10 Thoughts on Ethereum Momentum and Web3 Adoption

10 Thoughts on Ethereum Momentum and Web3 Adoption

Episode Transcript

(00:00):
And so I am slowly, let'ssay, digging my way out of my
hatred for ethereum. So as I'vebeen noodling on ethereum, as you guys
well know, and I've put togethera list of ten things. Ten current

(00:23):
let's just say, wind in thesales of ethereum, as we are getting
closer to the ethereum ETF and maybeeven yes, so let's talk about it.
Let's just jump right in, guys, no fanfare, here we go.
Number one. When it comes tothe momentum of ethereum, when it

(00:47):
comes to the growth of ethereum,when it comes to the tailwinds for ethereum.
Number one, Coinbase is pushing itsusers of over one hundred million verified
users on chain to Ethereum via BaseL two. If you haven't looked that
up, you should. Number two, the Ethereum Foundation continues to execute the

(01:10):
merge, the Shanghai upgrade EIP fortyeight, forty four, et cetera,
et cetera. Yes, I've beenkeeping up on it, guys. The
network is scaling in an incremental andmodular format, which is actually pretty important.
The modularity allows for flexibility. Numberthree network effects Ethereum dominates in terms

(01:30):
of developers, developer tooling, standardization, liquidity value locked users at about one
hundred and twenty million right wallets andobviously fees. Number four token economics.
Ethereum burns or buys back approximately eightypercent of user transactions, which can offset
new issuance and consensus rewards pay devalidators. The token had an annualized deflation of

(01:56):
negative point three eight percent in quarterone. Something to note Number five yield,
Ethereum offers a real yield driven byits usage user fees plus the network
and sensors rewards, which is offsetby buybacks. So the let's just say,
monetary incentive to stake and to useEthereum is still pretty good. Number

(02:21):
six Security and pseudo decentralization. Pera recent study by coin Metrics, it
would be more costly to attack ethereumthan Bitcoin, though both would be impossible
to attack. In my opinion,I just think it's a foolish errant.
Number seven. Ethereum is generally uncorrelatedto US securities, something that I've been

(02:44):
looking into and seeing the trends inhow this works. It doesn't seem to
be ridiculously correlated to US securities.Which is always a good thing. Number
eight applications Today from my research,there are over seventy three hundred apps running
on ethereum. That's a lot ofapps. Pretty good. Doesn't beat the

(03:06):
app store with what seven thousand appscoming out a day something like this,
but it does have a large moat, a large network and entrenchment. Number
nine capital efficiency. There is moreetherium on chain today providing services, liquidity
used as collateral, et cetera thanat any point in the network's history.

(03:29):
I had to look this up.And Number ten, the supply of ethereum
held on exchanges is currently at itslowest point since two twenty sixteen, which
means people are hoddling it and maybe, just maybe, as they hondle it,
it will continue to go up invalue and utility. Hopefully. You

(03:50):
see as you guys well know,because you guys will walk with me through
lots of different experience experiments and lotsof different navigations of the markets. You've
seen me deep dive into crypto,bitcoin obviously, bitcoin mining over a decade,
now, bitcoin over a decade.Now, they see me dive into
AI these types of things like Iget rowdy, I get deep down the

(04:15):
rabbit hole, and guys, Iam committed to really understand the deeper value
propositions of ethereum and trying to keepmy heart open as I am. Yeah,
that's it, man, trying tokeep my heart open because I was
burned, as you guys will know, I was burned by ethereum. I

(04:36):
was burned by metallic The philosophical tenetsthat were so espoused were destroyed and they
were trampled on. And so Iam slowly, let's say, digging my
way out of my hatred for ethereum. And like I said in my last
video, mostly because the monetary incentiveand unit economics of staking are so good,

(05:03):
maybe you should ask me about it,