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ethereum

Ethereum, Not Bitcoin, May Be The Future’s Preferred Store Of Value – VanEck Report

Ash Tiwari
by Ash Tiwari
1 month ago
·
Posted in Ethereum
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

In its July 2025 crypto monthly recap report, global investment management firm VanEck suggested that Ethereum (ETH) could emerge as a superior store of value compared to Bitcoin (BTC). The report pointed to ETH’s lower inflation rate in recent months relative to BTC, alongside its growing utility within decentralized finance (DeFi).

Ethereum A Better Store Of Value Than Bitcoin?

In recent years, a growing number of companies have diversified their treasuries by allocating capital to digital assets – most notably Bitcoin. However, emerging trends show that corporations are also beginning to accumulate Ethereum, recognizing its potential as both a yield-generating and deflationary asset.

Related Reading: Ethereum Treasury Adoption Booms: 550,000 ETH Acquired By Corporates In A Month

VanEck’s report emphasizes that while Bitcoin’s finite supply and predictable issuance policies make it a strong candidate for a store of value, Ethereum provides greater financial flexibility. In particular, ETH holders can stake their assets to earn rewards, collect network revenue, and participate in DeFi protocols to generate additional yield.

The report also highlights key differences in the monetary policies of both networks. Ethereum’s initial issuance rate at launch was 14.4%, compared to Bitcoin’s 9.3%. However, two major policy changes have since dramatically reduced ETH’s inflation rate – bringing it below Bitcoin’s.

The first was Ethereum Improvement Proposal (EIP-1559), implemented in August 2021, which introduced a mechanism to “burn” a portion of transaction fees. This effectively created deflationary pressure during periods of high network activity, reducing the total supply of ETH.

The second transformative event was “The Merge” in September 2022, when Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism. This change drastically reduced issuance – from approximately 13,000 ETH/day to around 1,700 ETH/day – by eliminating the need to pay miners.

Following these changes, ETH’s inflation rate fell below Bitcoin’s for the first time in March 2023. Since then, ETH’s supply has grown by only 0.2%, compared to Bitcoin’s 3%. The report states:

Total supply of ETH fell between October 7th, 2022, and April 4th, 2024, moving from ~120.6M on to a low of ~120.1M on, achieving an annualized (-0.25%) inflation rate over the period. Since that time, ETH burn has been reduced due to the increase in Ethereum transaction throughput, and the network has accrued (+0.5%) in additional supply. Regardless, over that same period, BTC supply has increased (+1.1%).

eth
Source: VanEck

Companies Flocking To ETH Accumulation

Over the past month, several companies have unveiled Ethereum-focused treasury strategies. For instance, cryptocurrency firm Bit Digital recently crossed 120,000 ETH in total holdings. 

Related Reading: Ethereum Treasury Strategy: BTCS Seeks $2 Billion Raise For Crypto Accumulation

Meanwhile, Bitcoin mining firm BitMine Immersion Technologies revealed that its ETH holdings had surged past 833,000 tokens, making it the largest known corporate holder of the digital asset. At press time, ETH trades at $3,643, up 2.3% in the past 24 hours.

ethereum
Ethereum trades at $3,643 on the daily chart | Source: ETHUSDT on TradingView.com
Featured image from Unsplash.com, charts from VanEck and TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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