Bitwise CIO Matt Hougan: Ethereum (ETH) Solidifies Role as Core Settlement Layer for On-Chain Finance

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, has articulated a compelling vision for Ethereum's future, positioning it as the foundational settlement layer for the burgeoning on-chain finance ecosystem. In his analysis, Hougan emphasizes that Ethereum is undergoing a critical transition, cementing its role not merely as a platform for decentralized applications but as the core financial infrastructure for settling transactions across a diverse array of blockchain-based financial instruments. Hougan highlights the explosive growth of real-world asset (RWA) tokenization, decentralized finance (DeFi) protocols, and layer-2 scaling solutions as key drivers. These developments, he argues, are funneling immense value and transactional activity onto the Ethereum blockchain, reinforcing its network effects and security. The narrative shifts from "Ethereum as a world computer" to "Ethereum as the global settlement layer for finance," a more focused and potentially more valuable role. This evolution underscores ETH's fundamental value proposition as the native asset required to power and secure this expansive financial network, attracting increased institutional interest and investment.