Thread by @RyanBerckmans

1/ Ethereum's fees are a sleeping giant

Ethereum's fees
- are currently worth ETH at $2500
- grew 150x over the past fifteen months
- begin accruing to ETH holders when EIP-1559 launches later this year

imo, fees will soon greatly help us get to ETH at $20k. Here's how 👇

2/ Ethereum's fees grew 150x over the past fifteen months. The net present value of the run rate of last week's fees is worth ETH at $2500 (using a 3% discount rate), a 50% premium over today's ETH price. However, currently these fees accrue to miners, not ETH holders.

3/ Last week, ethereum's daily fees were $24M, and total miner compensation (fees + block rewards) was $47M in ETH. On average, miners must sell all that ETH to pay for their hardware and electricity. That's $47M of ETH sell pressure from yesterday alone.

4/ Once EIP-1559 launches later this year, ~80% of last week's $24M in daily fees begins accruing to ETH holders via fee burn. When ethereum switches to proof of stake in two years, the rest of that $47M in miner compensation begins accruing to ETH holders via no more PoW expense

5/ As fees continue to grow, EIP-1559 launches later this year, and ethereum transitions to proof of stake in two years, the fees accruing to ETH holders seems likely, imo, to propel ETH to $20k.