Why I treat Ethereum as an index fund + some new narratives in crypto
Hey, friends!
Getting more and more bullish for every day that is passing.
A good indicator is the amount of projects launching, how many airdrops that are announced and how fast the dips are getting bought up.
Today a new ponzi game just launched called GG. Gives me early friendtech-vibes, so I think it could be smart to join fast. It’s backed by Delphi Digital and lots of angels in the space.
Here’s an unlimited code you can use to enter the game and get the airdrop:
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Today’s newsletter is sponsored by the Kenshi community
Kenshi is a Swiss-based blockchain company playing on the DePIN narrative and offering services such as Custom Oracle Network, blockchain IoT SDK, Deep Indexing, GraphQL, and Reverse-API (webhooks) on Ethereum, Arbitrum, and 6 other EVM chains.
Unchained - the decentralized P2P network they’re working on which is a cross between a layer 1 and layer 0 used for data validation. Unchained nodes work to validate data together and are rewarded in $KNS tokens. The validated data can then be queried by consumers in exchange for $KNS tokens.
The utility of the $KNS token is used to pay for services and to validate the Unchained network. You can stake the token for rewards, and rewards are doubled if you hold a Katana NFT.
Fair launched token with a fully doxxed team. CEX listing in progress. $15M mcap, $17.8M FDV.
Here’s the CoinGecko stats: https://www.coingecko.com/en/coins/kenshi
Why I treat Ethereum as an index fund + some new narratives in crypto
I am starting to treat $ETH like an index fund. Call me crazy, but that’s how bullish I am for the next 2 years. “We’re going to Valhalla, brothers and sisters” Haha. That quote is taken from a viral YouTube clip from a very bullish influencer.
So the reason I am thinking of $ETH as an index fund is because of the limited downside I see for the asset for the next 2 years. It’s not going to outperform like crazy, but a 3-4x from here ($6-9k) seems reasonable. The institutions are coming and buying a deflationary asset that produces dividends daily is definitely something they’re interested in.
So what I am doing is that I am basically DCA’ing into ETH. Buying whenever I have some spare change.
And with $ETH I am doing several things.
I am using $ETH and stETH as collateral for trading on Bybit. For ETH you can utilize 95% on your ETH which means that if you have $10k in $ETH on Bybit, you can trade on derivatives/perps with $9,500. You can do the same with stETH, which gives you the additional benefit of 3,5% yield per year
Liquid restaking of ETH on EigenLayer. Deposit stETH, wbETH, rETH, swETH etc. and earn ETH from staking + restaking points. And as a bonus you might qualify for several airdrops. Last week I got an Alt Layer airdrop simply because I had restaking points on EigenLayer.
Then you have restaking in your wallet. With protocols like Swell, Renzo, Kelp and Ether.fi. An example: with Swell you can buy the liquid rswETH (instead of waiting on the EigenLayer caps). The benefit is that you can hold the token in your Rabby/Metamask wallet, while on EigenLayer you have to lock the token in their dApp (and it’s also a 7-day withdrawal queue. You get EigenLayer restaking points + staking rewards + Pearl points (Swell will give out an airdrop)
Further you can use your rswETH, eETH or rsETH in a Pendle pool and earn 30% APY
If you don’t want to play the restaking narrative you can always deposit wstETH (that earns 3,5% APY) to AAVE and borrow up to 85% against it. This money you can use to buy more $ETH and repeat this loop, or you can withdraw and use the money in real life. The staking APY should cover the borrowing cost, and hopefully, ETH will increase over time so that the issue with the downpayment will be negligible.
Solo staking, LP’ing in various yield farms ++...the opportunities are endless
Some other thoughts on my mind
New ponzi game that gives airdrop
A new game on $SOL: https://x.com/ggdotzip/status/1751987369555726520?s=20
Usually it is smart to be early to these games. GG is merging crypto, gaming, and augmented reality to create the first ARC (AR Crypto) gaming ecosystem on Solana. Huge speculations on a big airdrop because it is backed by Delphi Digital and lots of angels in the crypto space.
If you want to play it and get a free airdrop, you can check out the game here:
Restaking on Solana live
Lots of talk about ETH restaking, but what about restaking on SOL? Good news, Picasso Network made it live today on Mantis: https://x.com/Picasso_Network/status/1751811950021841011?s=20
3. Crypto x AI narrative
Thread: https://x.com/0x___Brick/status/1750546089898618947?s=20
And just to end this, some thoughts from Santiago:
“Stop waiting for big companies and traditional investors to tell you crypto is real and valuable.
Think most of us are here because we can’t imagine a world that doesn’t adopt crypto eventually - in a similar manner as the Internet delivered so much value that it was impossible to stop.
Wait isn’t crypto just a 24/7/365 online casino?
Look deeper. The journey of discovering crypto is less about awakening to a coin and more a process of introspection.
One where you’ll question everything you’ve taken for granted and told to believe in. I believe the biggest value in this journey lies in developing a more critical mind.
At the end of this process (if there ever is one) you may not believe in Bitcoin or Ethereum or Solana or whatever meme coin.
But you will certainly awaken to question many more things and appreciate others.
You’ll end up questioning basic things like what gives value to fiat? What is money? If you’ve (mis)placed trust?
How it is used/abused by institutions/companies? What can you do about it? And ultimately, what is freedom and how much of it do you have?
After questioning so much you then appreciate the value of crypto systems where rules are clear and their interpretation and implementation is predictable and arbitrary.
Crypto is a system that operates without trusting anyone and where the rules are clearly understood and unable to be easily bent or corrupted. It’s not a utopia. When you look at how Bitcoin and decentralized finance are working today you appreciate it can actually work and scale.
You don’t have to wait for Larry Fink to reaffirm to you that crypto is the solution to a lot of the limitations of current systems that breach trust, corrupt and capture value unequally and inefficiently. Crypto will prevail because it is open, transparent and has clearly defined rules.
And when the rules are clear, well known and their enforcement is done by impartial smart contracts, then it increases the willingness of players to participate and, crucially, changes their incentive to behave positively. In contrast, current systems are inefficient because they have a circular problem - enforcing rules and trusting those who enforce not to abuse. Who watches the watch-keeper? Who regulates the regulator?
Once you truly discover crypto you rarely look back. You focus on bringing forward the day it becomes the operating standard of systems - from finance to commerce to government because it comes to solves a lot of the challenges and limitations of placing too much trust on agents that can be corrupted.
And so, crypto will live and thrive. It’s simply too powerful and profound that it’s only a matter of time before the innovators who have been tirelessly working in the space deliver excellent and novel products that need no convincing for billions of users to adopt.
We are entering that stage of this revolution where crypto is used beyond pure speculative use cases and impacts the lives of billions whether they realize it or not.
And so while the ETF is perhaps the most impactful event to legitimize this asset class, it’s the crypto-powered applications that will elevate this industry the most”.
That’s it for today!
And please let this pump be long-lasting :)
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