Jag 🦇🔊 Profile picture
Aug 5, 2022 26 tweets 20 min read Read on X
[1/26] I was listening to @RyanSAdams and @TrustlessState on a past @BanklessHQ (I’m a huge fan) podcast episode on #TheMerge & #Ethereum

Sentiments are bullish on $ETH. But does on-chain reflects so? Lets use @nansen_ai smart money and other tools to evaluate 🧵👇👇👇
[2/26] Before that, here are what I’ll cover:

- On chain analysis with Nansen
- Fundamental analysis
- Tokenomics
- Developer activity
- Narrative of #Ethereum
- Summary
[3/26] Lets kick things off using @nansen_ai, $WETH is the undisputed fave token of smart money by far at 60% of their holdings with a clear accumulation uptrend spike from mid Apr onwards
[4/26] Digging further, the majority of smart money held $WETH for the longer term, with 76% of tokens held for 1-2 years or more. They are #Hodlers and optimistic on Ethereum.

Unique addresses have increased from 150K+ to almost 490K within a 1 year time span.
[5/26] At present, 13.2M $ETH (~$21.6B) is deposited for staking, highest among PoS chains. And almost 100% increase Y.o.Y with @LidoFinance, @krakenfx, @staked_us and @stakefish the largest depositers among a total of 77.7K unique depositors

Clear sign of investor confidence.
[6/26] ETH2 beacon chain is also the most decentralised PoS chain in terms of total numbers of validators at 412K. Competing alt L1 chains like #Solana and #Avalanche have 1,918 and 1,213 respectively.

Bodes well for #ETH security and ability to be censorship resistant
[7/26] $ETH has seen an outflow from exchanges from a balance of 24.6M in end Feb to 22.2M at present. This is seen generally as bullish with lesser coins available to sell.

And over the last month, $ETH has been up almost 50%
[8/26] Ethereum smashes the L1 competition in terms of TVL, holding a 65.32% market share with $58B TVL, far surpassing #BSC, its nearest competitor at $6.77B

@MakerDAO, @LidoFinance, @Uniswap, @CurveFinance and @AaveAave, collectively holds 56% of TVL on #Ethereum
[9/26] With so many #dApps usage on #Ethereum, it is no wonder that it is by far the most dominant L1 blockchain with the highest total revenue ($10B) and protocol revenue ($8.5B) over 365 days.
[10/26] Here’s how Ethereum stacked up against its nearest competitors:

Revenue - 1028.5 % more than #BinanceSmartChain
Protocol Revenue - 6463.7 % more than #Avalanche
[11/26] Tokenomic-wise, supply growth of Ethereum is currently at 4.3%

$ETH is set to be deflationary after #TheMerge and supply growth will reduce to 0.2% as we will see more ETH destroyed via fee burn than ETH is created via issuance.
[12/26] As $ETH will become deflationary with the transition from Proof of Work to Proof of Stake, it will become a truly ultra sound money with an ongoing decreasing supply
[13/26] With reduced issuance (-90% from 15K ETH/day to ~1.5K ETH/day) post merge, not only does Ethereum faces drastically less selling pressure (from miners) as before, it is also set to be the first profitable blockchain when its protocol revenue outrun its issuance cost
[14/25] Lets move to evaluate the potential profit margin of ETH blockchain after the merge.

As we do not know the actual total revenue and protocol revenue in future, we will take the past 30 days revenue as a reference to attempt to derive a rudimentary value of profit margin
[15/26] Last 30 days

- Total revenue (30 day) = $107.5M
- Total protocol revenue (30 day) = $77.54M
- Issuance cost (30 day) = 1.5K ETH x 30 x $1,640 = $73.8M

Profit margin = ($77.54 - $73.8M)/$107.5M = 3.48%

A positive return on profit margin at last!
[16/26] We are now in the midst of the bear market which has a reduction in transactions which in turn adversely affects #Ethereum protocol revenue and profit margin.

When the market picks up, we should see these metrics go up too
[17/26] Quite a feat considering it does so without compromising on security! In fact, it will likely be the most secure PoS chain with the highest $ amount staked and the highest number of validators.
[18/26] Post-merge, Ethereum will also consume ~99.95% less energy than before and transit to a green and environmentally friendly blockchain

This helps overcome a big stigma critics attach to crypto given the worsening global warming issue and brightens up the $ETH narrative
[19/26] To add to the overall positivity of #Ethereum, the total amount of put and call contracts on ETH surpassed BTC for the first time on July 28!
[20/26] Importantly, Ethereum has continued to show strong development activities and contributors count relative to #Bitcoin, #Solana and #Avalanche @santimentfeed
[21/26] Beyond that, Ethereum has an extremely vibrant L2 scaling ecosystem (TVL of $4.87B and increasing) with the likes of @0xPolygon, @optimismFND, @arbitrum and @StarkWareLtd offering users lower cost and faster transactions.

Here’s a L2 lowdown:
l2beat.com
[22/26] To summarize, on-chain evidence has shown #Ethereum investors and the smart money to be bullishly optimistic of its future.

They put the money where their mouth is in terms of the high amount being staked and rising no. of validators’ participation over the long term.
[23/26] Fundamentally, it’s also hugely impactful that Ethereum is set to be the 1st profitable blockchain after #TheMerge.

Blockchains are not exempt from being sustainable and profitability is important! It disproves naysayers from saying that blockchain have no fundamentals!
[24/26] Advances in #zkEVM tech will supercharge scalability and cost efficiency with @0xPolygon, @Scroll_ZKP and @zksync leading the way. Expect to see user adoption and developer activities increase in the long term

All in all, the future for $ETH ecosystem shines brightly!
[25/26] Lastly I like to give a shout-out to @BanklessHQ episode for the interview with @VitalikButerin who BTW opines that #TheMerge is not priced in yet.

@RyanSAdams and @TrustlessState are just awesome for giving away so much value in their podcast

[26/26] If you found value from this 🧵, please give the original post a “like” and “retweet”. Appreciate it! 👇👇👇

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Jag 🦇🔊

Jag 🦇🔊 Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @blocksaurus1152

Aug 8, 2022
1/6 This is a great alpha thread. But so many notions, so many articles, videos etc can be simply overwhelming. Sometimes I feel like I’m drowning in the never-ending tsunami of #crypto info.

How do I keep myself organized? 🧵👇👇👇
2/6 Enter @instapaper. It allows you to save web articles and videos in an organized and easy-to-read fashion which you can read later.

instapaper.com
3/6 Basically save anything in a single click and read anywhere.

It supports iOS and Android App. You can use Google Chrome/Brave extension
Read 7 tweets
Aug 7, 2022
@TiffanyAndCo #NFTiff is the highest volume NFT collection over a 7 day period
Some of NFT’s Smart Money has gotten into the action
Current floor price is 29.9 ETH
Read 5 tweets
Aug 7, 2022
1/ The #Solanahack via a compromise on the Slope wallet has driven home the importance of using a cold wallet to secure your 24 words secret phrase.

@Ledger is one good cold wallet. But most don’t know about or use its additional “25th word” security feature. Quick 🧵👇👇👇
2/ The “25th” word is an advanced feature known as a “Passphrase”. It adds an additional layer of security on top of the base 24 words secret phrase. You can see it as a 2nd factor authentication if you will 🔐
3/ If by any chance your 24 words secret phrase is compromised, the hacker cannot get to your crypto assets as the 25th word is missing. The 25th word is entirely up to your creativity to create (unlike the 1st 24 words).
Read 9 tweets
Jul 29, 2022
[1/25] Blockchain is transparent. This gives rise to the ability to gather intelligence on whales 🐳 and smart #Crypto investors’ activities. And ride on their coattails.

This thread will focus on Nansen’s smart money feature along with other complementary tools.

🧵👇👇👇
[2/25] We will be covering:
- Nansen’s tool to gather intelligence
- Examples of smart traders/investors
- Other complementary tools for more insights
- Summary of tools covered
[3/25] To use Nansen productively, it’s important to understand the various wallet labels (e.g. Elite Dex Trader, ETH millionaire, Legendary NFT Collector etc)

Here’s an example of wallet labels attached to a wallet‘s address.

Further reading on labels:
nansen.ai/guides/wallet-…
Read 25 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us!

:(