Ethereum's Dominance in DeFi and Stablecoins Strengthens with Layer 2 Scaling and High Security

Ethereum is increasingly being recognized as a dominant force in the cryptocurrency ecosystem, particularly in the realm of decentralized finance (DeFi). Ethereum's Layer 2 (L2) solutions are expanding blockspace and vastly exceeding the throughput of alternative Layer 1 (L1) blockchains. The Ethereum network is noted for its robust usage, positive real staking yields, and increasing decentralization. The ecosystem has a supermajority when it comes to stablecoins, and there is a strong belief that DeFi should primarily operate on Ethereum's L1 due to its high security, 100% uptime, and multi-client support. Ethereum's decentralized nature, where custodians are individuals rather than large entities, is also emphasized as a strength. Despite the slow scaling of Ethereum's L1, DeFi is expected to continue coexisting at both the L1 and L2 layers. Ethereum is considered a high-quality liquid asset (HQLA) with productive yield, and there are concerns about stablecoins being blacklisted by Tether or shutdown by Circle. Additionally, the potential for Celestia to make a comeback is discussed.