Fidelity compares Ethereum’s network growth and activity to a real-world economy.
Fidelity, the third-largest asset manager in the U.S. with $5.9 trillion of assets under management, said in a report that native blockchain currencies serve as a unit of account and medium of exchange of a network, similar to the function currencies have in nations.
The report specifically looks at Ethereum (ETH) as an example, proposing that ETH acts like base money used to pay for transactions and secure the network. It also outlines how blockchain activity can be measured like a country’s gross domestic product (GDP).
“It is more appropriate to compare decentralized blockchains to sovereign nations and their economies rather than web2 companies or products because of the embedded currency,” report authors Paul Lang and Anais Rachel wrote.
Classic Economic Framework
Fidelity applies a classic economic lens using consumption, investment, government spending, and net exports, to quantify blockchain economic activity.
Gas fees, application revenue, NFT sales are used to measure consumption. Government spending is equivalent to grants and ETH issuance for network security. Investments are analogous to staking and liquidity into DEX pools. Net exports are measured in cross-chain activity.
Since 2018, the report notes, citing data from Artemis that Ethereum has recorded increased usership in terms of active wallets and associated transactions. As of 2025, daily active addresses hover just above 2.5 million, while ecosystem transactions near 20 million. Moreover, as of 2024, ETH made up 74% of trading volume on Ethereum decentralized exchanges (DEXs), up from 68% in 2023, per Flipside data.
Resiliency Via Many Industries
Fidelity says this mix of activity is similar to how a country’s economy depends on multiple industries, not just one. Specifically, the report notes that 47% of Ethereum’s network fees come from finance-related apps, 25% from trade, 22% from other categories, and 6% from arts and entertainment. This sector diversity, Fidelity argues, helps make Ethereum’s digital economy more stable and resilient.
To make its point, Fidelity described a scenario between two theoretical countries with equal GDP: “Country A is entirely reliant on producing a singular good (such as textiles) whereas Country B demonstrates economic output across 10 different industries,” the report reads. “Clearly, the economy of Country B would be more resilient to negative growth surprises from any one industry. Similarly, diversified demand to register activities on a blockchain provides for a more robust digital economy.”
ETH Value Set by Activity
Fidelity’s report also explains that blockchain assets like ETH get their value from people using them to access services. But unlike regular money, ETH’s value isn’t controlled by central banks or credit. It’s set by how active the network is and by people helping run and secure it.
“Ethereum’s design allows for a direct relationship between economic activity and net issuance and impacts all ETH holders regardless of whether they are stakers,” the report reads. It further notes that while blockchains vary in design, this digital economy framework can apply across different networks.
“Digital economies and their associated currencies allow investors to diversify their store-of-value exposures while participating in growth of the local economy,” the report concludes. “As within traditional economies, some of these currencies offer better store-of-value characteristics and others better growth potential.”
At the time of publishing, ETH, the second-largest crypto asset by market cap, is up nearly 6% on the day, trading around $2,968 after breaking above $3,020 earlier this morning.
