November 30, 2021

Ethereum Is Leading the Way

Introduction

Is Ethereum “saving the bull market”? We don’t need to get into that discussion, but either way, Ethereum’s outperformance today has been impressive.

EthereumJesus.eth ⟠ 🙌🏻🦇🔊 @EthereumJesus

ETH/BTC right now.

We witnessed more than once in the past that Ethereum has the ability to lead the markets and lift Bitcoin and the rest of the market with it. Also, ETH pumps often precede major altcoin seasons…

However, with altcoins already in the spotlight for weeks now, most alt/ETH charts are not looking too hot. And, of course, the risk of a continued stock market meltdown has not disappeared just yet, so be careful with the bets you place right now.

While the green in the market is certainly a pleasant way to start the week, there is no reason to become euphoric or careless now. Even after today’s price action, Bitcoin is still firmly in a mid-term downtrend. So, put on your war helmet and get ready for a roller coaster ride with different potential outcomes!

SpaceManBTC @SpacemanBTC

Could you imagine the timeline if we did something like this 💀👀

ETH 🔥🚀

• We have been beating the drum for days that Ethereum’s chart presented an excellent technical set-up – especially when compared to the rest of the market. We have seen repeatedly that once the crowd is leaning on one side (hot L1s), “ignored” assets – in this case, Ethereum – can start to shine. Especially the ETH/BTC pair is looking very strong right now!

eric.eth @econoar

I'm sure it's nothing.

• Coupled with the growing excitement for ETH scaling and particularly ZK-Rollups (+ the fact that most metaverse and gaming projects are in the Ethereum ecosystem), there were enough catalysts to catapult ETH higher.

Emily (Former TradFi CFA, CAIA, CA, MBA) APE 🦇🔊 @AutomataEmily

It has now evolved into 1) ZKR 2) Metaverse

Emily (Former TradFi CFA, CAIA, CA, MBA) APE 🦇🔊 @AutomataEmily

The market is kind of bifurcated right now There are two camps 1) OHM forks 2) GameFi, Metaverse plays I would say for 2) there's quite a wide spectrum ranging from guilds to virtual land plays to VR stuff. Been quite fascinating exploring these verticals lately

DCinvΞstor @iamDCinvestor

why are L2s bullish for ETH? simple: they dramatically increase the reserve demand for ETH NFTs are traded in ETH, Uniswap and other DEXes mostly rely on ETH pairs, L2s pay L1 for security in ETH and L2 rollups allow us to more than 100x the capacity of Ethereum

Andrew Kang @Rewkang

Roll-ups as a scaling solution are incredibly powerful While we've reached capacity limits for many L1s, the limits for roll-ups have barely been tested @loopringorg $LRC on top w/ highest recorded TPS @arbitrum with the highest theoretical max TPS

• Let's not forget whom we have to thank for the current Ethereum pump, Zhu Su 😉 (For those uninitiated: Three Arrows Capital CEO and crypto investing legend Zhu Su hit Ethereum's bottom to a tee when he announced to “abandon” Ethereum last week, causing quite an outcry...)

Zhu Su 🔺 @zhusu

Ok nice revenge bod eth, ngl

EthereumJesus.eth ⟠ 🙌🏻🦇🔊 @EthereumJesus

Someone check on @zhusu, because ETH is abandoning ETH/BTC. 🚀🌕

⭐️🩸Fiskantes (smell, smell) @Fiskantes

Bullish abandoning

• Of course, when ETH is outperforming Bitcoin in such a notable way, the Ethereum community is quick to come out and call for the “flippening” (meaning, Ethereum overtaking Bitcoin in market cap).

Wolf 🐺 @IamCryptoWolf

$ETH flips $BTC it’s written in the charts.

cobie @CryptoCobain

1 ETH = 1 BTC

DonAlt @CryptoDonAlt

Imagine the BTC maxi cope if ETH flips BTC And then imagine the ETH maxi cope when the entire market goes to shit and ETH tanks twice as hard as BTC does Would be kinda funny wouldn't it? A duck can dream.

• In my opinion, while the flippening is a possibility, Bitcoin and Ethereum fulfill utterly different use cases at this point in time – "store of value” vs. “programmable money.” However, once Ethereum successfully completes its transition to Proof-of-Stake, there is a realistic chance that Ethereum could go for Bitcoin’s “digital gold” position… So far, Ethereum has the burden of proof on its shoulders to achieve what Bitcoin has achieved: maximum trust.

ultra sound money 🦇🔊 @ultrasoundmoney

0.001% understand ultra sound money ultra early

• On another note, yesterday’s stepping down of Jack Dorsey as Twitter CEO seemed to “magically” accelerate Ethereum’s bullish move. And indeed, shortly after Dorsey’s resignation, Twitter added ETH to its tipping feature yesterday – “probably nothing,” as they say.

Molly @bigmagicdao

Twitter’s CEO , from the bitcoin maxi Jack to ethereum friendly Parag. Bullish for $eth?

Camila Campton ⚡️ @camilacampton

Well… That didn’t take long… 🥲

• In addition, Ethereum secured the support from another unexpected party 🍻😄

wolfofethereum.eth 🐬🆙️ @LUKACACIC

👀 @ensdomains #ENS $ENS 🚀 This is epic! beer.eth 🍻 👀

Inflation, Inflation, Inflation…

• I know most of us have heard about inflation in recent weeks... But the unfortunate reality is that inflation is not something to just brush off and ignore. No, inflation affects everyone, whether your salary and savings are no longer enough to cover the rising cost of living or because you benefit directly from asset inflation as an investor.

• If you know how inflation works and how it affects literally everything, you can take decisions that have the potential to transform your life! That’s why we’ll keep covering this critical topic for the time being.

• What “positive” effect could the new Covid-variant have for the markets? No matter how absurd it may sound, but bad news is often good news for the markets – especially in an “up-only” bubble phase. Although objectively bad for many people and companies, renewed Corona restrictions will likely cool inflation and could serve as an excuse for the Fed not to intervene until later next year. Thus, the stock (and crypto) market party can continue for the time being unless another negative catalyst comes up…

Joe Weisenthal @TheStalwart

Eurozone inflation soars above all expectations, to its highest level on record bloomberg.com/news/articles/…

Holger Zschaepitz @Schuldensuehner

Good Morning from #Germany where the financial repression intensifies. Real yields (10y Bunds-inflation) plunged to -5.52%, a fresh All-Time low after inflation jumped to 5.2% in Nov from 4.5% in Oct. Real yields now NEGATIVE for 67 consecutive months, another historical record.

More Positive Crypto Regulation News

• After the massive positive EU regulation news we covered a couple of days ago, we got some more good regulation news today:

Jerry Brito @jerrybrito

1/ Good news: Sec. Yellen says recent FATF guidance on cryptocurrency is consistent with FinCEN regulation, i.e. that it does not cover "hardware wallet manufacturers, providers of unhosted wallets, software developers, or miners" who don't take custody of funds.