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Jimychanga's avatar

LETS LOOK A CHARTS. Occasionally a chart can say something interesting about where things are going. Below is the chart of ETH priced in BTC.

The price is about to hit a 2-year low. Last time it was there, it rallied sharply. After the Merge (which transitioned ETH to proof-of-stake) near the end of 2022, ETH has been down about 30% in BTC terms.

There’re a few ways we can look at this. The first thing is that the market is pricing in the tradeoffs of proof-of-stake and has punished ETH ever since the Merge. The second is that all the talk about a Bitcoin Spot ETF and institutional adoption has been very unilaterally favorable for BTC throughout 2023. There is a strong case to be made that some kind of mean reversion is possible, which means that ETH would outperform BTC.

Amongst all non-BTC crypto, I like the fundamentals of ETH the best. It has the biggest developer network and the most infrastructure to build on top of. Also, there isn’t a great need for alternative L1s when Ethereum’s ecosystem of L2s is already offering very high throughput.

For example, Solana is said to be one of the fastest blockchains. However, Arbitrum, Optimism, and Polygon – all Ethereum L2s – have a similar level of speed. Plus, a lot of the oft-repeated throughput metrics are also misleading.

Moreover, the Ethereum L2s actually have users on them. Look at these metrics from Token Terminal. Arbitrum generates about as much revenue and fees as Solana and Avalanche combined. That should tell you a lot – the fact that one second-layer of Ethereum is generating more value than these other two “ETH Killers” combined. https://seekingalpha.com/article/4657397-ethereum-has-upside

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Jimychanga's avatar

History Quiz:

HOW were they able to make CHROMIUM SULFIDE SWORDS 2400 years ago (requires 3500 Fahrenheit and special knowledge) that are still shiny and sharp when found?

https://youtube.com/shorts/incd058Lwkw?si=i73bme8lQ1XDPoBY

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