Thread by @CroissantEth

Upcoming catalysts for $ETH within the next year (in no chronological order)

A thread by 🥐

NFTs

Currently, NFTs are reminiscent of the early stages of DeFi

There are thousands of devs & even many large companies building NFT platforms

We haven’t even scratched the surface of what can be made

Nvidia, GameStop, & Twitter have discussed intentions to use them soon

EIP-1559

This EIP is arguably one of the biggest ever. More than 2.9M $ETH would have been burnt this year had it been live

It will change how txs work, at an aim make gas fees more predictable and stable

The massive UX upgrade will turn $ETH into a deflationary asset🔥

Supply on Exchanges

$ETH on exchanges has continually reached new lows, with the total balance now reaching levels not seen since 3 years ago

This trend is expected to continue with all of the upcoming developments including EIP-1559 deflation, staking, & much more!

$ETH In Smart Contracts

A staggering 26% of $ETH is locked in smart contracts in dApps on the network

That’s $57.7B worth of assets, up from 15% at the beginning of this year

The rate of which this is happening will only increase as more protocols are created requiring $ETH

Synthetics

$ETH offers a solution to investors who want access to a wide variety of markets they would otherwise not have access to

Synthetics give access to markets free of censorship, regulation, or centralization

This is a concept unbelievable to most unfamiliar with $ETH

Tokenization

This is a huge use case for $ETH, especially with the explosion of NFTs

Any asset class can be represented as tokens on the $ETH network easily, with programmable options fitting any use

It also has the ability to create a liquid market for new types of assets

Zero Knowledge Proofs

One of the most promising of scaling solutions for $ETH is zero knowledge proofs

zkSync is leading the effort with an EVM compatible rollup expected in August

The rollup may have the ability to increase security on the network, & scale it to 10,000+ TPS

VISA + $USDC

In a massive announcement made just a few months ago, VISA became the first large payments network to accept transaction settlement in $USDC

There are an astounding 3.3B VISA cards in use, with only 163M wallets on $ETH

This is one of many announcements to come

Layer Two

Hundreds of projects have been created for the sole purpose of bringing $ETH to the next levels of scaling

They argue to have the capability of 100,000+ TPS when used in combo with sharding.

That is unbelievably fast, compared to today’s ~15 TPS (transaction per sec)

Proof of Stake

What if I told you the worlds fastest growing startup was about to offer dividends upwards of 5% APY for shareholders?

Well, that’s $ETH

With proof of stake it will offer rewards to stakers who lock up their tokens

Already, 5.4% of $ETH has been locked for this

Interchain Accounts

Teams are working on the framework to allow for a multitude of POS blockchains to unlock their value

$ETH smart contracts may be used by the billions in liquidity from POS blockchains through interchain accounts & interoperable liquid staking derivatives

Smart Contract Wallets

This is something I think we will begin to see more use of in a matter of weeks

These are wallets maintained by contract code, rather than a private key

They will allow for users to enjoy various things such as gas-less txs, multi sigs, and much more

Sharding

A concept popular in computer science, sharding will split the network into “shards” to increase its ability to store lots of data

It will phenomenally increase tx speeds on the network

You can think of this like running 64 blockchains parallel with the beacon chain

Triple Halving

$ETH will undergo a massive supply shock equivalent to a total of 3 halving events for $BTC

This is a 90% drop in sell pressure from miners thanks to changes to $ETH including POS, deflation, as well as liquidity

It will be known as the “triple halving”

Interoperability

Interoperability is slowly becoming seamless, and $ETH may become the “go to” standard for all your DeFi needs

Protocols may simply offload smart contract capabilities to $ETH while benefiting themselves from a more capital efficient ecosystem

Store of Value

There is a growing narrative amongst big players that $ETH is a better store of value than $BTC

GOLDMAN SACHS:

“Given the importance of real uses in determining store of value, ether has high chance of overtaking bitcoin as the dominant digital store of value”

Environment

While debatable, this argument has sprung up a lot for the #Bitcoin crowd, with skeptics claiming that mining is bad for the environment & inefficient

These arguments will not hold true for $ETH after the upgrades, which aims to be much more sustainable & efficient

Development

$ETH has grown the largest growing ecosystem of developers on the blockchain out of any other protocol

(Yes, even more than $BTC)

In fact, since Q3 2019 $ETH has gained more than 300 developers every month!

Bear market = Bull development

$BTC on $ETH

If the other numbers in this thread weren’t enough to impress you, just take a look at the absurd number of $BTC on $ETH

The holders who wrap their $BTC to $ETH can participate in a wider economy & take advantage of DeFi, while maintaining their exposure to $BTC

Institutions

There are arguably much better solutions for institutional adoption of cryptocurrency with $ETH over #Bitcoin

It is a lot easier to “dip your toes in” by earning 4% APY on their holdings in a token that is denominated in USD, compared to just holding $BTC

Projects on $ETH

Believe it or not, more than 90 of the top 100 crypto projects are built on $ETH, with more than:

-3,000 dapps

&

-200K ERC20s

Still not impressed? Well, a large majority of these projects also include extensive use cases for $ETH 👀

Capital Efficiency

This issue has been the topic of a lot of concerns lately, addressing a somewhat largely ignored part of the market

A lot of liquidity is segmented & limited, but hundreds of protocols such as Andre’s Deriswap will change everything as we know it (alpha) 🥐

DeFi Adoption

Despite what many people may like to think about this, we are so dramatically early that it should not be understated

There are as little as 3M wallets having ever interacted with DeFi contracts

We haven’t even begun to discover what can be made with $ETH tech

TLDR?

$ETH has some extraordinary things coming up that almost no one is talking about

It’s unfathomable to me how people believe this market is at all the same to what it was 3 years ago

If there is a bear market, it won’t last long at these levels.

I hope you all enjoy! 🥐