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SHIB is just a flash in the pan, Ethereum is the ultimate currency



In April, the earnings performance of ETH far exceeded that of BTC, and the exchange rate of ETH-BTC trading pair rose from 0.03 to 0.06. The slogans and opinions about "the market value of Ethereum surpassing Bitcoin/Flippening" became active-zce again in the market. But it is worth noting that the slogan "Ethereum's market value surpasses Bitcoin/Flippening" came into being in 2017. At the time of the bull market, although Bitcoin had always been the king of coins, its market value continued to decline. Ethereum enthusiasts had an idea and shouted the slogan "Flippening", thinking that Ethereum can achieve corner overtaking by relying on the infinite possibilities of its smart contract platform. However, in recent years, it is still subdued by Bitcoin. Then why have the slogans continued to be shouted again? Of course, it is not the reason for the rise in the exchange rate of the ETH-BTC trading pair, and even the rise in the exchange rate is not the cause. In essence, users inside and outside the Ethereum community have foreseen the optimization of the fundamentals of Ethereum in the future and strengthened their confidence in Ethereum. Nature is the outward expression of faith. The optimization of such fundamentals can be divided into two categories: 1. Economic fundamentals: PoS transition, implementation of EIP1559 proposal, and ETH becoming a deflationary currency. 2. Ecological fundamentals: DeFi, NFTs and other ecological prosperity and the infinite possibilities conveyed; below, we will analyze these two fundamentals in detail, and try to analyze the future possibility of "the market value of Ethereum surpassing Bitcoin". SHIB can now be used to pay for Netflix and Spotify’s monthly subscriptions: Jinse Finance reports that SHIB can now be used to pay for Netflix and Spotify’s monthly subscriptions, thanks to payment gateway NOWPayments’ recurring escrow payment feature. Individuals or businesses can also take advantage of NOWpayments' recurring escrow payments to set up separate accounts for users or customers and let them top up their accounts with cryptocurrencies. [2022/12/30 22:15:45] PoS transition + EIP1559 proposal implementation = ETH turns into a deflationary currency; ETH deflationary currency + currency premium generated as an ecological base currency = Ultra Sound Money (ultimate sound currency) Ethereum is in In the PoW stage, ETH is more of a utility token, and its main function is to act as Gas for payment of handling fees. With the prosperity of ecological applications, ETH, as the basic token of the Ethereum ecology, also captures a little currency premium. There is currently no upper limit on the total amount of ETH. The daily PoW block rewards are about 13,500 ETH, the annual inflation is about 4,927,500 ETH, and the annualized inflation rate is about 4.2%. As an ever-increasing currency, in addition to serving as a service fee and capturing the currency premium of itself as the base token, Ethereum is difficult to capture other aspects of value, especially the value of value storage. As a token with a constant total amount, Bitcoin’s token value can fully capture the currency premium of the “store of value”. The Bigger Entertainment team will destroy more than 210 million SHIB on December 26: On December 24, Bigger Entertainment founder and owner Steven Cooper announced that his team intends to destroy 211,666,467 SHIB on December 26. On December 13, the total number of SHIB in the burn pot was 131,236,842. Since then, its growth rate has been slightly more than 1.5 times. Cooper also said that if 7,500 SHIB holders each paid $5 for a ticket to the burn party, the team would be able to burn a full billion SHIB. But that doesn’t seem to be happening, so the number of tokens burned on Sunday is now closer to 212 million SHIB, which is 800 million shy of the original goal of 1 billion. The Destruction Party will be broadcast live on YouTube at 2pm on the 26th. Cooper also concluded that the Bigger Entertainment team has destroyed a total of 868,049,623 SHIB since October this year after the SHIB in the destruction pool was sent to a dead address. (U.Today) [2021/12/24 8:02:26] If the EIP1559 proposal is successfully implemented in July, then ETH will take the first step as a deflationary currency. The EIP1559 proposal divides the original Gas fee structure into two parts: base fee (BaseFee) and miner tip (Tip), in which the base fee will be completely destroyed: movie theater giant AMC will accept SHIB as a payment option: Golden Finance Report, AMC Cinemas CEO Adam Aron has confirmed that the cinema giant will add SHIB as a payment method during its earnings call on Monday. The company is already working on bringing the second largest Memo coin to its customers. "We're now figuring out how to use Shiba Inu as a currency," Aron said. This is next on our cryptocurrency hit list. ( [2021/11/9 6:41:37] According to the reference parameters given by Ethereum coordinator Justin Drake, the basic fee is expected to account for 70% of the fee structure; The daily fee income is 10,000 ETH; then after the implementation of the EIP1559 proposal, the annual burning fee is about 10,000 * 365 * 0.7 = 2,555,000 ETH; the inflation rate has roughly dropped from 4.3% to 2.1%; it can be seen from the above that in an ideal state, if EIP1559 is successfully implemented, ETH is equivalent to a halving, and the inflation rate will drop to 2.1%, which is close to the current Bitcoin inflation rate of 1.8%. Transitioning to PoS is the second step in ETH becoming a deflationary currency. If the Ethereum network is successfully switched to PoS by then, then: Cryptocurrency broker Voyager has launched SHIB: According to official news, cryptocurrency broker Voyager has listed Shiba Inu (SHIB) tokens, and SHIB can now be traded and traded on the Voyager app transfer. [2021/6/21 23:51:42] There will no longer be PoW block rewards, and the only inflation in the network comes from the additional issuance of ETH rewards to validator nodes; there are currently about 4.4M ETH in the storage contract, and we assume that the pledge contract will be The balance will reach 10M ETH. According to official data, the inflation at that time will be about 490,000 ETH, and the inflation rate will be about 0.42%. It is worth noting that the EIP1559 proposal will destroy about 2,555,000 ETH per year, offsetting the annual inflation of 490,000 ETH in PoS Rewards, that is to say, after the transition to PoS, combined with the EIP1559 proposal, ETH will be reduced by about 2,000,000 ETH per year, with a deflation of about 1.7% per year. So far, with the assistance of EIP1559 proposal and PoS transformation, ETH will enter the era of total deflation. At present, it is believed in the circle that Bitcoin with a constant total amount is a sound currency, so ETH, which has entered deflation, will be an ultimate currency, which is the origin of the narrative "Ultra Sound Money". ShipChain will join the Enterprise Ethereum Alliance: ShipChain, a blockchain-based freight and logistics platform, announced that it will join the Enterprise Ethereum Alliance (EEA). The EEA, founded by JPMorgan Chase, Microsoft, Intel and more than 20 other companies, is joining a growing number of consortium projects aimed at sharing digital records of transactions using blockchains, which are controlled by a computer. The network is maintained instead of a centralized institution. [2018/2/15] In fact, in the foreign community of Ethereum, the first one to formally discuss this narrative publicly should be regarded as the interview video of Bankless, a well-known Ethereum enthusiast community, and Justin Drake, the coordinator of Ethereum. Since then (March 22 Day), this narrative officially began to spread, and the exchange rate of the ETH-BTC trading pair also began to rise since then, which can be regarded as a kind of price discovery. Therefore, in summary, from the perspective of economic fundamentals, the implementation of EIP1559 and the switch of PoS will fundamentally change the monetary policy of ETH, making it have the same value storage properties as BTC. In addition to the function of value storage, ETH also has a prosperous ecology that BTC cannot have. The current Bitcoin is still the former Bitcoin, relying on the narrative of "digital gold" to consolidate its status as a store of value. However, the current Ethereum is no longer the former Ethereum. Ethereum has explored the bright road of DeFi, and continues to build and improve the financial Lego in the ecosystem. Now, we have a DEX with trading volume and liquidity comparable to centralized exchanges, various lending agreements, synthetic asset agreements, oracle systems, derivatives trading platforms, algorithmic stable currency agreements, and suddenly popular and NFTs that go out of the circle independently... The number of DeFi users has grown by leaps and bounds since 2020, and now it has successfully exceeded two million users. The number of DeFi users has exceeded two million | Source: Dune Analytics The total lock-up value of DeFi has repeatedly hit new highs, and the current total lock-up value is about 80 billion US dollars. DeFi Total Locked Value | Source: DeFi Pulse Although the Ethereum ecology is prosperous now, we know that everything is still early. The business on the Ethereum chain has just begun, and the vision of Ethereum’s global financial economy has just started. As the base currency in this huge commercial economy, there will be a large demand for use. Combined with the above situation of limited or even deflationary ETH supply, this supply and demand relationship is bound to be reflected in the ETH price. ETH/BTC Market Value Proportion | Source: According to data, as of writing, the market value of Ethereum is only 37.6% of the market value of Bitcoin, and there is still a long way to go. As of writing, the exchange rate of ETH-BTC fluctuates around 0.06. If the market value of Ethereum wants to surpass Bitcoin, the exchange rate must rise by at least 169.22% to 0.16153. However, we can see from the figure that in history, the market value of Ethereum once accounted for 83% of the market value of Bitcoin. At that time, it was estimated that the Ethereum community shouted the slogan of Flippening for the first time, but unfortunately it failed. Although we are looking forward to a surpassing of the market value, before surpassing, we can also observe and compare some fundamental indicators of Bitcoin vs Ethereum: The proportion of active-zce addresses (Ethereum vs Bitcoin), the current proportion is about It is 70%, and it has not yet overtaken! The proportion of total transaction fees (Ethereum vs Bitcoin), since the second half of 2020, has basically completed a big overtake! So, is it possible for the market value of Ethereum to surpass Bitcoin Flippening? I think Flippening will happen sooner or later! Isn't prediction without time limit a hooligan? The author believes that it should be difficult to achieve surpassing in this cycle. Ideally, the market value can be surpassed in the next cycle. However, there are several key factors: For Ethereum, in order to achieve permanent transcendence, judging from the current plan, it is absolutely inseparable from the introduction of EIP1559 and the successful transition of PoS. For Bitcoin, after two or three halvings, the block rewards used to ensure network security are no longer directly proportional to the value of the entire network, and whether network security can be effectively guaranteed remains to be seen; The value storage property has been formed, then ETH may become a more appropriate value storage choice. After all, as we can see above, in terms of total transaction fees, Ethereum has far surpassed the Bitcoin network, and the related L2 payment scheme of the Bitcoin network has not yet had an actual large-scale application.


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