The reason ETH sells off more in these “doom” scenarios — the ZEC bug, a Saylor BTC sell-off, a stock market sell-off, etc. — is, ironically, the same reason ETH will ultimately win.
We’ve seen this a thousand times already, and the question always comes up: Why is ETH dumping more than expected?
Simple answer: It’s the most liquid asset in DeFi. It’s the hardest money we have, and people sell it first when shit hits the fan and they need more liquidity in the market.
So why don’t people sell their shitcoins, you ask? Why do they sell their ETH?
Well, try selling your shitcoins in a down market. There simply isn’t enough liquidity for large holders to offload anything meaningful. ETH is their only option.
ETH is structurally the most important asset crypto has. Bitcoin is barely a side note here. You simply can’t use BTC natively in DeFi.
So why is ETH not eternally doomed?
Over time, this leads to an insane distribution of ETH into hundreds of millions of hands, making it much more resilient — and, incidentally, making it a kick-ass store of value.
Yes, you can offload hundreds of millions of dollars in BTC easily as well. But can you buy literally any other asset you want with the click of a button, trustlessly?
No. You need to go through CEXs and/or jump through hoops to do that.
ETH is the only native collateral for DeFi and the only logical digital store of value for crypto — and, eventually, the world.
ETH is money.
I read this article thoroughly, and it is the exact representation of why crypto is still failing.
David is an incredible person, and his thoughts are commendable.
That said, I believe many people look at crypto in a very philosophical and theoretical way.
Had we started treating crypto as a practical financial unit as a whole, I genuinely believe we would have been in a much better place.
As much as it hurts to admit, there is no such thing as decentralization when “intent,” whether from humans or robots, exists. Yes, we are naturally pulled toward centralization, and no amount of infrastructure complexity can actually solve that.
Crypto is not freedom, and there is no such thing as freedom when “money” as a concept exists and dictates our financial relations.
Focusing on $ETH, it is true that @ethereum has some flaws, but it still remains the project with the most potential out there.
Neither $BTC, $ETH, nor any other crypto is replacing fiat. Why? Because there is no real UVP out there.
▫️The DeFi framework failed
▫️Decentralization failed
▫️Fiat destruction failed
But Ethereum did create an ecosystem through smart contracts, protocols, and EIPs that could lead to an ecosystem where $ETH becomes relevant and therefore creates value and appreciates.
I will write a longer article on why I believe Ethereum and ETH remain an amazing proposition for future financial business models.
In all cases, all respect to @TrustlessState for his take, and I will do a deep dive into what @VitalikButerin wrote as well
🦅 The $WLFI unlock schedules are LIVE.
You can now activate your schedule for your remaining token allocation.
Connect wallet → sign agreements → access tokens per the approved schedule.
Unlock here: https://t.co/2yin3qD676