Summary
The article discusses the current state and future prospects of Ethereum, as well as the importance of fees, scarcity, and the deflationary aspect of the network. The interview with Justin Drake, a researcher at the Ethereum Foundation, highlights the profitability of the fee market and the potential for Ethereum to become the scarcest money on Earth. The article also covers the role of Ethereum as a public good, its value as collateral within DeFi, and the efficiency of processing deposits. Additionally, it addresses concerns about staking yields and compares Ethereum’s price performance to that of Bitcoin. Drake suggests that a “flippening” may occur in the next bull run.
Key Points
1. Ethereum’s price did not meet expectations after the transition to proof-of-stake, and NFTs and DeFi engagement experienced lows.
2. The deflationary aspect of Ethereum, with decreasing supply and scarcity, is seen as important for its success as “money for the internet.”
3. The queue for Ethereum validators has decreased, but the metric of deposits shows a significant amount of ETH being staked daily. The lower staking yields are not a concern as Ethereum is already considered extremely secure.