Ethereum: Deflationary store of value with dividends?

nick sharek of Rivit Capitalthe venture capital firm spelled out the bullish case. Ethereum (CRYPTO: ETH) claims it could become a dominant force in the future of finance.

what happened: Speaking at the Sohn Conference Foundation event, he focused on Ethereum's potential as a platform for tokenization, DeFi, and even new stores of value.

Tokenization: the engine of innovation

Sharek highlighted the concept of tokenization, which is the process of converting assets into digital tokens on a blockchain network.

He argued that while tokenization is not new, the application of tokenization on Ethereum is creating a “global computing network where anyone can tokenize and program any asset.”

He believes this will lay the foundation for “an independent property rights system on the Internet.”

Ethereum Ecosystem: The Power of Numbers

To demonstrate Ethereum's traction, Sharek pointed to impressive statistics surrounding the network. These include:

• $88 billion stablecoin: We highlight the presence of tokenized dollars with enhanced mobility compared to traditional options.
• $13 billion for digital art: Discover the growing adoption of networks in the world of digital collections.
• Over $100 billion in tokenized collateral and financial contracts: Highlights the role of networks in facilitating decentralized financial applications.
• User swaps are close to $1 trillion: Demonstrates growth in network transaction volume and user base

Also read: 'Crypto Mum' Hester Peirce: Regulation should take a 'productive path'

While acknowledging Bitcoin's established status as a store of value, Shalek suggests that Ethereum has its own advantages.

• Deflation model: Ethereum’s tokenomics include dwindling supply, which can increase its value over time.
• Dividend: The network generates fees that are used to buy back and distribute tokens to holders, creating additional incentives for investment.

Ethereum’s untapped potential

Shalek highlighted the potential for exciting but unexpected applications to emerge on the Ethereum network.

He mentioned the potential for tokenization of specialized AI models and the emergence of intelligent agents to manage assets.

Shalek concluded by encouraging the audience to consider Ethereum as a long-term investment opportunity with strong financial incentives.

what's next: The Son conference highlighted the ongoing debate surrounding the potential of blockchain technology and DeFi.

For those looking to learn more about these topics and their impact on the financial landscape, the Benzinga Future of Digital Assets conference on November 19 may be a valuable resource.

The event brings together industry leaders to discuss the future of digital assets, including Ethereum's role in shaping the future of decentralized finance.

Read next: Crypto analyst Benjamin Cowen warns of summer correction amid Bitcoin selloff

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