The Ethereum community under values ETH as a store-of-value (SoV). When in fact, DeFi is quite useless without a crypto-native SoV. As you rightly point out, a highly liquid, high market cap ETH has been vital for all of the high-traction DeFi protocols we’ve seen, this will remain the case. This is not an oddity, every financial economy in history has required bootstrapping via an SoV. Even USD was backed by silver and gold.
Bitcoiners understand this. And they ardently argue that BTC is a SoV. But this argument works for ETH too. ETH has all of the most important SoV attributes of BTC, digital scarcity, lowering issuance, strong liquidity. Of course BTC has a stronger SoV meme at the moment, but its early & memes change. It’s already obvious ETH is the reserve SoV for the Ethereum economy and maintains some monetary premium outside of it.
So I think we should reinforce the SoV value proposition of ETH. The market cap and liquidity of ETH is the bandwidth for the DeFi economy, it is the base money layer. Importing other SoV assets into the Ethereum economy won’t fill the void, each comes with counter-party risk (WBTC trust BitGo, USDC trust Coinbase, STOs trust issuer). For DeFi banking to stand on it’s own, it needs a SoV that’s 100% crypto native.