"We need ETH to pump for an alt szn."
Let's look at the reality of the situation here.
ETH's valuation is bloated.
There has been backwards steps over the last few years as they gave up all of their revenue to L2s, and didn't scale the L1. Leadership problems are evident, and they face technical challenges all over the place.
There hasn't been enough innovation and adoption to justify a $400-500B market cap (this is an astronomical valuation in real world terms and places it in the top 20 global companies by market cap). "ETH is money" was a hopeful meme aimed at deflecting the narrative away from real tech issues.
This was clear to anyone that looked very closely at the fundamentals in the bear market.
Blockchains are treated like religions, but they are just tech.
Tech needs to solve problems and improve the lives of people in the world.
Capitalism rewards innovation with money. If you innovate and that product is a hit in the market, the number goes up.
Solana's product was a hit with gamblers and traders this cycle, and therefore SOL went up. In order for SOL to reach even higher market caps then Solana will also have to attract more users via other use cases.
Ethereum's product used to be a hit with gamblers and traders, but it hasn't replaced that lost use case with something to match it yet (tokenization, RWAs and institutional DeFi is still a strong possibility in the future).
There is a cohort of crypto traders that provide immense liquidity to the market that want to use ETH going up as a trigger for more risk, and retail traders also want to follow this signal because this is how it worked for a couple of cycles.
But every cycle is different, and these individuals haven't adapted to the new reality of the current market.
Ethereum is under pressure, and has serious competitors proving the viability of their tech, and no L1 token is money today.
I use Ethereum and L2s today. I find the chains useful as a heavy DeFi user, but I can still be objective about the reality of the situation.
Maybe if we get an insane period of money printing later in the year, then valuations can become dislocated from the underlying fundamentals again.
But for now "we need ETH to pump for an alt szn", is another way of saying you are a bad asset selector.
Even if you ignore some of the more speculative vapour that went up over the last 6 months (these certainly look like alt szns, just not as widespread), a fair few tokens with solid fundamentals have beaten BTC (AAVE, RAY, HYPE etc), and they are tokens with real businesses that you can hold.
There is always an alt szn going on somewhere. This mentality will help you far more than praying for ETH to go up so your underperforming bags can find a bid and you can hopefully dump an unsuspecting fool later on.
Let's look at the reality of the situation here.
ETH's valuation is bloated.
There has been backwards steps over the last few years as they gave up all of their revenue to L2s, and didn't scale the L1. Leadership problems are evident, and they face technical challenges all over the place.
There hasn't been enough innovation and adoption to justify a $400-500B market cap (this is an astronomical valuation in real world terms and places it in the top 20 global companies by market cap). "ETH is money" was a hopeful meme aimed at deflecting the narrative away from real tech issues.
This was clear to anyone that looked very closely at the fundamentals in the bear market.
Blockchains are treated like religions, but they are just tech.
Tech needs to solve problems and improve the lives of people in the world.
Capitalism rewards innovation with money. If you innovate and that product is a hit in the market, the number goes up.
Solana's product was a hit with gamblers and traders this cycle, and therefore SOL went up. In order for SOL to reach even higher market caps then Solana will also have to attract more users via other use cases.
Ethereum's product used to be a hit with gamblers and traders, but it hasn't replaced that lost use case with something to match it yet (tokenization, RWAs and institutional DeFi is still a strong possibility in the future).
There is a cohort of crypto traders that provide immense liquidity to the market that want to use ETH going up as a trigger for more risk, and retail traders also want to follow this signal because this is how it worked for a couple of cycles.
But every cycle is different, and these individuals haven't adapted to the new reality of the current market.
Ethereum is under pressure, and has serious competitors proving the viability of their tech, and no L1 token is money today.
I use Ethereum and L2s today. I find the chains useful as a heavy DeFi user, but I can still be objective about the reality of the situation.
Maybe if we get an insane period of money printing later in the year, then valuations can become dislocated from the underlying fundamentals again.
But for now "we need ETH to pump for an alt szn", is another way of saying you are a bad asset selector.
Even if you ignore some of the more speculative vapour that went up over the last 6 months (these certainly look like alt szns, just not as widespread), a fair few tokens with solid fundamentals have beaten BTC (AAVE, RAY, HYPE etc), and they are tokens with real businesses that you can hold.
There is always an alt szn going on somewhere. This mentality will help you far more than praying for ETH to go up so your underperforming bags can find a bid and you can hopefully dump an unsuspecting fool later on.
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