Hi HODLers, Hiveans and Lions,
After a very successful first Leveraged Trade in $IMX as it went up 25/30% over just 3-4 days. FYI: I still hold sizeable positions in $IMX but I kept these tokens.
https://inleo.io/threads/view/vlemon/re-leothreads-22tqrs1wb
I have been looking for a new idea and narrative. I have found one which is very straightforward and seems to have a great risk/reward.
$ETH is UltraSounds Money
This was the main narrative for the merge and after the merge. To sum it up, fees went down but activity was up, therefore a part of the fees where used to burn ETH tokens.
The main result was that when activity on the #ethereum network was medium to high, Ethereum was becoming a deflationary asset. I loved it as it felt like ETH was becoming an hybrid asset between an App layer with cool things and a reserve asset like #Bitcoin.
As time passed and the burn was getting lower, people forgot about it.
As we have had quite an upmarket lately, volumes, news apps and prices were all trending positively. A lot of the activity is happening on Layer 2 but these layers still have to use Ethereum to confirm and validate some of their own transactions. Base, Optimism, Arbitrum, ImmutableX, Polygon, etc... All of these apps do use $ETH in their normal business operations.
ETH Burns are trending up and few have noticed yet.
Which apps are burning $ETH?
I love #ethereum as any Crypto investor and I have yet to see a lot of tweets and articles explaining how ETH supply is shrinking.
Investment Case Thesis
- Let's be honest, it is shrinking slowly (-0.55% annual rate over the last 7 day period)
- Even if demand stays constant (which I think it will not), $ETH should go up
- A lot of new layer 2s are driving this new upmarket and this will continue. Retail did not even come yet and we are deflationary? Imagine during the 3-4 weeks or complete Bull Market exhuberance?
- ETH price lagged the entire CryptoMarket so far, this could be a narrative switch which would bring investors to buy more ETH.
Let me know your thoughts!
In the meantime, stay safe out there,