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📺 DeFi Video 👉 https://www.youtube.com/watch?v=Vq1bxcoW1jQ&t
⏰ Time Stamps ⏰
1:51 Fat Protocol Theory
10:01 Market Cap
12:44 DEX Volume
14:33 Stablecoin Supply
16:48 Gas Use
17:40 Who Is Using The Gas?
19:03 Daily Transactions
19:18 Wallets With 32+ ETH
20:20 Active Ethereum Addresses
20:34 Final Thoughts
⛓️ 🔗 Helpful Links 🔗 ⛓️
► Fat Protocol Theory: https://www.usv.com/writing/2016/08/fat-protocols/
► NFT Video: https://www.youtube.com/watch?v=E6gLSIyyiE0&t
► CoinGecko: https://www.coingecko.com/en
► Etherscan DEX Tracker: https://etherscan.io/stat/dextracker
► Etherscan Token Tracker: https://etherscan.io/tokens
► DeFiPulse: https://defipulse.com
► Glassnode: https://studio.glassnode.com/metrics?a=ETH&m=fees.GasUsedSum
► EthGasStation: https://ethgasstation.info
► Non Fungible: https://nonfungible.com/market/history
► Ethereum Daily Transactions: https://etherscan.io/chart/tx
📝 Overview 📝
Should you be buying more Ethereum? Well, that depends on whether it’s overvalued or not. But how can you value it? In this video, I give you my two Satoshi’s on that.
📘 Fat Protocol Theory 📘
I believe this theory to be one of the most important concepts in crypto. The theory looks back at the traditional internet and how shared protocols like TCP/IP created immeasurable value, whilst failing to capture any of it.
So where was the value captured? Well, by applications like Facebook and Google. Another key question is why? Honestly, the answer is that these applications generated and captured huge amounts of data, which was then monetized.
The theory argues that on the internet value escapes at the protocol layer and slows to the data providers and marketplaces AKA the applications. So, the internet we have today has skinny protocols and fat applications – which have captured most of the value.
However, in the blockchain world, the roles are reversed and we have fat protocols and skinny applications. This is because in crypto we have a shared data or protocol layer which benefits from immutability and publicly available transaction data. The second reason is that we have crypto tokens to access this protocol layer. This means that protocols like Ethereum can actually value capture through their ETH token.
If you want to learn more about the ins and outs of this theory, then you should certainly watch this video!
🔭 Ethereum Metrics To Watch 🔭
So, what Ethereum network demand metrics should you be keeping an eye on to anticipate future value capture? Here’s my top ten.
🔟 Ethereum’s market cap
This gives a rough idea of what the market is valuing the Ethereum protocol at. Check out CoinGecko as an alternative to CMC here.
9️⃣ Decentralized Exchange Volume
A ton of people believe that DEXs are going to be the next big thing in crypto. So it’s probably a good idea to monitor that DEX transaction volume using Etherscan.
8️⃣ Stable Coin Supply
These are primarily used for trading and you can use Etherscan’s token tracker to keep your finger on the pulse of that market.
DeFi is already huge with around a billion dollars worth of value locked up in it. Use DeFiPulse to monitor this sector’s growth.
6️⃣ Ethereum Gas Use
Gas is used for transactions and to power dApp’s. More gas use shows greater demand for the Ethereum network. You can track all that with Glassnode.
5️⃣ Biggest ETH Users
Transactions can be a blunt metric if used alone. That’s because scams or transaction spammers could be using up a massive amount of gas, but generating little to no value to the network. You can use EthGasStation to monitor that.
Has the potential to bring millions of gamers to the Ethereum network. Check out the growth of this market using nonfungible.com.
3️⃣ Daily Transactions
Shows how popular the Ethereum network is.
2️⃣ Wallets With More Than 32 ETH
Watch my video to find out why.
1️⃣ Active Ethereum Addresses
The higher this number, the more the Ethereum network is being used and the greater its theoretical value.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.
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