Ethereum’s Biggest Mistake (and How to Fix It) | Sam Kazemian

Has Ethereum, the most important smart contract platform in crypto, lost its way when it comes to ETH the asset?

In this must-listen Bankless episode, we dive deep with Frax founder Sam Kazemian into Ethereum’s greatest underappreciated dilemma: the decoupling of ETH the asset from Ethereum the technology — and how that shift has quietly eroded ETH’s valuation against Bitcoin.

Sam draws a sharp distinction: Ethereum’s technological roadmap — the world computer, the decentralized settlement layer, the Infinite Garden — is thriving. But ETH, the native asset, has suffered because the community has not socially coordinated on a clear, unified definition of what ETH is.

Following the implementation of EIP-1559 and the transition to Proof of Stake, ETH shifted from being seen as a "digital commodity" akin to Bitcoin, toward a "discounted cash flow" (DCF) asset, where future burn revenues became the primary lens through which its value was assessed. In this view, ETH is increasingly seen like an equity or tech stock — which inherently anchors its valuation to its cash flows, rather than its role as a sovereign store of value.

Sam argues that this unintentional rebranding was a mistake. The Ethereum community, ETF issuers, analysts, and builders have all gravitated toward emphasizing ETH's cash flow and burn mechanics, effectively setting ETH’s perceived valuation at the floor, rather than unlocking its upside potential as a durable, scarcity-driven store of value.

The consequences? ETH has severely underperformed against BTC since 2021. Worse, if left unchecked, the community risks building the most important decentralized technology stack — while letting Bitcoin dominate as the supreme digital money.

The solution, according to Sam, is not merely "better marketing." It's about rebuilding internal social consensus around ETH the asset. Ethereum must adopt a strong, commodity-like identity for ETH — much like Bitcoiners rallied around the 21 million hard cap — while maintaining the open, pragmatic, product-focused ethos for Ethereum the technology.

If we want ETH to be valuable in a future of tokenized assets, DeFi, and crypto-native finance, we must treat ETH as sacred. That means:

Separating the conversation about Ethereum’s technical progress from ETH’s valuation.

Emphasizing ETH as a store of value first — not merely as a DCF-driven asset.

Socially coordinating toward a common, strong narrative around ETH, similar to Bitcoin’s maximalism.

Understanding that decentralized, digital assets are socially constructed — and that clear social definitions directly impact real-world value.

This episode isn’t just a diagnosis of Ethereum’s recent struggles — it’s a call to arms for the community. It's time to decide: will ETH remain an underappreciated tech stock or rise to become what it was always meant to be — the foundation of the decentralized economy?

Tune in for an essential discussion that could shape the future of Ethereum and ETH itself.