Vitalik just told $ETH holders to stop treating the fee burn as the value story — while ETH sits at $2,240, still about 8.6% below Wednesday's $2,450 high.
A couple of hours ago he argued that "ETH as store of value" makes more sense than "ETH as fee-burning token." EIP-1559 stays — he called the burn "fine and good" — but said holders should not feel sad if fee burn stays below 10% of breakeven indefinitely. The value, in his view, comes from elsewhere: decentralization, censorship resistance, privacy, and security.
His example: $1 billion burned a year, discounted at 4%, only supports about a $25 billion "floor" — far below the ~$270 billion market cap he referenced. The big 2021–23 burns were mostly crypto-internal, so they were never a true floor.
On Binance, ETH is at $2,239.77 (-0.28%), range $2,223–$2,248, after Thursday's 7.7% dump from that $2,450 wick. It has barely moved for three days.
My take: if ETH is a store of value, a quiet Sunday with thin burns matters less than whether $2,220 holds. The tougher test is whether a SoV with net issuance can compete with $BTC's fixed supply.
Do you hold ETH for the burn, or as a store of value?
$ETH $BTC
#Ethereum #Vitalik #BinanceSquare #ETH #StoreOfValue
Not financial advice.
A couple of hours ago he argued that "ETH as store of value" makes more sense than "ETH as fee-burning token." EIP-1559 stays — he called the burn "fine and good" — but said holders should not feel sad if fee burn stays below 10% of breakeven indefinitely. The value, in his view, comes from elsewhere: decentralization, censorship resistance, privacy, and security.
His example: $1 billion burned a year, discounted at 4%, only supports about a $25 billion "floor" — far below the ~$270 billion market cap he referenced. The big 2021–23 burns were mostly crypto-internal, so they were never a true floor.
On Binance, ETH is at $2,239.77 (-0.28%), range $2,223–$2,248, after Thursday's 7.7% dump from that $2,450 wick. It has barely moved for three days.
My take: if ETH is a store of value, a quiet Sunday with thin burns matters less than whether $2,220 holds. The tougher test is whether a SoV with net issuance can compete with $BTC's fixed supply.
Do you hold ETH for the burn, or as a store of value?
$ETH $BTC
#Ethereum #Vitalik #BinanceSquare #ETH #StoreOfValue
Not financial advice.