The phrase “generational wealth” gets thrown around a lot in crypto, but it generally refers to what you can get from an asset that has enough gas in the tank to multiply in value many times over, even if it takes a long time. Ethereum (CRYPTO: ETH) is a natural candidate for being that kind of wealth-building investment, as it has already stood the test of time and made many of its early investors quite rich. Today, with a $280 billion market cap, Ethereum is the second-largest cryptocurrency.
But can it actually deliver on its big growth potential by becoming a financial technology that’s widely used for real-world applications?
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
Real-world use cases tend to prefer faster chains
One problem right off the bat is that two major real-world use cases for crypto have drifted away from Ethereum.
In the domain of payment processing and stablecoin settlement, Solana (CRYPTO: SOL) captured 32.6% of weekly adjusted USD stablecoin volume in early April 2026, putting it well ahead of Ethereum’s 27.8%. There’s not much subtlety to explain here; Solana’s typical transaction fees are well under $0.01, whereas they’re $3.90 for a simple token swap on Ethereum as of April 27. So traffic for this application is gravitating to where it’s the cheapest, which isn’t on Ethereum.
There’s a very similar parallel story in another application area, decentralized physical infrastructure networks (DePIN). DePIN services enable people to coordinate the deployment and maintenance of physical infrastructure like wireless hotspots, graphics processing unit (GPU) rigs, or sensors. The issue is that two of the segment’s flagship projects migrated from Ethereum to Solana for throughput and fee reasons over the last couple of years. That detracts from the idea that Ethereum will become a piece of fintech that average people will ever need to interact with a lot, such that the price of the coin rises enough to create generational wealth.
This is still a good investment
Ethereum will probably not make vast sums of money for anyone on the basis of widely distributed and consumer-facing applications. It’s too expensive and slow for those purposes.
Nonetheless, Ethereum currently has a commanding lead in tokenized real-world assets (RWAs), of which it has $16.6 billion on its chain for distribution. Most institutional blockchain applications still default to it because of the superior liquidity available on its network, and its very large population of developers. So it’s handy for some real-world purposes, like asset management, even if those uses are largely invisible to the public.
