According to U.Today, Ethereum (ETH) is surpassing its primary role as the second-largest digital currency by market cap, outperforming some S&P 500 companies in terms of buyback yield. As per the data from crypto analytics platform Token Terminal, Ethereum currently ranks 16th in buyback yield, outshining notable companies such as Tesla Inc and JPMorgan Chase.
This achievement indicates that Ethereum's capabilities extend beyond its function as a smart contracts enabler. It also demonstrates its potential to compete as a finance-based tech entity. An interesting observation made by Token Terminal is that Ethereum, only about nine years old, is competing with firms on the list that have an average age of 44 years. For instance, JPMorgan Chase was established in 1799, while Ethereum emerged in 2015.
Token Terminal highlighted the profitability of internet-native businesses, particularly when their innovations are allowed to flourish. Each company on the buyback yield list brings something unique to the table. While JPMorgan is known as the largest bank in America, Alphabet Inc., which tops the list, is a tech and Cloud Services giant.
Ethereum operates as a smart contract enabler, leading the way for innovators to create decentralized applications. This has helped it grow its decentralized finance (DeFi) Total Value Locked (TVL) to $92.74 billion. Besides Bitcoin (BTC), Ethereum is the second-most-backed crypto project in terms of whale holdings. As the de facto leader in Web3 adoption, Ethereum is undergoing a series of upgrades to enhance its functionalities in the market.