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OⓂ️id 🎩
@omidxyz
What has happened to the crypto market? At least Ethereum was expected to perform much better in this cycle, especially with the significant growth of Layer 2s. But all the attention shifted to Bitcoin, and then to meme coins. Nothing is like it used to be. Is this really how it’s going to end? So disappointing? 🫠
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jon
@jonbray.eth
narrative still drives price, and as bullish as I am on ETH long-term it has been overvalued for the current landscape those banking on the growth of L2s driving up ETH price failed to consider that their growth (and lowered gas prices) reduced demand for ETH as a gas currency, and tech like smart wallets and paymasters brought it down even more unlike every other cycle, now you can onboard to the Ethereum ecosystem without having to own ETH in a lot of cases additionally Blobs reduced gas fees so much that ETH stopped being deflationary, which threw the "sound money narrative" out the window for the time being on a macro level, BTC dominance has suppressed most other coins, as it gets the lion's share of press when it comes to crypto
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jon
@jonbray.eth
I also don't think we're ever going to see "alt season" like we have in previous cycles, where like clockwork, BTC would pump, then ETH, then all the profits would flow into alts it was pretty much a guarantee that every token would at the very least retest it's previous ATH after BTC reached a new one, I don't think we'll see that happen anymore for many tokens that cycle worked great when there were a few thousand altcoins, but by some estimates there's currently 13.5 million + altcoins which means capital and attention are majorly diluted couple that diluted attention with the price suppression across the market and smart money is hesitant to go all-in on anything just yet even something like SOL flipping ETH re: attention economy shows that it's hard to predict what the market will gravitate to
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jon
@jonbray.eth
all that being said, it's not over it's hardly even started, it just looks a little different than we're used to from previous cycles
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OⓂ️id 🎩
@omidxyz
It was a very comprehensive and useful analysis. However, I should mention that transaction fees have no impact on pricing. Otherwise, Solana, which has significantly lower fees than L2s, wouldn't have easily reached new all-time highs. Thank you buddy 💛🙏 300 $degen
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