Tuesday, August 31, 2021

24 reasons eth is undervalued

I saw this thread on Twitter/ethtrader and cryptocurrency, and thought it was worth sharing

I'll copy-paste the text here, but it's better to read it with all the images and quote, either directly on Twitter (https://twitter.com/CroissantEth/status/1412574228973563909), on the unrolled version (https://threadreaderapp.com/thread/1412574228973563909.html).

But here you go, enjoy:

24 reasons $ETH is extremely undervalued...

1. Smart Contracts

A smart contract automatically executes code once specific terms are met

It is the first form of programmable money to exist, & users can rely on it to create decentralized money legos free of censorship

Lend, borrow, swap, & do much more with them!

https://preview.redd.it/k16lym746s971.png?width=1076&format=png&auto=webp&s=c639f0febf2c8d7ef1cfcd94efb3ed89ab9957e4

2. Stablecoins

$ETH is home to many stablecoins which have grown tremendous use cases:

$USDT: $62B
$USDC: $25B
$DAI: $5B
$TUSD: $1.5B

They are very popular for use in DeFi, & VISA will soon accept tx settlement in $USDC

$USDC has grown from a $4B mcap, to $25B this year

https://preview.redd.it/gb5pkd066s971.png?width=1108&format=png&auto=webp&s=b5ee9eb01f57dc23fbffdb879c519e8fd1e33a88

3. DeFi

DeFi has exploded because of its attractive yield, flexibility, & its non-custodial nature

With DeFi, we can become our own banks by cutting out the middleman involved

It is restructuring the industry of finance as we know it today, and it’s not stopping

https://preview.redd.it/ighqlox66s971.png?width=1199&format=png&auto=webp&s=c17bbdf7ff9d50b4ded2109ec81a73945c7b2128

4. dApps

A total of 94 out of the top 100 crypto projects are built on $ETH, with more than:

-3,000 dApps-200K ERC20s

These protocols often have many further use cases involving $ETH, creating the fundamentals for the Web 3.0 economy & they are decentralized & open to anyone

https://preview.redd.it/fjzgw3h86s971.png?width=1199&format=png&auto=webp&s=200917cdb083d87f0c730d8447fc01d28df86910

5. Developers

One thing that has shocked many is the attention $ETH has gotten from devs

It is sucking in the worlds talent at a pace we can’t begin to comprehend

Since Q3 2019, $ETH has gained more than 300 developers every month, growing at a pace faster than even $BTC

https://preview.redd.it/6qg2ebga6s971.png?width=1200&format=png&auto=webp&s=ac4ef6e9ad543390eb78eeb8042ca0d93d7e92b5

6. Insurance

Off-chain oracles & ETH offer an elegant solution to the trillion dollar insurance industry

Smart contracts can automate claims, offering farmers coverage across the world

This process is fair & efficient, as many don’t even have the option to get insurance today

https://preview.redd.it/cmv3srgb6s971.png?width=1200&format=png&auto=webp&s=1e5b51a96e33ab05e90344c282df9c9cf2638acd

7. Interoperability

This is one of the subjects I feel many people underestimate the implications of

$ETH will unlock potentially hundreds of billions in liquidity from POS blockchains through interchain accounts & interoperable liquid staking derivatives

8. NFTs

NFTs on $ETH have picked up a lot of steam, attracting attention from both GameStop & Twitter

They are unique tokens which can be used by creators to tokenize a wide range of content (not just art)

If one thing is for sure, it’s the fact that NFTs are here to stay

https://preview.redd.it/rif6u91e6s971.png?width=481&format=png&auto=webp&s=d181807e194b8e2bde94caef7f4f934fd70aff3d

9. Metaverse

NFTs on $ETH will power a universe beyond our own

This will be propelled by virtual reality technology pioneered by the largest companies in the world

We’re talking about matters of augmented reality, virtual ad space, tokenized in-app purchases, & much more...

10. Digital Land

Digital land, unlimited by physical space like land today, can be tokenized and used to build entire economies that are owned by the players

If virtual reality becomes more commonplace, virtual land could eventually evolve to a trillion dollar marketplace

11. DAOs

DAOs are entities made up of any number of individuals who maintain the group’s decisions in a distributed manner

Individuals can use tokens to vote and propose ideas they want for the protocol

These have come to be some of the largest bootstrapped communities we know

https://preview.redd.it/9mxu76rf6s971.png?width=1023&format=png&auto=webp&s=9cbec6bdf016cd134cd1801fe2ef988bb28dfb0e

12. Synthetics

Synthetic tokens offer a wide range of pretty much any stream of value you can think of. Blockchain oracles relay price feeds to synthetic token protocols.

This allows for people to trade stocks on the stock market, data feeds, precious metals, and much more!

https://preview.redd.it/edrv9lng6s971.png?width=971&format=png&auto=webp&s=50ee55418bd0346ada8cf64461770458f7c815ea

13. Lending & Borrowing

On $ETH, lending protocols are quite literally already putting up some significant numbers against banks

There are hundreds of thousands of borrowers who have utilized these systems to get a loan without any need for a bank, often even at a better deal

https://preview.redd.it/covu7yvh6s971.png?width=1023&format=png&auto=webp&s=0711836d8304055739a6e278e198c835e8af75a2

14. Triple Halving

This concept describes how $ETH will undergo a supply shock equivalent to 3 #Bitcoin halving events in the next 12 months alone with the transition to POS

EIP-1559 will also play a large role in the net future decrease of $ETH sell pressure

15. EIP-1559

This UX upgrade (expected soon), could actually prove $ETH to be a deflationary asset 🔥

Furthermore, it will make gas fees much more predictable

Had it already been live, more than 2.94M $ETH would have been burnt from the supply this year alone

h/t @finematics

https://preview.redd.it/ev7ddb4k6s971.png?width=1200&format=png&auto=webp&s=a63fad183a84722627cf503f68f4885d226bbd88

16. Proof of Stake

$ETH will transition from the proof of work consensus model to proof of stake

Users can then earn interest on their $ETH by staking it, becoming a node in the network

This is the fastest growing protocol about to offer a significant dividend to investors...📷📷

17. Layer Two

There are a lot of projects working on layer two scaling solutions at an effort to bring $ETH to the next level of scaling

They focus on highly complex topics such as optimism rollups & zkproofs

Layer two solutions may have the ability to bring $ETH to 2,000 TPS

https://preview.redd.it/71bz27ol6s971.png?width=1123&format=png&auto=webp&s=8b69987a17a893b8e6658a8484ab299be783eafe

18. Platform Agnostic

One of the unique features of NFTs & more on $ETH is that they work in a platform agnostic manner

Tools can be easily integrated across a wide range of applications with easy sign in options

This will be the foundation for the transition to Web 3.0

https://preview.redd.it/2kn384mo6s971.png?width=956&format=png&auto=webp&s=954af75ac19cea7a3479e4fb8bc59cdfefe15095

19. Creator Economy

Tokenizing intellectual property and content, especially in the open source world, can be a way to monetize and show support for various people

It gives a new level of power to creators, and may push the open source industry to an entire creator economy.

https://preview.redd.it/5erfhjip6s971.png?width=1200&format=png&auto=webp&s=bac218db3d9495876eb455eec7a075912e16866c

20. Universal Market Access

Having universal access to any market is a concept not many seem to believe is possible today

It opens up a world for individuals across the globe who can no longer be censored or are unable to get financial services today, on the $ETH blockchain

https://preview.redd.it/o2q3eklq6s971.png?width=993&format=png&auto=webp&s=cdb7664049c192de7adc53c8015dc899e3c3f906

21. Adoption

Contrary to the last run of crypto in 2017, we didn’t have the real world use that blockchain is now seeing today.

IOT, DID, and DLT’s will be massive.

VISA, PayPal, & Amazon are just a few high value examples of some top companies taking an interest in $ETH tech

https://preview.redd.it/uv9c6lrr6s971.png?width=976&format=png&auto=webp&s=12ea5a599fbefb7f742f7604c008f282a569407b

22. Gaming

Whether it be currency or collectibles, $ETH & gaming go hand in hand

$GME is integrating NFTs on a massive scale & diving into esports as well

Can you imagine connecting to your favorite game with your wallet & automatically having items you’ve purchased via NFTs?

23. ETH 2.0

This upgrade introduces sharding, proof of stake, & other enhancements to the security of the network

If successful, it will add a new level of sustainability and scalability for $ETH

Furthermore, security of the network will be significantly greater for wider use

24. Supercomputer

$ETH is the world supercomputer. Vitalik took ideas from $BTC and added a programmable base layer for devs to build on top of

This continues to add a whole new level of functionality to blockchain as we know it today...

We haven’t even scratched the surface.


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