Tonight I came across another long post by Vitalik
He wasn’t calling for a bull or bear market
He was explaining again how ETH should be understood
At 8:06 p.m. Beijing time
He said ETH should be seen more as a store of value than as a token whose fees are burned
Three points, pretty straightforward
First, the burn floor isn’t as solid as people imagine
A lot of what was burned from 2021 to 2023 came from NFTs and DeFi projects within the crypto ecosystem
When prices fall, people’s ability to pay falls too
Second, if burns are meant to support a market cap of around $270 billion
Ethereum would have to operate like a large corporation
It would need to spend roughly 700,000 ETH a year on R&D
Validator revenue could drop by two-thirds
Third, the store-of-value narrative is what aligns with decentralization, censorship resistance, and resistance to capture
He explicitly said EIP-1559 should stay
Don’t be discouraged if burns never reach even one-tenth of breakeven in the long run
Value isn’t found on the burn dashboard
ETH is still hovering just above 2,230 for now
I’ll keep this line of reasoning in mind
But I won’t treat it as a trading signal 👀
$ETH
He wasn’t calling for a bull or bear market
He was explaining again how ETH should be understood
At 8:06 p.m. Beijing time
He said ETH should be seen more as a store of value than as a token whose fees are burned
Three points, pretty straightforward
First, the burn floor isn’t as solid as people imagine
A lot of what was burned from 2021 to 2023 came from NFTs and DeFi projects within the crypto ecosystem
When prices fall, people’s ability to pay falls too
Second, if burns are meant to support a market cap of around $270 billion
Ethereum would have to operate like a large corporation
It would need to spend roughly 700,000 ETH a year on R&D
Validator revenue could drop by two-thirds
Third, the store-of-value narrative is what aligns with decentralization, censorship resistance, and resistance to capture
He explicitly said EIP-1559 should stay
Don’t be discouraged if burns never reach even one-tenth of breakeven in the long run
Value isn’t found on the burn dashboard
ETH is still hovering just above 2,230 for now
I’ll keep this line of reasoning in mind
But I won’t treat it as a trading signal 👀
$ETH
