How DeFi drives Volatility for Ethereum 🤯

Hey everyone, I wanted to share some really interesting uh insights into Ethereum and why I think we should expect a lot of volatility. And uh right now is even you can see in one year the price can go from 4,000 to 1,700 just in a blink of an eye you know a few months and bam um back to uh back to this range where you know we've been stuck here for a few years and I wanted to show you some really cool things and to why I think the um the volatility here will increase. So, we're going to see some insane uh action. You know, we we'll just see um crazy highs and crazy lows. So, first first reason is the staking ratio has increased by 4% in just a year, right? And at this rate, uh you can just think of it as 2/3 of Ethereum is out in the market and one/ird of it is is is locked away. So people only can play around with 2/3 of Ethereum out in the market. And then you have projects like ours where we have 40 Ethereum and just one token. This is just one DeFi project where the the tokens are locked up like you cannot even remove these 40 Ethereum um because no one has access to it. So it's even better than staking because staking you know you can unlock this but even projects like some some small project like ours has this and you can imagine over time even if you're maybe not there right now over time with AI people will um stumble upon our tokconomics right or they will uh you know all of our tokconomics are audited and open source but you know someone might fork it and be successful even more successful than we are and but it's just a matter of time because AI is getting smarter and eventually more and more tokens will be like locked up and even even if you take a look for example at exchange reserves you know uh some of the old centralized exchanges that that's been around you know for for years you can see a lot of that supply is being uh I think diluted by ETFs by uh decentralized exchanges and by I think the biggest one is probably liquidity pools like for example we have uh one of our tokens where we provide uh 24 Ethereum here and then another 10 here right and this is just super tiny market caps like you know here for example this is what like 70 $72,000 market cap and we have $68,000 in liquidity it's it just it's kind of crazy with AI it's going to get so easy to sort of follow, you know, or like create new tokconomics and um and lock up more of Ethereum. And every time you lock more and more of Ethereum, it's just going the the um amount of uh tokens out in the market just keeps decreasing, you know, because like some of it will be lost, some of some of it will go into the DeFi ecosystems. And yeah, so that's that's what I'm sort of expecting. And uh even seeing Ethereum at 1,700 is like that's kind of crazy because you know only recently we were at 4,000 and yeah I just it just goes up and down and up and down and um it's going to be interesting. I I think we will uh we will break alltime highs and uh that's going to be sort of the new floor. I don't know how long you know may take a few more years but I think it's going to happen. It's uh it's going to be interesting, but we can experience more downside and violent. It's just there's so so few it's like the lower the Ethereum uh price is, the faster this staking percent increases. So, you know, the more time is spent down here, the um the faster I I expect that to grow. And, you know, we have projects like ours that also eat up uh liquidity. So, they're going to be very very interesting. Um maybe we can take a look at some of the um of the metrics in our tokconomics. So I think we're doing pretty good like um inflation is uh a little bit up on some tokens because there's been some burning. Uh so as the price decreases people buy up the supply and burn it and as Ethereum increases then they they go and sell it. So it makes sense and I think it's a it's a very interesting time you know if you if you were buying Ethereum at 4K and or like if you were selling Ethereum at 4K buying back here it's kind of a good value because you know you were um minting selling here and now you're burning here and uh you know if it goes back to like 4K that's awesome you know that's uh that's really great burn value. Um, and yeah, if you even take a look at uh there's some interesting metrics here. If you mouse over, you can actually see sort of the average that the person paid. So, for example, this person burned uh $100,000 in lock and the same time they minted $67,000. So, here they burned at like $7 and they minted 67. So they, you know, it's like 67% um ROI, but right now the price is uh let's see more. Sorry, where are the prices? Uh okay, one sec. So the price is like $2 and they were burning at $7. So yeah, uh just interesting metrics like as you burn more your um your average will go down, right? And it's like it is people burn this level, the price goes down because you know even if you burn a small amount of $2, uh your cost dollar average kind of goes down or burning and this is one of those numbers that's going down now as people are burning and participating in the game. So you can actually see that and um same for layer one. People are burning. Uh this is uh me like I I I burn a lot but I burn it in a smart manner. So, I think I I see burn. Yeah, I I currently have the most, but it's it's interesting like well, you always want to participate in your own ecosystem, right? Um yeah. Um it's going to be very interesting. Um yeah, volatility. That's that's the that's this video. Thanks everyone.