Ethereum is no longer just a speculative play. Bernstein analysts say it’s becoming the backbone of a new financial system. With the passage of the GENIUS Act and Circle going public, stablecoins are gaining legitimacy, helping shift blockchain from hype to utility. Ethereum is at the center of it all. Over 60% of USDC and nearly one-third of $25 billion in tokenized assets operate on its network. BlackRock’s $2.8 billion tokenized fund runs on Ethereum too. ETH is up 45% in two weeks, not because of speculation, but growing demand for real-world use. Staking is rising as well. Around 30% of ETH is now staked, compared to 24% in January. Staking yields, fueled by network activity, currently sit at 2.9%. More transactions mean higher fees, which boost yields, encouraging more staking—a cycle Bernstein calls a positive feedback loop. Institutional interest is also picking up. Ethereum ETFs brought in $2.2 billion last week, nearly matching Bitcoin’s $2.4 billion. On one day, ETH ETF flows even topped BTC’s. BlackRock is seeking to include staking yields in its ETH ETF, turning ETH into both a growth and income asset. With tight supply, growing adoption, and rising institutional interest, Ethereum is positioned for long-term strength.