TLDR
- Vitalik Buterin says low risk DeFi can anchor Ethereum like search anchors Google.
- Ethereum’s DeFi TVL has rebounded above $100B for the first time since 2022.
- Ethereum’s on chain revenue dropped 44% in August to $14.1M despite ETH gains.
- Buterin promoted flatcoins and basket currencies to stabilize Ethereum’s economy.
Ethereum co-founder Vitalik Buterin has suggested that low-risk decentralized finance could serve as a stable revenue source for the network. He compared it to Google Search, which provides consistent revenue that supports the company’s broader operations.
Comparing Ethereum To Google’s Business Model
In a blog post published on Saturday, Vitalik Buterin argued that Ethereum needs a stable economic foundation. He said that low-risk decentralized finance could play this role, similar to how Google Search supports Google’s entire ecosystem.
“The revenue generator does not have to be the most revolutionary or exciting application of Ethereum,” Buterin wrote. “But it does need to be something that is at least not actively unethical or not embarrassing.”
He suggested that lending protocols offering modest but consistent returns on stablecoins could provide reliable income. Aave, for example, offers rates around 5% for assets such as USDT and USDC, while higher-risk assets can reach over 10%.
Bridging The Divide In Ethereum’s Ecosystem
Buterin observed that Ethereum’s community is often split between speculative products and applications aligned with its founding values. NFTs and memecoins have generated high transaction fees but little satisfaction among long-term supporters. Nonfinancial apps, on the other hand, often lack revenue streams.
He argued that low-risk DeFi could provide balance by supporting both financial strength and cultural principles. By offering accessible lending, stable savings, and safer products, Ethereum could sustain its ecosystem without leaning on speculative hype.
Ethereum’s DeFi sector has recovered strongly in 2025. Total value locked recently surpassed $100 billion for the first time since early 2022. Regulatory clarity, including the Digital Asset Market Clarity Act in the United States, has renewed global interest in DeFi services.
Revenue Concerns Following On Chain Decline
The blog post comes as Ethereum faces questions about economic sustainability. Data shows on-chain revenue fell 44% in August to $14.1 million, down from $25.6 million in July. This decline came even as ETH reached a new all-time high of $4,957.
Lower revenues are partly the result of the Dencun upgrade, which reduced costs for layer-2 transactions but cut into base-layer fees. Analysts say these were some of the weakest figures since early 2021, raising concerns about Ethereum’s value proposition.
Some critics argue that falling fees weaken ETH’s role as a store of value. Others believe that reduced costs will drive broader adoption and establish Ethereum as a key financial infrastructure.
Looking Beyond Lending To Broader Stability
Buterin also encouraged exploration of new tools beyond simple lending markets. He supported basket currencies and flatcoins, which are pegged to consumer price indices or multiple fiat currencies. These could provide users with stability while reducing reliance on the US dollar.
He contrasted Ethereum’s potential with Google’s reliance on advertising. Despite Google’s contributions to open-source tools, Buterin argued that its ad model compromises user privacy. “Ethereum has the potential to do much better,” he wrote. Protocols such as Aave, Compound, and liquid staking platforms like Lido and Rocket Pool are already attracting long-term users.
Insurance services such as Nexus Mutual provide additional security, addressing risks from smart contract failures. With institutional investors seeking yield and cautious savers looking for safer options, low-risk DeFi could become Ethereum’s core foundation. If successful, it may give the network the stability needed to support broader innovation for years to come.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
