Podcast Summary
Bullish on Ethereum: Experts Reiterate Their Stance: Experts predict Ethereum's upcoming scarcity and catalyzing events will lead to significant price increases, emphasizing the importance of passive income through platforms like Gemini and the potential of Balancer in DeFi.
The panel on The Bankless Podcast, featuring David Hoffman and three experts, reiterated their bullish stance on Ethereum (ETH) six months after their initial discussion. They believe that the world is still not bullish enough on ETH due to upcoming scarcity supply shocks and catalyzing events like EIP 1559 and the advent of Decentralized Autonomous Organizations (DAOs). The panelists, who accurately predicted Ethereum's price surge, emphasized that the story of Ethereum is far from complete, and less than 10,000 people may be aware of the significant developments to come. This episode serves as a compelling case for why one should be bullish on Ethereum, even though short-term price predictions are uncertain. The panel also highlighted the importance of earning passive income on crypto assets through platforms like Gemini and the potential of Balancer as a powerful automated market maker in DeFi.
Ethereum Bulls Discuss Price Predictions and DeFi's Future: Ethereum bulls discuss their optimism for Ethereum's future, with price predictions ranging from $4,000 to $25,000, and a focus on DeFi's potential to become the primary source of liquidity.
The Ethereum bulls are back with renewed enthusiasm and price predictions for the cryptocurrency. Six months after their last discussion, Ryan Selkis and Damian Bruce of Bankless welcomed Ethereum Bull and advisor Anthony Sasano, and new guest Cyrus Unesi, a former Maker Risk Management Advisor and NFT dealer, to talk about the bull case for Ethereum. The group discussed the success of Bankless's liquidity bootstrapping pool using BAP t-shirts, Balancer's powerful new features for generating yield in DeFi without sacrificing liquidity, and Balancer's mission to become the primary source of liquidity in DeFi. They also reminisced about their previous bull case discussion and shared their updated price predictions. Anthony, who previously predicted a price range of $4,000 to $20,000, was pleased to have exceeded the lower end of his prediction. Ethereum Bull reiterated his long-standing target of $10,000. Cyrus, the new addition to the group, predicted a bull run that could reach $25,000 or even higher. The group also acknowledged that Eric Connor, who had previously predicted a price target of $25,100, was proving to be correct, although he was unable to join the discussion this time around. Overall, the Ethereum bulls remain optimistic about the future of Ethereum and the broader DeFi space.
Mainstream adoption of Ethereum and Ether through NFTs: In the last 6 months, Ethereum and Ether have gained mainstream attention and adoption through NFTs, attracting new participants and increasing their perceived value as a currency or store of value.
The last 6 months have seen significant growth and mainstream adoption of Ethereum and Ether, particularly through the rise of NFTs. This has brought in new participants to the crypto market who were previously uninterested or unfamiliar with crypto. Ethereum, once seen as a niche asset, has become more mainstream and is now being discussed alongside Bitcoin by institutional investors and YouTubers. The price of Ethereum saw a dramatic increase during this period, reaching new highs before experiencing turbulence. The adoption of Ethereum for NFTs has also illustrated its use as a currency or store of value, making it more understandable to newcomers. Overall, the last 6 months have seen Ethereum and Ether enter the mainstream and gain significant traction in the crypto world.
New users joining Ethereum ecosystem through NFTs and DeFi fueling ETH adoption: New users entering Ethereum via NFTs and DeFi drive ETH adoption, justifying high gas fees and making ETH an essential tool for accessing innovative use cases.
The surge in Ethereum's adoption and subsequent price rise over the past six months can be largely attributed to the influx of new users entering the ecosystem through Non-Fungible Tokens (NFTs) and Decentralized Finance (DeFi) applications. These users, in order to participate in these emerging markets, were required to use Ether (ETH) not only to purchase NFTs but also to pay gas fees. The high gas prices, despite being costly, were justified due to the perceived value of the transactions taking place on the network during the market's peak. As a result, ETH became an essential tool for accessing these innovative use cases, acting as a social cohesion tool and a marketing vehicle for Ethereum. With the recent success of DeFi projects, improved user experience, and increasing institutional interest, Ethereum is now being used for more than just speculation at the base layer. The user growth and Total Value Locked (TVL) have attracted institutional attention, leading to a sense of "institutional FOMO" and a potential narrative shift in the perception of Ethereum as a legitimate and valuable asset.
ETH's shifting narrative as a valuable asset: Institutions and notable figures expressing bullishness towards Ethereum and ETH, the ultrasound money meme, growing importance of DeFi, increasing liquidity, and changing market structure have led to a new narrative that views ETH as a valuable, natively programmable asset.
The narrative surrounding Ethereum and ETH as an asset has undergone a significant shift in the last 6 months. This shift can be seen in the increasing recognition of ETH as a non-sovereign store of value, with institutions and notable figures like Mark Cuban expressing bullishness towards Ethereum and ETH. The ultrasound money meme, which posits that ETH will become increasingly scarce and valuable as it is used more within the Ethereum network, has added to this narrative. Additionally, the growing importance of DeFi and the significant amount of ETH being locked into DeFi protocols has further highlighted the value of ETH as a collateral asset. The increasing liquidity of ETH, as a result of its use in various applications and markets, has also bolstered its position as a valuable asset. Cyrus, with his background at MakerDAO, has observed these changes firsthand and noted the impact they have had on borrowing and lending, as well as decentralized exchanges. Overall, the changing market structure and use cases of ETH have contributed to a new narrative that views ETH as a valuable, natively programmable asset, rather than just gas for the Ethereum network.
Ethereum's Role as a Reserve Asset in DeFi: Ethereum's liquidity demand in DeFi surpassed stablecoins, solidifying its position as a reserve asset. DEXs enable users to buy/sell large ETH sizes with minimal slippage. Ethereum's price rise fueled by endorsements, staking, and EIP-1559.
Ethereum (ETH) has emerged as the liquidity anchor and base asset in the decentralized finance (DeFi) ecosystem, surpassing stablecoins and solidifying its position as a reserve asset. The market for Ethereum's liquidity is exploding in decentralized exchanges (DEXs), enabling users to buy and sell huge sizes of ETH with minimal slippage. This shift is palpable in the narrative around Ethereum, which has dramatically changed over the last 6 months as more people outside the crypto community recognize its value. The reflexive relationship between price and attention has driven this narrative shift, with notable figures like Mark Cuban publicly endorsing Ethereum and driving up its value. Ethereum's mechanisms, such as staking and Ethereum Improvement Proposal 1559, have also contributed to this shift by making ETH a necessity for paying fees on the network and increasing its monetary properties. This change may seem drastic compared to the bear market, but the Ethereum community has flipped the script on ETH's role in the ecosystem, transforming it from a gas token to a valuable asset.
Ethereum's Shift from Story to Digital Money: Ethereum's focus on network utility and deflationary economics has led to its recognition as a form of digital money, with EIP 1559 and PoS adoption driving this shift.
The Ethereum community's focus on network utility and deflationary economics through initiatives like Ethereum Improvement Proposals (EIPs) 1559 and the upcoming merge with Proof of Stake (PoS) has significantly shifted the narrative around the value of Ethereum. The utility of Ethereum as a network is now the primary driver of its value, as seen in the popularity of EIP 1559 and the increasing adoption of ETH as a unit of account for transactions. This shift has led to a growing consensus among Ethereum bulls, including institutions and funds, that Ethereum is not just a story or an inflation hedge, but a form of digital money. This belief was further solidified when even detractors began using ETH for transactions, such as when Vlad Zamfia, a former Ethereum Foundation employee, sold an NFT and accepted ETH as payment. The meme of Ethereum as money has become a reality, and its utility as a monetary system is increasingly recognized within and beyond the crypto community.
ETH as the native digital currency of Ethereum economy: ETH's role as a digital currency in the Ethereum ecosystem is growing due to the dominance of the NFT market, reflecting community backing and a psychological shift towards valuing ETH as a valuable asset, despite ongoing debates about its energy consumption and transition to proof of stake.
Ethereum (ETH) is increasingly being seen as a form of digital currency or "money" within the Ethereum ecosystem due to the dominance of the NFT economy being priced in ETH. This comparison can be drawn to how people accept the native currency of a country when traveling, and the same logic applies to the Ethereum network. The acceptance of ETH as the native currency in the Ethereum economy is not new or controversial, and the success of memes like "ultrasound money" reflects the growing community backing and psychological shift towards ETH as a valuable asset. However, the ongoing debate around Ethereum's energy consumption and transition to proof of stake adds complexity to this narrative and underscores the need for continued progress towards more sustainable solutions.
Ethereum's Transition to Proof of Stake Shifts Narrative in Crypto Industry: Ethereum's shift to proof of stake, expected within a year, could reduce industry focus on energy consumption and fuel a bull run narrative
The transition of Ethereum to proof of stake and the reduction in energy consumption is expected to significantly shift the narrative within the crypto industry. Currently, the industry, including Ethereum, faces headwinds due to concerns over energy consumption and its impact on the environment. However, once Ethereum moves to proof of stake, which is estimated to happen within the next year, the energy debate is expected to take a backseat. Proof of stake is believed to be more secure than proof of work, and the economic value and security provided by the energy spent on securing public blockchains will continue to be recognized. The shift to proof of stake could potentially fuel a bull run narrative for Ethereum, making it a tailwind rather than a headwind for the crypto industry. While Bitcoin continues to face complex arguments regarding its energy consumption, the simpler narrative around Ethereum's transition to proof of stake makes it easier for newcomers to understand.
Ethereum's PoS transition simplifies its narrative and differentiates it from Bitcoin: Ethereum's shift to PoS will make its narrative clearer, attract energy-conscious users, and potentially institutional investors, while Bitcoin's continued use of PoW may lead to negative narratives and challenges in gaining public support
Ethereum's transition to proof of stake (PoS) from proof of work (PoW) will simplify its narrative and differentiate it significantly from Bitcoin. This shift will enable Ethereum to address the energy consumption concerns more effectively, making it easier for the general public to understand and support. The Bitcoin community, on the other hand, will continue to face the challenge of dealing with the negative narratives around its energy consumption, as it has no plans to move away from PoW. The simplicity of Ethereum's narrative post-merge is expected to attract more users, including those who are energy-conscious, and potentially even institutional investors. The excitement and buzz around the merge are anticipated to significantly impact the market, much like what was observed with the beacon chain launch and EIP 1559.
EIP 1559 and Low Gas Fees: A Schizophrenic Response: The Ethereum community is experiencing a split opinion over the current low gas fees. Some appreciate the improved user experience, while others argue for higher fees for security. The long-term impact of these low fees remains uncertain, and the demand for Ethereum is hard to predict.
The discussion around Ethereum's EIP 1559 and the current low gas fees has brought up questions about how much Ether will be burned as initially anticipated. With gas prices consistently below 20 dollars in the last few weeks, the community is experiencing a schizophrenic response, as some want low fees for better user experience while others believe high fees are necessary for security. However, the demand pouring into Ethereum is hard to predict, and it's uncertain whether these low gas fees are a temporary trend or a long-term shift. Another significant topic touched upon was the rise of Decentralized Autonomous Organizations (DAOs) and the need for labor in the growing DeFi ecosystem. Sponsors Aave and Uniswap were highlighted for their contributions to the Ethereum community, with Aave offering seamless collateral swaps and Uniswap accepting grant applications for those looking to contribute to the DAO.
EIP 1559: Balancing Ethereum's Network with Burn and User Experience: EIP 1559 introduces a mechanism to burn ether as usage increases, reducing inflation, and improving user experience, despite high gas fees. With layer 2 solutions and roll-ups, Ethereum can achieve a balance between high fees for maximum burn and low fees for mass adoption.
Ethereum's EIP 1559 is an important mechanism that brings balance to the network by burning ether as usage increases, reducing inflation, and improving user experience. While high gas fees may seem undesirable, they are necessary for network usage and EIP 1559's implementation. With the addition of layer 2 solutions and roll-ups, Ethereum can strike a harmony between high fees for maximum burn and low fees for mass adoption. In time, a layer 2-centric world may allow for higher gas fees on layer 1, enabling more transactions and increased network efficiency. Ultimately, EIP 1559 is an elegant solution that keeps the Ethereum supply in check and enhances the user experience, creating a consistent and egalitarian system.
Ethereum's transition to a trust layer through EIP 1559 is a long-term play: Ethereum's transition to a trust layer through EIP 1559 will increase the value of layer 1 over time, with temporary high fees for high-value transactions and eventual dominance of layer 2 solutions.
Ethereum's transition to a trust layer through EIP 1559 is a long-term play that will increase the value of layer 1 over time. High individual fees are temporary and necessary for high-value transactions, such as those from roll-up providers. Most users will eventually operate at layer 2, paying much lower fees while still contributing to layer 1's revenue. Although fees may not be high initially after EIP 1559, they will continue to be significant and contribute to Ethereum's ongoing fee burn. The eventual dominance of layer 2 solutions and the Ethereum ecosystem's continued growth will eventually make high layer 1 fees a non-issue for most users.
Ethereum's transition to deflation and the impact on price: Ethereum's shift to a deflationary model, driven by EIP-1559 and the merge, will increase scarcity and drive up demand, potentially leading to significant price appreciation.
Ethereum's transition to a deflationary state through EIP-1559 and the merge is a significant scarcity catalyst that will increase demand and drive up the price of Ethereum as more people become aware of its unique value proposition. While scarcity is an important factor, it's not the only one. Demand plays a crucial role in determining the value of an asset. Ethereum's shift to a deflationary model, which is similar to Bitcoin's scarcity narrative, will make Ethereum an even more attractive investment opportunity. The scarcity maximalist perspective, which emphasizes the importance of scarcity, is valid but incomplete. It's essential to consider the demand side of the equation as well. The number of people who understand the implications of Ethereum's transition to a deflationary state is still relatively small. As more people become aware of this narrative, Ethereum's price is likely to increase significantly. Investors who buy Ethereum before these developments are fully realized will be in a strong position to benefit from the price appreciation. The transition to a deflationary Ethereum began with the proposal of EIP-1559 in April 2019, and those who invested early have seen substantial returns. The demand side, which is driven by awareness and understanding of Ethereum's unique value proposition, is crucial in determining the price of Ethereum.
Ethereum's Versatility and Future Upgrades: Ethereum's versatility and upcoming upgrades, including EIP 1559 and the merge, position it for significant growth.
Ethereum presents significant potential for growth due to its versatility and the various applications it supports, such as DeFi, NFTs, and dApps. Scarcity maximalists should consider Ethereum's ultrasound money properties, which accurately describe its goals. The Ethereum community is confident in the upcoming EIP 1559 and the merge within the next 9 to 18 months. Despite potential risks, the community trusts Ethereum developers to address any issues that may arise. The history of technology development shows that setbacks are a normal part of the process, and Ethereum will continue to evolve and improve.
Ethereum Community Approaching Merge with Caution and Thoroughness: Ethereum community is meticulously preparing for the merge event, involving extensive testing, audits, and a focus on layer 2 solutions to minimize risks and ensure a successful transition to proof-of-stake consensus mechanism.
The Ethereum community is taking a cautious and thorough approach to the upcoming "merge" event, which involves merging the existing Ethereum blockchain with the Beacon Chain and transitioning to a proof-of-stake consensus mechanism. This merge is seen as a critical step for Ethereum's future, but it's not being rushed. Before the main net merge, there will be extensive testing, audits, and rigorous examination of the code to minimize the risk of failure. The Ethereum community learned from the successful launch of the Beacon Chain, which underwent extensive testing before its main net launch. Despite the potential risks, the participants in the discussion are optimistic about the merge's success and believe that the development teams are focused solely on this task, with a tremendous amount of energy and enthusiasm. Additionally, there's a growing focus on layer 2 solutions, which could lead to a "layer 2 summer" in the near future. Overall, the Ethereum community is approaching this transition with a sense of urgency, but also with a commitment to thorough testing and a willingness to adapt if necessary.
Layer 2 Summer: A New Phase in Ethereum's Development: Ethereum's Layer 2 solutions like Arbitrum and Optimism offer cheaper transactions, maintain same security guarantees, leading to increased development focus, accessibility for mainstream users, and potential growth in DeFi ecosystem.
We're entering a new phase in Ethereum's development, often referred to as "Layer 2 summer," where scalability solutions like Arbitrum and Optimism are starting to roll out. These Layer 2 solutions offer cheaper transactions, potentially costing between 1/10th to 1/20th of on-chain gas fees, and maintain the same security guarantees as Ethereum's Layer 1. The arrival of Layer 2 platforms is expected to lead to a new wave of development on Ethereum, with an increased focus on applications that may not have been cost-effective before. This could include smart contract wallets, higher throughput apps, and even side chains like Polygon. Additionally, the DeFi ecosystem may see another wave of growth as Layer 2 platforms enable yield farming and other DeFi activities that were previously cost-prohibitive. Overall, the Layer 2 summer represents an exciting time for Ethereum's ecosystem, with the potential for new innovations and increased accessibility for mainstream users.
Ethereum's Layer 2 solutions not a silver bullet for scalability: Ethereum's Layer 2 solutions like Optimism and Arbitrum will help scale Ethereum, but they are not a silver bullet. Rollups are the current go-to solution, but they are limited by Layer 1 scalability. Sharding and statelessness are crucial, but no silver bullet exists. Do as much scaling as possible on Layer 1, leverage Layer 2s for increased throughput.
Ethereum's Layer 2 solutions, such as Optimism and Arbitrum, are expected to significantly help Ethereum scale, but they are not a silver bullet. Rollups are the current go-to solution for scalability, but they are still limited by the scalability of Layer 1. Sharding and statelessness are also crucial for enhancing Ethereum's scalability. However, there is no silver bullet in technology, and the way forward is to do as much scaling as possible on Layer 1 while preserving decentralization and security, and leverage Layer 2 solutions for increased throughput. Layer 2s are expected to shine once sharding comes in, but there might not be enough demand to fill them to their limits in the short to medium term. Additionally, there are concerns about economic transaction activity moving to Layer 2s, which could decrease block space value on Ethereum's mainnet and erode the value proposition of EIP 1559. However, this issue can be addressed by ensuring that Layer 1 and Layer 2s work in tandem to provide the necessary scalability for Ethereum.
Ethereum's Roll-up Centric Roadmap and DAOs: Ethereum's future involves roll-up transactions securing the network, lower fees for users, clear goals for DAOs, and decentralized cooperation beyond finance and NFTs.
The shift to layer 2 roll-up transactions on Ethereum is not only inevitable but also essential for the long-term success of the network. While it may lead to lower fees for users in the short term, the high fees paid by roll-up transactions in aggregate will secure the network and push out other transactions. The rise of decentralized autonomous organizations (DAOs) is another exciting development for Ethereum, representing a new form of global cooperation that goes beyond traditional finance and NFTs. However, for DAOs to be successful, they must have clear purposes and goals. Overall, the long-term vision for Ethereum involves a roll-up centric roadmap, where layer 1 will primarily secure roll-up transactions, and users will pay smaller fees on layer 2. It's important for the community to take a long-term view and ignore short-term market noise. The emergence of off-chain DAOs, which operate more in the social and meatspace layers, adds another dimension to the Ethereum ecosystem, creating new opportunities for decentralized cooperation and organization.
Exploring the challenges and potential of DAOs: DAOs represent a new way of organizing capital in the digital era, with the potential to transform resource allocation on a global scale, but face challenges such as setting clear purposes and addressing coordination issues.
DAOs (Decentralized Autonomous Organizations) are still in their infancy and face challenges such as setting clear purposes, establishing entry and exit processes, and addressing ongoing coordination challenges. However, their potential for capital coordination is immense, and successful DAOs have the potential to transform the way we organize and allocate resources on a global scale. The current form of DAOs is still undergoing experimentation, and it's unclear what the final form will look like. Despite the challenges and failures, the determination of the community to make DAOs work is driving their growth and innovation. From a historical perspective, DAOs represent a new way of organizing capital in the digital era and have the potential to create organizations that are not bound by nationality or physical location. The future of DAOs is uncertain, but their potential impact is significant.
The Future of Business with DAOs on Ethereum: DAOs on Ethereum are self-governing entities promoting innovation, but lack of regulation poses a risk. Ethereum's decentralized nature makes it ideal for DAOs, set to disrupt traditional businesses.
DAOs (Decentralized Autonomous Organizations) represent the future of business and finance, with Ethereum serving as a key infrastructure for their growth. DAOs are self-governing entities that allocate capital to builders within the ecosystem, promoting innovation and decentralization. However, the lack of regulation poses a risk, as it can incentivize malicious activities such as ransomware attacks. Despite this, the potential benefits of DAOs, including their use of ETH as a treasury asset, outweigh the risks. Ethereum's decentralized nature makes it an ideal platform for DAOs, which are set to disrupt traditional corporate structures and bring about a new era of internet-native businesses. While there are concerns regarding potential misuse, the community's focus on building a fair and transparent ecosystem is a promising sign for the future of DAOs.
Decentralized Currencies and Stablecoins: Beyond Traditional Currencies and Nation States: The speaker advocates for the potential of decentralized currencies like Ethereum and stablecoins pegged to it, but emphasizes the need for a truly stable and battle-tested ETH-backed stablecoin, while criticizing USD-pegged stablecoins for inheriting the US dollar's problems and being tied to it.
The speaker believes in the potential of decentralized currencies like Ethereum (ETH) and stablecoins pegged to it, rather than relying on traditional currencies or nation states for stability. He envisions a future where DAOs and foundations can denominate in stable ETH without taking on volatility risk. However, he also acknowledges the need for a truly stable and battle-tested ETH-backed stablecoin. The speaker criticizes USD-pegged stablecoins like Dai for inheriting the US dollar's problems and being tied to it. He also shares his thoughts on market cycles and the recent market downturn, attributing it to retail-driven mania and scams in the DeFi space. He also shares his skepticism towards market predictions and calls out Eric Conner for incorrectly predicting the top of ETH's price.
Scams as Market Indicators: Scam activity can indicate market cycles and lead to large amounts of money flowing out of the crypto ecosystem, potentially contributing to market corrections.
The presence and impact of scams in the crypto market can serve as a significant indicator for market cycles, including local tops. During times of heightened scam activity, large amounts of money can flow out of the ecosystem, leading to a decrease in new money coming in and eventual market corrections. The money being taken out of the ecosystem is often denominated in fiat currency rather than cryptocurrencies like Ethereum or Bitcoin. The recent market downturn saw large drops in the prices of Ethereum and Bitcoin, which some believe may be the result of a combination of factors including profit-taking, regulatory concerns, and a cooling off period after a prolonged bull market. Despite the current market conditions, many believe that the crypto market will continue to experience shorter bull and bear cycles for the foreseeable future. It's important to remember that major drawdowns are a normal part of the market and trying to attribute every one to specific events may not be productive. Instead, it's important to maintain a long-term perspective and stay focused on the underlying fundamentals of the crypto market.
Long-term growth and development of Ethereum: Despite market volatility, Ethereum's long-term fundamentals remain strong, with continued growth and development in institutional adoption, DeFi, NFTs, and DAOs.
The long-term vision for Ethereum involves significant growth and development across various use cases, including institutional adoption, DeFi, NFTs, and capital allocation through DAOs. These developments don't happen overnight and require time, effort, and resources. The market's short-term volatility, such as price fluctuations, should not overshadow the long-term fundamentals of Ethereum. Historically, Ethereum tends to underperform during bearish markets but outperform during bullish ones compared to Bitcoin. The recent market rally saw fewer pullbacks, which is unusual and may indicate excessive speculation. The market may be experiencing a cooling-off period that could last for 6 to 12 months due to various factors, including the market getting ahead of itself and the world returning to normal life post-COVID. Despite the current market conditions, the long-term fundamentals of Ethereum remain strong, and the price is expected to eventually reflect these developments.
Long-term bullish on Ethereum despite market volatility: The panelists remain optimistic about Ethereum's future, emphasizing the importance of focusing on long-term potential rather than short-term price fluctuations, while advising caution for new capital deployment due to market volatility. Price predictions ranged from $10,000 to $100,000.
The panelists remain long-term bullish on Ethereum (ETH), despite the current market volatility and uncertainty. They believe that the adoption and development of Ethereum will continue, and the fundamentals will keep strengthening. However, they advise caution for those deploying new capital due to the market's extreme volatility. Price predictions ranged from $10,000 to $100,000 over the long term, but the panelists emphasized the importance of focusing on the long-term potential of Ethereum rather than short-term price fluctuations. The panelists also discussed the possibility of extended market cycles or "super cycles," but for consistency, they continued to use the term "cycles." Overall, the panelists expressed optimism about Ethereum's future and encouraged listeners to pay attention to the project.
Long-term bullish outlook for Ethereum: Ethereum's fundamentals remain strong despite market downturn. Price could range from $10,000 to $30,000 in this cycle, surpass $100,000 within 5 years due to improvements like EIP-1559 and The Merge. Yields will decrease but long-term fundamentals will stay strong.
Despite the current market downturn and price fluctuations, the long-term outlook for Ethereum remains bullish due to its strong fundamentals and continuous development. The speaker believes that the price could range from $10,000 to $30,000 in this cycle and surpass $100,000 within 5 years. The speaker's long-term commitment to Ethereum, despite the short-term volatility, is based on the ongoing improvements, such as the Ethereum Improvement Proposal 1559 and the transition to proof-of-stake (The Merge), which are expected to enhance the network's capabilities and efficiency. The speaker also emphasizes that the yields, which are currently high due to the relatively small amount of capital in the system, will decrease as more capital flows in, but the long-term fundamentals will remain strong.
Focus on long-term vision and fundamentals, not price milestones: Investors should ignore price milestones and focus on the long-term vision and fundamentals of a project when deciding to buy or sell crypto assets.
Price predictions in crypto, such as the anticipated price of Ethereum (ETH), should not be the sole reason for buying or selling. The journey of investing in crypto is not complete once a certain price is reached, as there are always more developments and advancements on the horizon. If an investor has their living expenses covered, they might not have a reason to sell even if the price reaches a desired level. Arbitrary price milestones, like round numbers, are just noise and not significant reasons to buy or sell. Instead, investors should focus on the long-term vision and fundamentals of the project. Additionally, the panelists expressed their long-term bullishness on Ethereum, emphasizing the importance of holding onto the asset for the future.
Expected changes to Ethereum's supply post EIP 1559 and the merge: Ethereum's future is promising with decreasing inflation and potential deflation, but investing carries risk and potential loss of investment.
Ethereum (ETH) is a risky crypto asset, but its future is promising. Justin Drake's ultrasound money trilogy outlines the expected changes to ETH's supply post Ethereum Improvement Proposals (EIP) 1559 and the merge. These changes include decreasing inflation and eventual deflation. However, it's important to remember that investing in ETH carries risk, and you could potentially lose your investment. Despite the uncertainty, the Ethereum community remains optimistic about the future of the platform. If you're interested in learning more, consider revisiting Drake's trilogy. As always, proceed with caution and do your own research. Ethereum is part of the crypto frontier, and it's not for everyone. But for those who are willing to take the risk, the potential rewards could be significant.
