polynya
@polynya
Crypto is a maturing industry, and most economic value is generated by financial applications - chiefly SoV. Non-financial apps, L2s etc. are great for consumers, but a vast majority of ETH's value will come from institutions/whales using financial apps on the L1 itself. See: BTC, still dominant with 0 scaling.
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polynya
@polynya
Note that I specifically mention "chiefly SoV" as the leading financial application. This does not require active chain activity - just hold, like BTC. While ETH has more demand vectors than BTC, this is still the dominant one, and anciliary high-value DeFi also infrequent and insensitive to fees for large players.
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Jon Charbonneau
@joncharbonneau
BTC dominant w/o scaling but doesn’t require using chain much Tougher time seeing parallel for long-term app activity on Ethereum L1 remaining as dominant Maybe possible if they’re increasingly really mostly offchain apps (eg uniswapx, coprocessor style, etc) blurring line of L1/L2 anyway
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stringtheory
@stringtheory69
What do you think first few will be or maybe they are already there?
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Rico
@rico-mueller
What do you think will be the impact of L2 activity post-EIP 4844 on economic value of ETH vs. the SoV element? Is it like 90% SoV and 10% the rest, or do you see it more balanced?
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j-rod
@j-rod.eth
Yes, Bitcoin is a store, and Ethereum is for conditions they both will be utilized and become settlement layers for international trade, and multimillion transactions eventually. Ethereum's true value accrual is a ways off, but when the capital flight of Finance from fiats starts to occur, it will be world changing.
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