Summary
The article discusses the current standing and future prospects of Ethereum, particularly in relation to its issuance, burn, and fees. The researcher from the Ethereum Foundation emphasizes the importance of the deflationary aspect of Ethereum and its ability to generate fees, highlighting the scarcity of ether as a meme that could spread and benefit the network. The researcher also discusses the significance of ether as a basis for economic security and economic bandwidth in programmable blockchains. Regarding the validator queue for staking ether, the researcher explains that it is not a relevant metric and focuses on the daily deposits of ETH instead. They also address concerns about staking yields being down and argue that lower yields are better for the security of Ethereum. Finally, the researcher comments on the performance of ether compared to bitcoin, stating that expectations for ether to outperform bitcoin during a bear market were unreasonable, but there may be a flippening in the next bull run.
Key Points
1. Ethereum’s “Merge” to proof-of-stake did not result in the expected breakout for ether’s price and institutional inflows have yet to materialize.
2. The fee market for Ethereum is volatile, but over a longer period of time, it has been extremely profitable with a profit margin of 50%.
3. The deflationary aspect of Ethereum, with its decreasing supply, is seen as important for its memetic potential and its role in providing economic security and economic bandwidth for the blockchain.