Metta

Very interesting view point on the valuation of ETH. His view point is simple: "Ethereum’s value lies not in fees or scarcity, but in its role as the backbone of a new global power struggle." "Ether is the geopolitical soft-power of the future. He who controls the ETH, controls the world." https://www.the-edge.xyz/p/the-nation-state-thesis-of-ethereum

In this particular case, you hold stablecoin(USDC/USDT) so you don't take principle risk like in your case(staking Curve, AAVE token). Also no locking period, can withdraw principle anytime. The reward(yield) is liquid, can claim and sell every second if you want to.

Need to study the protocols(team, smart contract...) and manage risks here.

It offers 50% yield in limited time(2 weeks) and has hard cap(about $1M). Think of it as a promotion period to bootstrap the biz. So not really shady.

On the contrary, Blockchain can be a very transparent tech for finance if users know how to use it. Otherwise they fall to scams.

Yes. All valid reasons to hold stablecoin. But people can earn yield from stablecoin onchain as well without Stablecoin Issuers paying the yield. For example the current yield when depositing USDC/USDT on lending platform AAVE is 3.36%. This is low in bear market but in bull market, this yield can be well over 20%. Even today, you can still earn 50% yield on stablecoin if you know where to look and willing to take some risk:

This image compares the US Treasury hold by China and Stablecoin Issuers. If this trend continues, Stablecoin Issuers will soon hold more US Treasury than China. This is why Scott Bessent badly want to grow the Stablecoin.

https://coinshares.com/corp/resources/knowledge/ethereum-staking-yields-explained/ https://ethresear.ch/t/is-it-worth-using-mev-boost/19753

"We are going to keep the US the dominant reserve currency in the world and we will use stablecoin to do that." Stablecoin is going to be really important so I just want to create a separate thread to focus on stablecoin.

An interesting point is that the best biz model with highest revenue/profit in Blockchain currently is from Stablecoin developers. Tether/Circle currently have highest profit. alxcii Do you think that Tether/Circle profit is sustainable or other competitors will show up(like USDG from Robinhood?)

A Blockchain always has 3 problems: 1. Scalability. 2. Security. 3. Decentralization. Ethereum L1 is designed to solve 2 and 3. So the main fee/revenue of L1 come from this service. Ethereum L2 is designed to solve 1. L2s provide speed and cheap txs. The main fee/revenue of L2 comes from this service. Batching, sequencing, compressing txs. There are MEV fee as well but this should be passed to app layer.

More Rollups directly lead to more DA revenue/fee for ETH holders. More L2/Rollup also directly leading to more demand for ETH asset. The negative side of Rollups is that they take some sequencing/execution fee away from Ethereum. The good new is that Ethereum L1 is stepping up to provide Executing service as well.

Aave Proposes turn on fee switch and buyback program. Aave DAO has announced significant updates to its tokenomics, including the initiation of a buyback program and the activation of a fee switch. This proposal, considered the most pivotal in Aave's history, aims to redistribute excess protocol revenue and enhance token value for holders.

One advantage of modular tech stack like Ethereum is that it attracts Layer 2 developers. Layer 2 developers can make a lot of money. See Base from Coinbase. Therefore, many exchanges like Coinbase(L2 Base), Kraken(L2 Ink), Bybit(L2 Mantle)... are building Layer 2 on Ethereum. They will attract more users, coders, and liquidity to Ethereum. Layers 2s are builders/distributor for Ethereum Network. Who win the distribution problem will probably win the blockchain war. Maybe one day Robinhood, Stripe, Blackrock, Charles Schwab, Nasdaq... will build a Layer 2 on Ethereum. Sony already launched an Ethereum L2 called Soneium: https://www.sony.com/en/SonyInfo/News/Press/202501/25-002E/ World(co-founded by Sam Altman ) is also an Ethereum Layer 2. Deutsche Bank is reportedly creating a layer-2 (L2) blockchain solution on Ethereum using ZKsync technology: https://www.binance.com/en/square/post/12-18-2024-deutsche-bank-develops-layer-2-network-on-ethereum-using-zksync-17746441239850

To get out of the hole, stop digging. To get a cold thread, stop posting. God bless you.

Nowadays, you can sent money from Coinbase straight to Layer 2 like Optimism/Base... and the txs fee on Base in around $0.001. Many Layer 2s even have zero fee. The tech improvement is enormous.

1a. Yes. The security property of current Ethereum Layer 2s/Rollups is not equal to Solana. Specifically, Base is at stage 0 rollup(validation is fully trusted/centralized) and Arbitrum is a stage 1 Rollup( there is a trustless proof system but a security council that can override the proof system). But Layer 2 tech can improve to reach stage 2 to fully inherit Ethereum's core properties (trustless, open, censorship resistant). The zk proof tech is already there, just need more time for maturing and cost reduction. In short for the current situation: Solana is less secure/decentralize than Ethereum Layer 1 but more secure/decentralize than Ethereum Layer 2s. Solana is more performance than Ethereum Layer 1 but less performance than Ethereum Layer 2s. But as the modular tech improves, the tech selling point of Solana is going to dimmish overtime. This is why Solana Founder start talking about Network Extension - a kind of Layer 2 on Solana. 1b. You can still have synchronous composability on Ethereum Layer 1 or on each Ethereum Layer 2. Both Layers keep improving as well. Ethereum L1 keeps improve on scaling while Ethereum L2s keeps improve on security. 2. Other metric to evaluate market share is Value Secure. Around $600M asset is currently secured by Celestia while $36B is currently secured by Ethereum DA. This is what I mean by low quality data posted on Celestia. Source here: https://l2beat.com/data-availability/summary. 3. Ok. 4. Those exchanges(NYSE, Tokyo, Shanghai, LSE etc.) co-exist because there is a high barrier between them. It also causes liquidity fragmentation/market inefficient. Blockchain is different. Blockchain allows for better liquidity efficient and composability. So the outcome here might also different from old exchange world.

1. Ethereum Layer 2s will have higher throughout than Solana. For example, current block time of Ethereum Layer 2 Arbitrum is 250ms while Solana is 400ms. The fee on Ethereum Layer 2 Base is similar to Solana currently(around $0.001). And fee on Layer 2 will get even cheaper when Ethereum increase Blob per block 16x( from 3 to 48 at the end of this year). Base also just introduces Flashblock to reduce block time to 200ms, coming to live in Q2. Modular architecture is always more better for scaling than Monolithic architecture. Internet shows that. This post clearly explain why: https://polynya.mirror.xyz/3-omFNK3uU0iAaYSpFz0f9rCvrDBjx0H3XOSDGXU8hY 2. "Celestia's market share > Eth by data posted."? What do you mean by market share here? Volume or Revenue? Volume posted on Celestia is very low quality compared to Ethereum. 3. Ethereum Layer 1 is the most secure/decentralize execution layer. I think high value txs will continue to happen Ethereum Layer 1 while low value txs will happen on Layer 2. 4. Blockchain is very much like a nation with its culture. Will Crypto end up with many different Layer 1s similar to current world order(over 100 countries) or will crypto end up with only 1 Layer 1 with thousands of Layer 2(like US with over 50 states). I'm still thinking about how market structure will play out here.

Please read the first post in this thread, it basically talks about where revenue of a Blockchain like Ethereum coming from? (congestion fee, contention fee...)

Profitable after fee... Many people develop the bot to do Arbitrage in Crypto. But sometime I can still arbitrage manually. Just click the right buttons, fast. There are people making millions from a single arbitrage transaction on Ethereum. It's not coincident that Citadel is coming back to Crypto. This post is good start if you want to go into this rabbit bole: https://www.paradigm.xyz/2020/08/ethereum-is-a-dark-forest

Hi man. Don't be angry. Science proved that when you are angry, your body is poisoning itself. It's not worth it for some random comments on Internet. God bless you.

Hi. Isn't that exactly the reason for creating a separate room/thread for? So people know which room is for them?

I still don't understand your point. Are you saying that stablecoin on Bitcoin(Lighting Network) is good but stablecoin on ETH/SOL.. is not good?

Look, I can buy ETH on 1 exchange at 2000 and then sell it on another exchange for 2010 few seconds later. Not many youtube videos will tell you about that. You have to look for yourself. But you get the point. It's an inefficient market. Do you know there many small/micro cap in Crypto?

We are talking about fundamental and don't you think this forum has a lot of people focusing on fundamental? If there are not many people interested in it, that doesn't mean we should not talk/discuss about it? It's the opposite. We should talk/research about it more. Because that might be where opportunities are lying. Isn't value investor very much uncommon/against the crowd many time?