Jeff Dorman: Why ETH as a Store of Value Doesn't Add Up

Jeff Dorman argues that ETH’s value does not flow cleanly from Ethereum’s ecosystem because the chain does not capture most of the revenue created on top of it. He says layer-1 tokens are usually priced on social value more than on financial value or utility, and claims Ethereum’s current market cap implies far more tangible value than the network actually collects in fees. In his view, the token is mostly supported by “opium” or meme-like social belief rather than cash flows.

He pushes back on Vitalik Buterin’s idea that ETH should be framed as a store of value instead of a fee-burning token. Dorman says that if a blockchain wants token value to accrue, it needs to own the full stack: the chain, the DEX, and the stablecoin. He points to Hyperliquid as the cleaner model because it captures both trading and stablecoin economics, while Ethereum leaves DEX and stablecoin revenue to other businesses.

Dorman also argues that the most durable crypto growth is happening in stablecoins and payments, tokenized assets, and DeFi, not in layer-1 token appreciation. He says Bitcoin is a separate anomaly, but for ETH and SOL, the real question is whether anyone can quantify how much activity would justify their valuations. Without that, he sees the store-of-value thesis as ungrounded.