Ethereum Bets on Low-Risk DeFi as a Sustainable Foundation

• Ethereum Targets Growth in Low-Risk DeFi
• Vitalik Buterin advocates simple payments and loans
• Secure DeFi Overcomes Losses and Strengthens Ethereum Usage

According to Vitalik Buterin, the future of Ethereum (ETH) doesn't depend on passing trends like NFTs or meme coins, but on something more stable: low-risk decentralized finance (DeFi) solutions. In a new essay, the co-founder compared this strategy to how search has become Google's primary source of revenue, supporting all of the tech giant's other services.

For Buterin, Ethereum doesn't need hype cycles to maintain its relevance. The key is to build a solid foundation of reliable payment systems, savings accounts, collateralized loans, and synthetic assets that will stand the test of time. These mechanisms not only build trust among users but also keep ETH locked up and guarantee the flow of fees within the network.

Low-risk defi can be for Ethereum what search was for Google https://t.co/6xIxCrOToQ

- vitalik.eth (@VitalikButerin) September 20, 2025

The numbers demonstrate the impact of this evolution. In 2019, losses in Ethereum's DeFi sector represented more than 5% of the total value locked. By 2025, this figure had fallen to virtually zero, indicating safer protocols and more controlled risks. Buterin highlighted that, for millions of people, traditional finance already poses greater risks than those found in today's DeFi.

Beyond payments and savings, new opportunities emerge as the ecosystem matures. These include reputation-based lending, which eliminates excessive collateral, predictive markets used for hedging, and so-called "flatcoins," stable assets tied to inflation rates. These proposals are based on the more reliable foundations that have been developed in recent years.

"Low-risk DeFi doesn't need to be revolutionary, it just needs to work everywhere and consistently," the co-founder stated. Buterin's vision suggests that Ethereum's greatest utility lies in its ability to deliver simple and effective solutions to millions of users. If realized, this approach could be the key to making the network sustainable and essential in the global cryptocurrency market.