Vitalik has changed his tune, positioning ETH as an asset like gold because the amount burned this year is over 99% lower than last year.
I just talked about this a couple of days ago, and now there’s a new development. Vitalik Buterin suddenly redefined ETH in public as a “store-of-value asset,” a shift from his earlier “ultrasound money” narrative. According to PANews, only 13,000 ETH have been burned so far this year—over 99% less than in 2022. For context, nearly 1.2 million ETH were burned last year. This is mainly because Layer 2 networks are taking transaction fees away, significantly reducing activity on the mainnet and the amount of ETH burned. ETH now has a market cap of $260 billion—it’s certainly a big prize.
Market impact
- Short term: These remarks could further boost sentiment around ETH. After all, “store of value” is Bitcoin’s signature strength, so investors may feel that ETH is following in BTC’s footsteps.
- Medium term: The industry landscape could shift. Other public chains that want to become store-of-value assets may need to learn from ETH’s approach, such as continuing to develop L2s or introducing staking mechanisms. Given the regulatory climate, regulators may be more accommodating toward positioning ETH as a similar kind of asset.
My take
ETH does seem more like a store-of-value asset now, especially given the sharp drop in the amount burned. Don’t come down too hard on me if I’m wrong—I’m only trying it with a small position myself. After all, L2-driven migration is a long-term trend. If ETH can establish itself as “hard money,” its $260 billion market cap may only just be beginning to reflect its value. I’m 70% confident in this view; I’ll leave the remaining 30% to the market.
$BTC $ETH #BTC #ETH
⚠️ This is not investment advice
I just talked about this a couple of days ago, and now there’s a new development. Vitalik Buterin suddenly redefined ETH in public as a “store-of-value asset,” a shift from his earlier “ultrasound money” narrative. According to PANews, only 13,000 ETH have been burned so far this year—over 99% less than in 2022. For context, nearly 1.2 million ETH were burned last year. This is mainly because Layer 2 networks are taking transaction fees away, significantly reducing activity on the mainnet and the amount of ETH burned. ETH now has a market cap of $260 billion—it’s certainly a big prize.
Market impact
- Short term: These remarks could further boost sentiment around ETH. After all, “store of value” is Bitcoin’s signature strength, so investors may feel that ETH is following in BTC’s footsteps.
- Medium term: The industry landscape could shift. Other public chains that want to become store-of-value assets may need to learn from ETH’s approach, such as continuing to develop L2s or introducing staking mechanisms. Given the regulatory climate, regulators may be more accommodating toward positioning ETH as a similar kind of asset.
My take
ETH does seem more like a store-of-value asset now, especially given the sharp drop in the amount burned. Don’t come down too hard on me if I’m wrong—I’m only trying it with a small position myself. After all, L2-driven migration is a long-term trend. If ETH can establish itself as “hard money,” its $260 billion market cap may only just be beginning to reflect its value. I’m 70% confident in this view; I’ll leave the remaining 30% to the market.
$BTC $ETH #BTC #ETH
⚠️ This is not investment advice
