💎 How to profit from the rise of ETH

GM everyone. This is 2036. We scroll for gems all day so you don’t have to.

Here’s what we’re serving up today 🍲: Ethereum is warming up to be one of the potential big winners of 2024. How do we capture more gains than if we were just holding ETH?

Let’s dig in.

Ether (ETH) was a big underperformer in 2023.

• Bitcoin was up +154%

• Solana was up +855%

• yet Ether increased by just +83%

[If you held $ETHE, you did much better. The fund was up +329% in 2023.]

Many people think Ethereum is dying slowly because of the rise of better, cheaper alternatives like Solana.

It’s true - transactions on Ethereum can take 30 seconds and cost $10-$50, sometimes more. On Solana, they cost $0.00002 and are near-instant.

So, Ethereum is expensive, yes. But it’s also highly decentralized and very secure.

People moving million-dollar NFTs or locking hundreds of thousands in DeFi protocols won’t mind paying a few hundred dollars in transaction fees and waiting 30 seconds.

In the same way there’s always demand for expensive New York City real estate, there will probably always be demand for Ethereum blockspace.

And here’s the kicker: the Ethereum ecosystem is about to get a lot better.

Blockchains called Layer 2s help Ethereum become faster and cheaper by processing its transactions on separate chains. They then send several transactions rolled up into one back to Ethereum.

And in January, Ethereum will undergo an upgrade - called Dencun - that will make these Layer 2s ten times cheaper to use.

We think that’s great news for Ethereum - and just one of the reasons ETH could do well this year.

On top of that, Ethereum also:

• holds more than half of all funds locked in DeFi

• generated more than $2 billion in fees in 2023

• will face less selling pressure from bankruptcy proceedings like Celcius in the future

• will be the next crypto to get an ETF after Bitcoin

So - sure, you can hold Ether and capture a lot of the gains.

But here are some investments in the Ethereum ecosystem that we think will outperform ETH…👀

1/ Lido - $LDO 💧

Lido is Ether’s main liquid staking protocol. Over 30% of all staked Ether is staked with Lido. When the price of Ether increases, Lido’s fees increase with it.

2/ Optimism - $OP 🔴 and Arbitrum -$ARB 🔵

$OP and $ARB are Ethereum layer 2s that stand to benefit from Ethereum’s upcoming upgrade.

Right now, Arbitrum seems undervalued relative to Optimism and is a darling coin of Pantera Capital.

But Optimism has the weight of a partnership with Coinbase - so a combination of both is probably the wiser play.

3/ Immutable X - $IMX 🎮

ImmutableX is a gaming-focused Layer 2 on Ethereum. And if you’re familiar with 2036, you know we’re bullish on crypto gaming.

$IMX will benefit from Dencun and the release of one of the most anticipated crypto games that’s integrated it - Illuvium.

4/ $PEPE 🐸

If the Ethereum ecosystem does well, leading memecoins should do even better. $PEPE was the breakout memecoin on Ethereum in 2023 and could continue outperforming in 2024.

Of course, if anything changes, you’ll be the first to know.

Happy ETH season 💎

[As this newsletter is being sent, the market is correcting strongly because a crypto analyst believes the SEC will deny the Bitcoin ETF. Our view doesn’t change.

If you were looking for an entry point to buy - you got it. The time to buy is when there’s blood in the streets, even if it’s your own]

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1/ Arbitrum token sets record high

2/ Michael Saylor will sell shares to buy Bitcoin

3/ What if the bitcoin ETF is denied?