If Ethereum were a country, what would its GDP be?

Smart Contract-based Block chains like Ethereum are emerging cyber nations that manifest themselves not only through the technology stack, but also through currency jurisdictions and reserve currencies, shared values and beliefs, shared histories and cultures, and sometimes foundational myths. This article is derived from an article written by Diario and compiled by PANews. (Synopsis: Ethereum is not saved?) Solana Raydium volume overtook Uniswap and ETH for two consecutive months with a net outflow of $1.2 billion in a single month) (Background added: Senior Ethereum developer jumped to Solana: frustrated with Ethereum... Community response: SOL is just a paper tiger with deep pockets) Traditional Block Chain network valuation methods tend to be misplaced, treating the Block Chain Network as a business and using formulas designed for calculating Fair stock prices, which are based only on very narrow considerations. This approach is fundamentally flawed. Block chains, especially smart contract platforms like Ethereum, are not enterprises. As I've explained in previous articles, they are emerging, sovereign digital economies with their own reserve currencies. Not only do these currencies serve their native networks, but they can also act "overseas" as stores of value (SoV), unit of quotation (UoA), and medium of exchange — in the case of $ETH, whose role is not limited to the original mainnet, but also permeates and becomes the reserve currency in multiple extended suite networks (L2) that fall under their monetary jurisdiction and thrive even beyond these borders (similar to how the dollar operates today). In addition, the Proof of Stake Block Chain (POS) introduces a mechanism similar to bonds, where participants stake assets to protect the network in exchange for future returns. These dynamics reflect the structure of the nation-state economy, financial instruments supporting its defense, and current and future operational stability. In other words, smart contract-based blockchain networks like Ethereum are becoming emerging cyber states – digital states – that manifest themselves not only through the technology stack, but also through monetary jurisdictions and reserve currencies, shared values and beliefs, shared histories and cultures, and sometimes foundational myths. Gross Decentralized Product To meet the demand for a more appropriate valuation framework in these emerging digital economies, we propose the Gross Decentralized Product (GDP), which not only captures the total amount of money. It is also possible to capture the economic activity of the Block chain ecosystem. Unlike the gross domestic product (GDP) of traditional economies, Decentralization covers a much broader spectrum: it takes into account economic activity generated within the ecosystem and monetary base, as well as market caps built on specific blockon-chain protocols, Decentralization applications, and cultural assets. The rationale behind this extension framework lies in the formalization shift represented by the Block chain economy. Despite the similarities between these ecosystems and traditional national economies, their fundamental difference is that every aspect of the economy becomes fluid and has some degree of monetization. In this formalization, outputs and factors of production are not only part of the economy, they also become forms of "money" that can be traded and monetized on on-chain. Therefore, the most effective way to invest in such Block chain economies is through their native currencies. These currencies support all economic activity on the Blockon-chain through programmed supply caps. Their value is tied to the rise of the system, which is reflected in the rising market cap. Over time, the native assets of the most successful Block Chain economies will generate a monetary premium, becoming the most primitive form of Collateral in their ecosystems, gaining store of value (SoV) reserve asset status in the broader encryption field and even in the real world. Below, we outline the key metrics that make up the framework, using Ethereum and other leading Block chain networks as examples. Note: All materials used in this article are from Token Terminal, Decentralized FinanceLlama and Non-fungible Token Price Floor, as of November 26, 2024. 1⃣ Market Cap: A measure of monetary sovereignty The Market Cap of the native currency of the Block chain can serve as a proxy for its monetary base and economic size, similar to the role of the M2, M3 and M4 supply in the United States against the US dollar. As mentioned earlier, sometimes the monetary base is not limited to the Mainnet of the Block chain, as its native currency becomes the reserve of a series of network extension suites (such as ETH's L2s/L3s), and even other Blockon-chains outside the same currency jurisdiction, which can be transferred through bridges. It should be noted again that since the monetary base (supply) of the Block chain cannot be increased at will, the phenomenon we observe is that both when its native economy expands, and when its native currency transcends its own network boundaries and colonizes foreign economies, it is an increase in its legal value to maintain and support economic rise. That's why every time we refer to the monetary base, we mean the Market Cap. If we take the simplest monetary aggregate (M1/M2) as an indicator, then the top Block chain economies are: BTC: $1.82 trillion ETH: $400 billion SOL: $108 billion BNB: $90 billion TRON: $16 billion Including LST and LRT tokens here is like measuring the M3 or M4 Money Supply of a smart contract-based Block chain economy. Taking ETH as an example, M1/M2 is $420 billion, M3 is $467 billion (LST), and M4 is $481 billion (LST + LRT). 2⃣ Total Locked Value (TVL) :D Capital Utilization in ecentralized Finance TVL measures the value of assets locked in the Decentralized Finance protocol. Critics question its utility, but it is still a strong indicator of active economic activity in the Blockon-chain. For Decentralization economies, this indicator is similar to tracking the scale of Financial Intermediary activity in the national economy. Not only that, but it also speaks to the reliability and security of the currency jurisdiction, as well as its ability to attract investors who want to not only make short-term transactions, but also store their wealth for a longer period of time. Top Block Chain Economies by TVL: ETH: $66.6 billion SOL: $9.25 billion TRON: $8 billion BNB: $5.5 billion BTC: $4.4 billion 3⃣ L1 transaction fees: income from economic activity The fees generated by the Block chain reflect the importance users place on accessing their services. These fees represent the "tax revenue" of the Block chain and are credited directly to its GDP. Having a strong and sustainable expense market is fundamental, and it must strike the perfect balance in order to provide global accessibility for users and protocol/application deployers, maintain operational stability and network security, while ideally offsetting additional currency issuance. Otherwise, you could end up in a dysfunctional system, as we see today in heavily indebted economies. Top Block Chain Economies by Annual Fee Income: ETH...