In this episode, the host, Anthony S., discusses the latest market dynamics in the Ethereum ecosystem, with Ethereum (ETH) breaking out of its long-standing price range. He also touches on Bitcoin’s (BTC) strength, attributed to excitement around ETFs. Anthony shares his long-term investment philosophy and discusses the potential impact of an ETF approval on market volatility. He also introduces ZK Email and its V1 SDK, which powers ZK P2P and email wallet.org, and addresses the recent FUD surrounding Ethereum.
Ethereum’s Breakout and Market Dynamics
- Ethereum’s Price Movement: The host notes that Ethereum has broken out of its long-standing price range, reaching $2,265, the highest since May 2022. It has been 574 days since ETH was last at this price level.
- Bitcoin’s Strength: Bitcoin is also highlighted for its strength, attributed to excitement around ETFs, with its price at $42,000 at the time of recording.
- Market Dynamics: The host explains market dynamics, including FOMO trades, where investors rush into outperforming assets like BTC, which can signal a market top as sophisticated investors begin to take profits.
Investment Philosophy and Market Predictions
- Investment Philosophy: The host shares his long-term investment philosophy, which involves buying during stagnant periods (“crabs”) and selling when the market gets hot, acknowledging that while it sounds simple, timing the market is difficult.
- Market Predictions: Anthony speculates on market movements, suggesting BTC could correct to $35,000 before spiking again, and emphasizes the unpredictability of market cycles.
ZK Email and Privacy Applications
- ZK Email Introduction: The host introduces ZK Email and its V1 SDK, which powers ZK P2P and email wallet.org, highlighting the potential of ZK technology beyond scaling, particularly in privacy applications.
- Privacy Applications: ZK technology is praised for enabling privacy-focused use cases such as decentralized KYC/AML and the verification of truths without needing personal information, which the host believes is more impactful than its use in scaling.
Addressing Ethereum FUD
- FUD Surrounding Ethereum: The host addresses the recent FUD (fear, uncertainty, and doubt) surrounding Ethereum, encouraging builders to continue their work despite criticism and misinformation on platforms like crypto Twitter.
- Decentralization of Ethereum’s Layer 2 Solutions: The host criticizes those who doubt the decentralization of Ethereum’s layer 2 solutions, arguing that such skepticism is either uninformed or motivated by a desire to disparage Ethereum for competitive reasons.
Ethereum and Layer 2 Metrics
- Layer 2 Metrics: The host transitions to discussing Layer 2 (L2) metrics, countering the narrative that L2s are failing or not being used by showing data from various tracking sites.
- Ethereum’s Metrics: Ethereum’s own metrics, such as active addresses and transaction count, are also highlighted as performing well, with the transaction count limited by the gas limit.
- Ethereum Fee Revenue: The host focuses on Ethereum fee revenue as a metric that is difficult to fake or manipulate, pointing out that since the merge, Ethereum has been net deflationary, burning over a million ETH.
- Bullish: The host expresses a bullish sentiment towards Ethereum, noting its breakout from a long-standing price range and the potential impact of an ETF approval on market volatility. He also praises the potential of ZK technology beyond scaling, particularly in privacy applications.
- Bearish: Despite the overall bullish sentiment, the host expresses caution, suggesting the market may be overheated, especially for BTC, and anticipates a potential dump that could reset the market and liquidate over-leveraged positions.
- Neutral: The host maintains a neutral stance on the timing of market cycles, emphasizing their unpredictability. He also refrains from naming a favorite wallet but expresses dissatisfaction with MetaMask, stating it lags behind the competition in terms of features.