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welcome to money is freedom

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a podcast

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exploring how finance and freedom connect in our lives

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created from thoughtful research

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and narrated by Notebook L

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m a I this series brings you clear

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meaningful insights into finance and beyond

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welcome to Episode 40

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where we unpack Ethereum's 2025 crisis

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from price drops and leadership shifts

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to booming L Twos and Solana's rise

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despite the noise

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Ethereum's fundamentals are stronger than ever

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is this the setup for its biggest comeback yet

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let's break it all down

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okay so

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you might have caught some of the recent chatter

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around Ethereum and let's be honest

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some of it hasn't sounded great

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yeah there's definitely

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been a bit of negativity floating around

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exactly so before we just run with those headlines

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we wanted to do a proper

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deep dive into what's really going on

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good idea we've gathered a bunch of articles

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some analysis all from this month April 2025

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basically to try and cut through some of that noise

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makes sense get to the core of it

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yeah our mission here is really to

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get a solid grasp on Ethereum's current situation

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figure out the most important insights

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and tackle those big questions for you

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like is Ethereum actually in trouble

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uh what are the real challenges it's facing

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and you know

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maybe crucially despite all this stuff

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why might it still be a major force down the line right

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because the daily price swings

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the um

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the social media storms they can create a lot of F U

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d fear

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uncertainty and doubt it happens for sure

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but to really understand things

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you benefit most from looking at the fundamentals

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you know the tech underneath

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and the actual context behind these headlines okay

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so yeah let's tackle this perception of trouble head on

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what are the main reasons

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these sources are giving for the sort of

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negative vibe around Ethereum lately

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all right let's unpack that

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a big one that keeps coming up is well

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the competition specifically Solana

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ah yes

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Solana speed right

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their transaction speeds are just really fast

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you're talking less than a second for confirmations

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compared to Ethereum's what

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12 seconds on average exactly around 12 seconds

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and that speed difference

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yeah it's definitely catching people's attention

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it impacts how apps feel how responsive they are

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definitely a factor for user experience

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and then there's the uh

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the classic issue

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high gas fees on the main Ethereum network

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that still seems to be a hurdle for a lot of people

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it hasn't gone away completely

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no and that kind of feeds into this broader feeling

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that using Ethereum can be well

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a bit complicated and maybe even sluggish sometimes

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and it's interesting how those technical points

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connect with the um

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the human side of things to the community

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how so well

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the sources also mention reports of

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let's say disagreements

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or friction within the Ethereum community itself

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ah okay

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internal stuff yeah

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now some debate is totally normal

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even healthy in these big decentralized projects right

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huh but it's something else

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we need to kind of

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factor in when looking at the whole picture right

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and it feels like these internal tensions

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maybe combined with the tech worries

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could be making some developers and uh

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bigger investors a bit nervous

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that seems plausible the source

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actually mentioned some pretty significant withdrawals

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something like $400 million

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pulled out in this one month

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that definitely makes you pause

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wow $400 million

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yeah that's not insignificant

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it does raise questions about confidence levels

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at least in the short term

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and look we can't ignore the price

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ETH has dropped quite a bit from its peak

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didn't it down to around what 15

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twenty dollars this month

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yeah roughly 15

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1520 based on these reports

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down from over $4,000 well

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at the same time

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Solana's price apparently hit a new all time high

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like $295

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yeah it's kind of tempting

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to just draw a straight line between all those points

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isn't it yeah

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it is tempting absolutely

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market sentiment price action

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they often reflect those immediate trends and feelings

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yeah but

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you know

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for the listener trying to get the long term picture

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you really need to understand the underlying strengths

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the innovation that's still happening

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it's not just about the market mood today

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okay so fundamentals versus feeling exactly

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now speaking of fundamentals

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a huge part of Ethereum's

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strategy to deal with its own limitations

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like speed and cost is these layer 2 scaling solutions

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right the L Twos

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can you maybe explain a bit about how those work

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and what's the sort of potential paradox or catch 22

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that our sources are bringing up about them

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sure so the way I think about it

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picture Ethereum's main network

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layer 1 as like a really busy city center

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okay it gets congested

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things can get expensive like high gas fees

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layer twos are like these efficient

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suburbs that have popped up around the city

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ah nice analogy

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they handle a ton of the day to day activity

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the transactions much faster and way cheaper

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but they still rely on the main city

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layer 1 for their ultimate security and like

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final settlement gotcha

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like arbiterum optimism

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those kinds of networks exactly those yeah

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they're big examples but here's where it gets

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well tricky maybe

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or just really interesting

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uh huh while these L Twos are fantastic for users

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faster cheaper

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uh huh their very success could theoretically

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mean less activity happening directly on layer 1

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right

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because people are doing their stuff on the L2 instead

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yeah and if there's less activity on L1

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that potentially means less revenue

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being generated there from fees

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and that revenue is what pays the validators

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who secure the whole network precisely

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so it's like are the suburbs becoming so popular

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they might starve the city center

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uh huh of the resources it needs to maintain itself

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uh huh it's a bit of a double edge sword

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that's a great way to put it

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if most of the economic action

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moves to these super efficient LTW

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how does the core Ethereum network

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keep paying for its security

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yeah that raises a really critical question

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for anyone holding ETH or building on Ethereum

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where does the value actually end up

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in this whole ecosystem

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does it still flow back to the ETH token

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now our sources do say the Ethereum

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dev community is very aware of this

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and they're actively

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looking at ways to make sure things stay balanced

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what are some of the ideas they're kicking around

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okay so to tackle this this potential value drain

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they're exploring some pretty smart strategies

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it seems like what

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one idea is basically charging rent or more formally

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data availability fees

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the L Twos would pay Ethereum layer 1

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just for posting their transaction data there

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for using it as an anchor okay

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so the suburbs

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pay a fee to connect to the city's infrastructure

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kind of like that yeah

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like paying a toll for using the main highway

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another approach is making LTWOs

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pay a slice of their transaction fees

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back to the Ethereum validators on layer 1 ah

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creating a more direct economic feedback loop

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exactly

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and then there's the one that gets a lot of discussion

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the idea of having LTWOs actually burn ETH tokens

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as part of their operation

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burning ETH how does that help

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well

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the thinking is if you reduce the total supply of ETH

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by burning it the ETH that's left becomes scarcer

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and if demand stays the same or grows

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that scarcity could push up the value of ETH itself

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right basic supply and demand

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so that could potentially offset any drop in layer 1

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fee revenue that seems to be the hope

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yeah okay

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so it's clear that

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while L2 solves really immediate problems

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for users low fees

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speed

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the long term health of Ethereum's base layer

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really depends on getting these economic incentives

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right it's a critical balancing act

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definitely feels like it now

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shifting gears just a little bit

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you mentioned the speed difference with Solana earlier

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yeah the sub second versus 12 seconds right

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the sources talk about a specific proposal

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trying to chip away at Ethereum's block time

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ah yes

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e I p 7

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7 8 1

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that's the one the goal there is

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apparently

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to get Ethereum's average block time down to

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maybe eight seconds from 12 to 8

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that's a decent improvement

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yeah it's noticeable

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it could make apps feel snappier

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help Ethereum compete better on that front

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yeah it's about optimizing

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how blocks get passed around the network

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basically faster block propagation

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right but um

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like with many things in this space

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there's often a trade off

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isn't there precisely

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and the sources flag

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a pretty big concern related to decentralization here

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yeah what are the potential downsides

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of speeding up Ethereum's block time

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that much well

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the main worry is about the hardware

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if you need to process blocks much faster

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it could mean you need more powerful

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maybe more expensive computers to run an Ethereum node

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ah raising the barrier to entry for node operator

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exactly if running a node becomes too costly

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or needs really specialized gear

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then fewer people fewer organizations

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might be able to participate

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in actually securing the network

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and fewer participants means less decentralization

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which is you know

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a core principle for Ethereum

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for the whole blockchain idea really right

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so it's about finding that balance

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that sweet spot between getting better performance

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and making sure the network stays widely distributed

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and uh permissionless

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it's that classic engineering problem

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isn't it you optimize for one thing

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and it often affects something else

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and this kind of leads us into that discussion

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around the Ethereum community itself

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and that internal friction we touched on earlier

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what were some of the specific cultural challenges

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the sources highlighted yeah

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this is where the sort of people part comes in

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and it sounds like there are some maybe worrying signs

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one thing mentioned is maximalism

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ethereum maximalism yeah

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like a really strong sometimes maybe even aggressive

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uh huh stance where any criticism of Ethereum

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even if it's meant constructively

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gets shut down really hard

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uh huh not very welcoming to feedback then

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apparently not always they mentioned a developer

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Max Resnick who left after raising some concerns

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and facing backlash

282
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that kind of thing

283
00:09:39,633 --> 00:09:41,800
really highlights the potential problem

284
00:09:41,800 --> 00:09:43,766
it could make for a pretty stifling atmosphere

285
00:09:43,766 --> 00:09:45,200
if you want open discussion

286
00:09:45,366 --> 00:09:47,166
yeah that kind of environment could definitely

287
00:09:47,166 --> 00:09:48,300
slow down innovation

288
00:09:48,300 --> 00:09:50,266
or scare off people with good ideas

289
00:09:50,266 --> 00:09:51,866
but maybe different viewpoints

290
00:09:52,200 --> 00:09:53,366
what else did the sources say

291
00:09:53,366 --> 00:09:54,766
about the community's health

292
00:09:55,166 --> 00:09:56,900
another point was about the influence of the loudest

293
00:09:56,900 --> 00:10:00,866
voices particularly on platforms like Twitter or X

294
00:10:00,866 --> 00:10:02,033
as it's called now ah

295
00:10:02,033 --> 00:10:03,766
the Twitter effect right

296
00:10:04,500 --> 00:10:06,800
while social media can be useful

297
00:10:07,366 --> 00:10:09,466
it seems like sometimes these really informal

298
00:10:09,466 --> 00:10:10,866
loud conversations

299
00:10:11,233 --> 00:10:14,233
are maybe drowning out the more formal channels

300
00:10:14,233 --> 00:10:15,966
like the etherium magicians form

301
00:10:16,100 --> 00:10:16,866
where the deeper

302
00:10:16,866 --> 00:10:18,600
technical debates are supposed to happen

303
00:10:18,600 --> 00:10:20,766
so the noise overshadows the substance

304
00:10:21,433 --> 00:10:24,633
possibly it can make it harder for regular contributors

305
00:10:24,633 --> 00:10:26,966
people who aren't big names on social media

306
00:10:26,966 --> 00:10:28,900
to actually get their ideas heard

307
00:10:28,900 --> 00:10:31,166
or seriously considered I can see that

308
00:10:31,166 --> 00:10:32,633
and there were even some reports

309
00:10:32,633 --> 00:10:35,900
kind of concerningly of developers feeling like

310
00:10:35,900 --> 00:10:38,766
unsafe or hesitant to even share new ideas

311
00:10:38,766 --> 00:10:40,600
because they're afraid of getting attacked online

312
00:10:40,600 --> 00:10:42,566
or facing negativity wow

313
00:10:42,866 --> 00:10:46,400
that's not good that really goes against the whole open

314
00:10:46,400 --> 00:10:47,433
collaborative vibe

315
00:10:47,433 --> 00:10:49,366
that usually drives these kinds of projects

316
00:10:49,366 --> 00:10:50,833
totally and you have to think

317
00:10:50,833 --> 00:10:52,233
if that kind of culture takes hold

318
00:10:52,233 --> 00:10:54,600
it could really impact how fast things get developed

319
00:10:54,600 --> 00:10:56,566
how well the platform adapts

320
00:10:56,600 --> 00:10:57,800
it's a serious challenge

321
00:10:57,800 --> 00:11:00,433
for any big open source community really

322
00:11:00,433 --> 00:11:02,066
you need that open communication

323
00:11:02,066 --> 00:11:05,200
you need a culture that actually values different views

324
00:11:05,366 --> 00:11:07,400
and yes constructive criticism

325
00:11:07,400 --> 00:11:08,633
the sources do mention

326
00:11:08,633 --> 00:11:11,466
some efforts are underway to try and fix this though

327
00:11:11,466 --> 00:11:13,433
what are they trying yeah

328
00:11:13,433 --> 00:11:14,566
it sounds like there's an awareness

329
00:11:14,566 --> 00:11:15,766
that these cultural issues

330
00:11:15,766 --> 00:11:17,566
need addressing um

331
00:11:17,566 --> 00:11:19,500
things like community newsletters were mentioned

332
00:11:19,500 --> 00:11:21,566
trying to create more inclusive online spaces

333
00:11:21,566 --> 00:11:22,466
or forums

334
00:11:23,000 --> 00:11:24,666
ways to encourage better dialogue

335
00:11:24,666 --> 00:11:26,700
make sure more voices get heard and respected

336
00:11:26,700 --> 00:11:27,000
okay

337
00:11:27,000 --> 00:11:30,233
so positive steps but it probably needs ongoing effort

338
00:11:30,233 --> 00:11:31,266
seems like it yeah

339
00:11:31,266 --> 00:11:33,500
a real commitment from the community itself

340
00:11:33,966 --> 00:11:36,366
now speaking of direction and leadership

341
00:11:36,500 --> 00:11:38,633
the sources also talked about some recent changes

342
00:11:38,633 --> 00:11:40,300
at the top of the Ethereum Foundation

343
00:11:40,300 --> 00:11:42,000
what's going on there right

344
00:11:42,000 --> 00:11:44,600
the leadership shuffle at the Ethereum Foundation

345
00:11:44,600 --> 00:11:46,600
back in March 2025

346
00:11:46,600 --> 00:11:48,800
it does seem to signal a potential shift

347
00:11:48,800 --> 00:11:50,800
in how Ethereum's development

348
00:11:50,800 --> 00:11:53,400
and maybe it's public face or manage

349
00:11:53,400 --> 00:11:54,033
how so well

350
00:11:54,033 --> 00:11:56,500
I am Miyagiuchi moving into the president role

351
00:11:56,500 --> 00:11:59,500
focusing on global outreach and longer term strategy

352
00:11:59,500 --> 00:12:02,500
that suggests maybe a more external facing push

353
00:12:02,500 --> 00:12:04,666
and then bringing in Shao Wei

354
00:12:04,666 --> 00:12:07,433
Wang and Tommaso to handle the day to day

355
00:12:07,433 --> 00:12:09,366
direction and engineering decisions

356
00:12:09,900 --> 00:12:11,366
these are people with really deep

357
00:12:11,366 --> 00:12:13,200
technical roots in the ecosystem

358
00:12:13,200 --> 00:12:15,566
who are they Wang comes from a research background

359
00:12:15,566 --> 00:12:19,100
building core systems Staffack founded Nethermind

360
00:12:19,100 --> 00:12:21,033
which is a major client team

361
00:12:21,033 --> 00:12:22,600
crucial infrastructure

362
00:12:22,633 --> 00:12:26,200
so they bring serious operational and technical chops

363
00:12:26,200 --> 00:12:28,233
got it experience from the trenches

364
00:12:28,233 --> 00:12:30,066
exactly and on top of that

365
00:12:30,066 --> 00:12:31,433
you see new initiatives

366
00:12:31,433 --> 00:12:33,100
popping up under this new leadership

367
00:12:33,100 --> 00:12:34,800
like something called Etherealize

368
00:12:34,800 --> 00:12:35,866
Etherealize what's

369
00:12:35,866 --> 00:12:36,900
that it seems

370
00:12:36,900 --> 00:12:39,566
aimed at bringing in more institutional players

371
00:12:39,566 --> 00:12:42,066
but with a focus on making sure they're aligned

372
00:12:42,066 --> 00:12:44,166
with Ethereal's core values

373
00:12:44,633 --> 00:12:46,033
it suggests they're proactively

374
00:12:46,033 --> 00:12:48,266
trying to engage with a wider world

375
00:12:48,266 --> 00:12:49,066
hmm interesting

376
00:12:49,066 --> 00:12:51,766
so adapting leadership as the project evolves

377
00:12:51,966 --> 00:12:53,666
yeah and that willingness to adapt

378
00:12:53,666 --> 00:12:55,566
could be seen as a pretty positive sign

379
00:12:55,566 --> 00:12:57,766
for Ethereum's ability to navigate the future

380
00:12:57,766 --> 00:12:58,966
okay that makes sense

381
00:12:59,100 --> 00:13:00,566
so we looked at the headwinds

382
00:13:00,566 --> 00:13:02,600
the challenges the community stuff

383
00:13:03,166 --> 00:13:04,700
but then the sources kind of pivot

384
00:13:04,700 --> 00:13:05,500
don't they

385
00:13:05,666 --> 00:13:07,566
they start talking about what they call the bullish

386
00:13:07,566 --> 00:13:09,033
fundamentals they do

387
00:13:09,033 --> 00:13:10,633
it's almost like saying okay yeah

388
00:13:10,633 --> 00:13:12,566
that's the negative narrative you might be hearing

389
00:13:12,566 --> 00:13:14,666
but let's actually lift the hood and look at the engine

390
00:13:14,666 --> 00:13:16,833
exactly what's really happening on the network

391
00:13:16,833 --> 00:13:19,300
so what are some of these key underlying strengths

392
00:13:19,300 --> 00:13:21,300
that maybe the market isn't

393
00:13:21,700 --> 00:13:23,566
fully appreciating right now right

394
00:13:23,566 --> 00:13:25,600
this is where the story gets quite different

395
00:13:25,600 --> 00:13:26,966
despite the price action

396
00:13:26,966 --> 00:13:28,966
despite some of that negative talk

397
00:13:29,000 --> 00:13:30,866
the actual on chain metrics

398
00:13:31,033 --> 00:13:33,633
they paint a pretty compelling picture

399
00:13:33,633 --> 00:13:34,666
okay like what

400
00:13:34,700 --> 00:13:37,966
first off just the sheer amount of activity

401
00:13:37,966 --> 00:13:39,166
transaction volume

402
00:13:39,166 --> 00:13:41,900
it's actually surging across both layer 1

403
00:13:41,900 --> 00:13:44,000
and significantly the layer 2

404
00:13:44,000 --> 00:13:46,166
so people are actually using it a lot

405
00:13:46,166 --> 00:13:47,400
a lot the fact that L

406
00:13:47,400 --> 00:13:48,200
Twos combined

407
00:13:48,200 --> 00:13:50,833
are now apparently processing more transactions

408
00:13:50,833 --> 00:13:52,300
than Ethereum's main layer

409
00:13:52,300 --> 00:13:53,533
that's huge

410
00:13:53,566 --> 00:13:55,766
it shows those scaling solutions are working

411
00:13:55,766 --> 00:13:57,233
and being adopted wow

412
00:13:57,233 --> 00:14:00,333
more than L1 itself that's what the sources indicate

413
00:14:00,400 --> 00:14:01,966
build millions of dollars in value

414
00:14:01,966 --> 00:14:04,266
moving around every week and it's not just one thing

415
00:14:04,266 --> 00:14:05,866
it's defi it's NFTs

416
00:14:05,866 --> 00:14:07,933
it's gaming all sorts of applications

417
00:14:08,166 --> 00:14:09,633
it points to a really active

418
00:14:09,633 --> 00:14:11,100
vibrant ecosystem okay

419
00:14:11,100 --> 00:14:12,300
that's a strong counterpoint

420
00:14:12,300 --> 00:14:14,066
what else and there's stable coins

421
00:14:14,066 --> 00:14:16,566
ethereum is still absolutely dominant there right

422
00:14:16,566 --> 00:14:18,000
things like USDC tether

423
00:14:18,000 --> 00:14:19,400
exactly USDC

424
00:14:19,400 --> 00:14:20,833
USDT d a I

425
00:14:20,833 --> 00:14:24,400
the big ones Over $70 billion worth of stable coins

426
00:14:24,400 --> 00:14:27,233
are apparently built on or anchored to Ethereum

427
00:14:27,233 --> 00:14:29,500
70 billion that's massive

428
00:14:29,500 --> 00:14:32,100
it is and those stablecoin protocols

429
00:14:32,100 --> 00:14:35,000
rely on Ethereum's security and reliability

430
00:14:35,000 --> 00:14:36,266
as their foundation

431
00:14:36,266 --> 00:14:39,433
that's a huge vote of confidence in the core technology

432
00:14:39,433 --> 00:14:40,833
wouldn't you say yeah absolutely

433
00:14:40,833 --> 00:14:42,633
you wouldn't park $70 billion somewhere

434
00:14:42,633 --> 00:14:44,300
you didn't trust precisely

435
00:14:44,300 --> 00:14:46,033
and it's not just about the apps

436
00:14:46,033 --> 00:14:47,000
or the money moving around

437
00:14:47,000 --> 00:14:49,000
it's also about the user base itself right

438
00:14:49,000 --> 00:14:52,066
are more people actually coming into Ethereum

439
00:14:52,066 --> 00:14:53,566
what did the sources say there

440
00:14:53,566 --> 00:14:54,800
yeah they touched on that too

441
00:14:54,800 --> 00:14:57,200
said that even with the market UPS and downs

442
00:14:57,366 --> 00:14:59,700
the number of unique Ethereum addresses

443
00:14:59,700 --> 00:15:02,266
just keeps climbing it's over 250 million now

444
00:15:02,266 --> 00:15:04,466
250 million unique addresses

445
00:15:04,466 --> 00:15:06,166
and even when the price is down

446
00:15:06,166 --> 00:15:08,666
new addresses are still being created every day

447
00:15:08,666 --> 00:15:09,433
so it suggests

448
00:15:09,433 --> 00:15:11,900
a pretty steady flow of new users coming in

449
00:15:11,900 --> 00:15:13,466
maybe if his wallets are getting easier

450
00:15:13,466 --> 00:15:15,400
maybe new apps are drawing them in right

451
00:15:15,400 --> 00:15:17,366
continued growth even in a bear market

452
00:15:17,433 --> 00:15:19,333
that's often seen as a healthy sign

453
00:15:19,666 --> 00:15:21,000
now what about those fees

454
00:15:21,000 --> 00:15:23,066
we talked about the high gas costs

455
00:15:23,066 --> 00:15:24,200
that were such a barrier

456
00:15:24,200 --> 00:15:25,966
has anything actually improved there

457
00:15:25,966 --> 00:15:28,400
yes definitely significant progress

458
00:15:28,400 --> 00:15:29,533
according to these reports

459
00:15:29,633 --> 00:15:32,833
after the merge the big switch to proof of stake

460
00:15:32,833 --> 00:15:34,866
and also other upgrades like uh

461
00:15:35,066 --> 00:15:37,200
Pro Dunk Sharding Pro Dunk Sharding

462
00:15:37,200 --> 00:15:39,700
right aimed at making L2 data cheaper

463
00:15:39,700 --> 00:15:41,833
exactly the average gas fees

464
00:15:41,833 --> 00:15:43,766
on the main network have apparently come down

465
00:15:43,766 --> 00:15:45,566
quite a bit but maybe more importantly

466
00:15:45,566 --> 00:15:46,600
the layer twos

467
00:15:46,866 --> 00:15:49,200
they're now offering near zero transaction costs

468
00:15:49,200 --> 00:15:51,000
for most typical things people do

469
00:15:51,000 --> 00:15:54,066
near zero on L Twos that's a game changer for usability

470
00:15:54,066 --> 00:15:56,200
it really is it tackles one of the biggest

471
00:15:56,200 --> 00:15:57,433
longest running complaints

472
00:15:57,433 --> 00:15:58,400
and makes Ethereum

473
00:15:58,400 --> 00:16:00,100
way more practical for everyday stuff

474
00:16:00,100 --> 00:16:01,400
for a huge number of users

475
00:16:01,400 --> 00:16:02,100
okay good

476
00:16:02,100 --> 00:16:04,666
and final let's talk about the ETH token itself

477
00:16:04,666 --> 00:16:06,266
the supply dynamics

478
00:16:06,333 --> 00:16:08,833
what's the effect of moving to proof of stake in that

479
00:16:08,833 --> 00:16:10,100
EIP one find 5

480
00:16:10,100 --> 00:16:11,766
9 fee burning thing right

481
00:16:11,766 --> 00:16:12,633
this is actually a really

482
00:16:12,633 --> 00:16:13,866
interesting piece of the puzzle

483
00:16:13,866 --> 00:16:16,866
so the move to proof of stake in 2022

484
00:16:16,866 --> 00:16:18,300
that wasn't just about energy savings

485
00:16:18,300 --> 00:16:19,566
although the energy saving is huge

486
00:16:19,566 --> 00:16:21,766
like over 99.95% less energy

487
00:16:21,766 --> 00:16:22,833
massive reduction yeah

488
00:16:22,833 --> 00:16:25,033
but it also drastically cut down

489
00:16:25,033 --> 00:16:26,766
how much new ETH gets created

490
00:16:26,766 --> 00:16:28,466
less inflation much less

491
00:16:28,466 --> 00:16:30,166
and then you add EIP 1 5

492
00:16:30,166 --> 00:16:31,733
5 9 on top of that

493
00:16:31,733 --> 00:16:33,600
which burns a part of the transaction fee

494
00:16:33,600 --> 00:16:34,700
with every block

495
00:16:34,700 --> 00:16:37,300
taking ETH out of circulation permanently

496
00:16:37,300 --> 00:16:38,400
exactly yeah

497
00:16:38,400 --> 00:16:41,266
especially when the network is busy and fees are higher

498
00:16:41,266 --> 00:16:42,733
more ETH gets burned

499
00:16:43,033 --> 00:16:45,366
the result is that the total supply of ETH

500
00:16:45,366 --> 00:16:47,866
is actually starting to trend deflationary

501
00:16:48,033 --> 00:16:50,000
meaning the total amount of ETH in existence

502
00:16:50,000 --> 00:16:51,633
can actually go down over time

503
00:16:51,633 --> 00:16:53,033
yes that's the trend

504
00:16:53,033 --> 00:16:55,866
this growing scarcity if demand keeps up

505
00:16:55,866 --> 00:16:56,866
could have really big

506
00:16:56,866 --> 00:16:59,266
long term implications for ETH's value

507
00:16:59,266 --> 00:17:00,066
absolutely

508
00:17:00,366 --> 00:17:03,266
that potential for ETH to become a deflationary asset

509
00:17:03,266 --> 00:17:05,833
is a powerful narrative assuming of course

510
00:17:05,833 --> 00:17:08,600
the network stays useful and in demand right

511
00:17:08,633 --> 00:17:10,800
so when you put all those fundamentals together

512
00:17:10,866 --> 00:17:14,766
the rising transaction volume across L1 and L2

513
00:17:14,766 --> 00:17:17,700
the stablecoin dominance the growing user base

514
00:17:17,700 --> 00:17:20,500
the much lower fees now especially on LTWO'S

515
00:17:20,600 --> 00:17:22,733
and this deflationary supply pressure

516
00:17:23,266 --> 00:17:24,900
it paints a very different picture

517
00:17:24,900 --> 00:17:26,633
than just looking at the recent price charts

518
00:17:26,633 --> 00:17:28,000
doesn't it it really does

519
00:17:28,000 --> 00:17:30,433
it highlights a network that's actually hit some major

520
00:17:30,433 --> 00:17:32,900
technical milestones scalability

521
00:17:32,900 --> 00:17:35,500
sustainability with proof of stake security

522
00:17:35,500 --> 00:17:36,900
even if the current market

523
00:17:36,900 --> 00:17:38,266
story hasn't quite caught up yet

524
00:17:38,266 --> 00:17:40,200
hmm which brings us to the big question

525
00:17:40,200 --> 00:17:42,566
I suppose Ethereum's resilience

526
00:17:42,566 --> 00:17:45,400
its future outlook based on everything we've looked at

527
00:17:45,400 --> 00:17:47,233
what gives Ethereum this ability to kind of

528
00:17:47,233 --> 00:17:48,700
weather these storms well

529
00:17:48,700 --> 00:17:51,800
the source is really stress Ethereum's history here

530
00:17:51,800 --> 00:17:53,800
it's been through rough patches before

531
00:17:53,800 --> 00:17:55,066
face big challenges

532
00:17:55,066 --> 00:17:57,666
and has a track record of navigating them and evolving

533
00:17:57,666 --> 00:17:59,700
it's not static not at all

534
00:17:59,700 --> 00:18:02,300
it's constantly being worked on upgraded

535
00:18:02,366 --> 00:18:03,400
refined

536
00:18:03,433 --> 00:18:06,700
by this huge decentralized community of developers

537
00:18:07,200 --> 00:18:09,366
but it's more than just code right

538
00:18:09,366 --> 00:18:13,600
the sources frame Ethereum as also being this um

539
00:18:13,866 --> 00:18:15,633
strong community a shared culture

540
00:18:15,633 --> 00:18:17,466
almost a collective belief

541
00:18:17,600 --> 00:18:20,033
in this idea of a decentralized internet

542
00:18:20,033 --> 00:18:21,266
that social layer

543
00:18:21,266 --> 00:18:23,600
the community provides a lot of strength yeah

544
00:18:23,600 --> 00:18:24,600
that strong foundation

545
00:18:24,600 --> 00:18:26,166
seems to give it a lot of resilience

546
00:18:26,166 --> 00:18:27,700
when things get tough okay

547
00:18:27,800 --> 00:18:30,233
and while those fundamentals seem solid

548
00:18:30,233 --> 00:18:31,900
and the history shows resilience

549
00:18:31,900 --> 00:18:33,666
the sources also say okay

550
00:18:33,666 --> 00:18:36,600
but here's where Ethereum still needs to focus

551
00:18:36,600 --> 00:18:37,933
where it needs to keep pushing

552
00:18:38,366 --> 00:18:40,466
what are those key areas absolutely

553
00:18:40,466 --> 00:18:41,466
it's not like the work is done

554
00:18:41,466 --> 00:18:43,666
there's a clear need to keep making the base layer

555
00:18:43,666 --> 00:18:45,833
layer 1 even faster and cheaper

556
00:18:45,833 --> 00:18:46,833
things like charting

557
00:18:46,833 --> 00:18:48,466
that's still crucial for the long run

558
00:18:48,466 --> 00:18:50,033
continued core development for sure

559
00:18:50,033 --> 00:18:51,766
and then there's the community aspect again

560
00:18:51,766 --> 00:18:54,300
really fostering a more positive inclusive environment

561
00:18:54,300 --> 00:18:55,966
yeah tackling that toxicity issue

562
00:18:55,966 --> 00:18:58,900
making sure diverse voices can actually contribute

563
00:18:59,000 --> 00:19:01,300
that's essential health of the community is key

564
00:19:01,300 --> 00:19:02,100
definitely

565
00:19:02,100 --> 00:19:05,000
and just making wallets and apps easier to use

566
00:19:05,000 --> 00:19:07,233
that's always ongoing trying to get broader adoption

567
00:19:07,233 --> 00:19:09,466
user experience always important

568
00:19:09,500 --> 00:19:12,600
and also just getting better at communicating

569
00:19:12,600 --> 00:19:14,400
what makes Ethereum valuable yeah

570
00:19:14,400 --> 00:19:16,400
you know to developers to users

571
00:19:16,400 --> 00:19:17,600
especially when there are all these shiny

572
00:19:17,600 --> 00:19:18,800
new alternatives popping up

573
00:19:18,800 --> 00:19:20,900
telling its story effectively yeah

574
00:19:21,300 --> 00:19:24,866
and finally circling back to that L2 economic issue

575
00:19:24,866 --> 00:19:27,600
making sure those economic ties between the L

576
00:19:27,600 --> 00:19:30,200
Twos and layer 1 are strong

577
00:19:30,266 --> 00:19:32,800
so that value does continue to flow back to ETH

578
00:19:32,800 --> 00:19:35,766
and secure the network that remains super critical

579
00:19:35,766 --> 00:19:39,033
right nailing that L1L2 value relationship

580
00:19:39,033 --> 00:19:39,700
these are all

581
00:19:39,700 --> 00:19:42,566
definitely vital areas for Ethereum to keep working on

582
00:19:42,566 --> 00:19:44,033
if it wants to stay at the forefront

583
00:19:44,033 --> 00:19:45,866
seems like it so okay

584
00:19:45,866 --> 00:19:48,566
let's try and wrap this deep dive up for our listeners

585
00:19:48,766 --> 00:19:50,766
the bottom line seems to be that yes

586
00:19:50,766 --> 00:19:52,366
despite the negative headlines

587
00:19:52,366 --> 00:19:54,866
despite the real challenges Ethereum is facing

588
00:19:55,200 --> 00:19:56,700
when you dig into the sources

589
00:19:56,700 --> 00:19:59,833
you find a network with pretty strong fundamentals

590
00:19:59,833 --> 00:20:00,866
underneath yeah

591
00:20:00,866 --> 00:20:02,700
lots of development still happening

592
00:20:02,833 --> 00:20:05,400
and a proven history of getting through tough spots

593
00:20:05,433 --> 00:20:07,166
right the sources

594
00:20:07,166 --> 00:20:09,600
really push you to look past the day to day noise

595
00:20:09,600 --> 00:20:12,233
the price charts and actually examine the activity

596
00:20:12,233 --> 00:20:13,166
the tech improvements

597
00:20:13,166 --> 00:20:15,566
the sheer amount of building happening on

598
00:20:15,566 --> 00:20:18,300
around Ethereum it actually reminds me of this analogy

599
00:20:18,300 --> 00:20:19,400
one of the sources used

600
00:20:19,400 --> 00:20:21,133
which I thought was kind of memorable

601
00:20:21,200 --> 00:20:24,400
they called Ethereum the cockroach of crypto huh

602
00:20:24,700 --> 00:20:26,400
the cockroach of crypto okay

603
00:20:26,400 --> 00:20:27,633
explain that one well

604
00:20:27,633 --> 00:20:31,100
the idea being that it's just incredibly resilient

605
00:20:31,100 --> 00:20:32,700
it's weathered so many storms

606
00:20:32,700 --> 00:20:34,800
so many predictions of its demise

607
00:20:35,000 --> 00:20:36,166
but it just keeps building

608
00:20:36,166 --> 00:20:39,400
keeps evolving keeps surviving relentlessly huh

609
00:20:39,633 --> 00:20:41,233
that's actually a pretty powerful image

610
00:20:41,233 --> 00:20:43,066
not glamorous maybe but powerful

611
00:20:43,066 --> 00:20:44,966
it speaks to endurance exactly

612
00:20:45,000 --> 00:20:48,466
so maybe the final thought for you the listener is this

613
00:20:48,766 --> 00:20:51,500
while the crypto spotlight often jumps to the newest

614
00:20:51,500 --> 00:20:52,733
flashiest thing

615
00:20:53,066 --> 00:20:56,166
what does Ethereum's quiet maybe sometimes

616
00:20:56,166 --> 00:20:57,900
messy but persistent evolution

617
00:20:57,900 --> 00:20:58,700
tell us

618
00:20:59,000 --> 00:21:01,800
what does that resilience suggest about finding real

619
00:21:01,800 --> 00:21:04,866
long term value versus just chasing the hype

620
00:21:05,100 --> 00:21:06,000
something to think about

621
00:21:06,000 --> 00:21:08,700
as you watch this whole space continue to unfold

622
00:21:08,833 --> 00:21:10,566
consider that difference between hype

623
00:21:10,566 --> 00:21:11,966
and fundamental strength