to explore its potential, Ethereum’s ability to support DeFi, tokenised assets, and even social media platforms positions it as a formidable tool in the shift toward Web3—a decentralised version of the internet where users control their data and interactions. Much like how Amazon expanded beyond books to reshape retail, logistics, and cloud computing, Ethereum could redefine entire sectors by offering a decentralised infrastructure for applications currently managed by centralised companies.
The involvement of prominent institutions further validates Ethereum’s potential. When financial titans like BlackRock choose to operate on Ethereum, they demonstrate a level of confidence in the network’s security, scalability, and potential for growth. By tokenising money market funds on Ethereum, BlackRock is signalling that blockchain technology offers a viable and valuable pathway for traditional assets. This growing institutional interest could gradually shift perceptions, leading to more widespread acceptance and investment. Yet, according to ElDeeb, the journey toward broader institutional adoption will likely be gradual, as short-term investors remain cautious about Ethereum’s volatility and longer-term viability.
Part of the hesitation among investors could be attributed to Ethereum’s current transition to a proof-of-stake model, an upgrade known as Ethereum 2.0. This shift aims to improve scalability, security, and sustainability, addressing some of the network’s historical challenges with high gas fees and slower transaction speeds. As Ethereum 2.0 continues to roll out, its enhanced functionality could help reassure hesitant investors by creating a more efficient and eco-friendly platform. However, like any large-scale upgrade, this transition involves risks and requires time, which could explain why some investors prefer to “remain on the sidelines,” as Brokate suggests.
In the meantime, Ethereum’s reputation as a trusted platform for DeFi applications continues to attract early adopters and industry innovators. Decentralised finance, in particular, showcases Ethereum’s value proposition, providing a system where individuals can lend, borrow, and trade without intermediaries. This model has captured the attention of younger investors and tech-savvy professionals who see DeFi as an efficient, low-cost alternative to traditional finance. As more people turn to DeFi for financial services, Ethereum’s infrastructure gains legitimacy, further cementing its role as a backbone of Web3.
ElDeeb remains optimistic that Ethereum’s applications will eventually speak for themselves as they expand in utility and accessibility. She envisions a future where Ethereum’s wide-ranging applications attract both individual and institutional investors, driving sustained growth. This growth is likely to resemble the path that Amazon took, where gradual adoption led to widespread acceptance and dominance in multiple sectors. Over time, Ethereum could mirror this trajectory, particularly as its smart contracts and decentralised applications continue to mature and become integral to daily digital interactions.
In short, Ethereum’s journey appears to be in its early stages, with untapped potential that may rival the meteoric rise of companies like Amazon. For now, Ethereum’s presence on Wall Street remains understated, yet the network’s development and the adoption by financial giants hint at what could come. With a robust developer base, increasing institutional interest, and proven versatility, Ethereum may very well be the next Amazon—offering a powerful, decentralised solution that could redefine the future of finance and digital infrastructure.
As Ethereum continues to build its foundations, both investors and tech enthusiasts will watch closely to see if it can fully realise its potential. If history is any indicator, the network’s current capabilities are only the beginning, and the scale of innovation possible on Ethereum may ultimately surprise even the most seasoned market observers. For now, however, Ethereum is a hidden giant, much like Amazon once was, poised to emerge as a defining force in the digital landscape.
