Ether (ETH) is the fuel for executing Ethereum transactions. When you interact with an EVM, you must pay the computation. That computation is calculated in gas, and gas is ONLY paid in ETH. Many Ethereum users complain about having ERC-20 tokens but cannot move them since they don’t have the base currency ETH. Whereas in the UTXO model with services like liquid.taxi, users can transfer assets or interact with smart contracts by covering fees with the same token from the amount they transact, without depending on the base currency.

Ethereum users pay for the computation, regardless their transaction succeeds or fails. Even if it fails, the miners must validate and execute the transaction, which takes computational power. Users must pay for that computation, just like they would pay for a successful transaction. This is not only inefficient in terms of IBD time, storage, computation, and bandwidth, but also an awful UX from the end-users perspective. UTXO model is not stateful; failed transactions cannot end up in a block, and users can hand over zero-conf assets. This brings an overall user-friendly user experience.

From CoinJoin to MuSig aggregations, to confidential transactions UTXO model provides a higher level of privacy in every way possible. The account model is generally detrimental to privacy since the account is tied to a single owner and anyone can track the address of who has been paid.