ETH Price Reflects Security Value of Ethereum Network

Ethereum’s Proof-of-Stake creates a security budget tied to the total staked ETH. To protect the network, ETH is priced so that the cost of an attack outweighs potential profits. Observations show this balance holds, meaning markets effectively price in the network’s security needs. This explains the link between ETH’s price and the total value secured on Ethereum, providing a natural floor for ETH’s valuation based on the economic security of its ecosystem.