Crypto Analyst

Edward Wu

Crypto

Ethereum is an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality. It provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. Ethereum also provides a cryptocurrency token called "ether", which can be transferred between accounts and used to compensate participant nodes for computations performed. "Gas", an internal transaction pricing mechanism, is used to mitigate spam and allocate resources on the network.

<ul>
<li>Crypto market is driven by narrative in the short term, and capital favors new narratives. Ethereum restaking is the brand new narrative and biggest investment opportunity in this cycle.</li>
<li>Restaking and Liquid Restaking will bring upward pressure to ETH, and tokens of Liquid Restaking protocols will benefit from the growing restaking market.</li>
<li>DeFi use cases related to Liquid Restaked Tokens introduce increased financial leverage to the Ethereum DeFi ecosystem, which also entails heightened risks.</li>
</ul>


Crypto market is driven by narrative in the short term, and capital favors new narratives. Ethereum restaking is the brand new narrative and biggest investment opportunity in this cycle.
Restaking and Liquid Restaking will bring upward pressure to ETH, and tokens of Liquid Restaking protocols will benefit from the growing restaking market.
DeFi use cases related to Liquid Restaked Tokens introduce increased financial leverage to the Ethereum DeFi ecosystem, which also entails heightened risks.


Restaking, the Biggest Opportunity and Risk in Ethereum

Virtual currencies are decentralized, math-based digital assets in which transactions can be performed cryptographically without the need for a central issuing authority. The first specification and proof of concept of Bitcoin, the first widely used virtual currency, was published in 2009 based on a paper published pseudonymously by Satoshi Nakamoto.

<ul>
<li>DCG’s subsidiary Genesis is likely to become the next insolvent crypto lender,  market fears its failure will lead to the dissolving of Grayscale, which held 3% of bitcoin’s total supply;</li>
<li>Grayscale is a profitable business with $200 million annual fee income from the GBTC trust, DCG or any new buyer of Grayscale has no intention to dissolve the cash cow;</li>
<li>Even if Grayscale dissolve, it won’t cause another crash as only $1 billion value of bitcoin may be dumped into the market, only 3.3% of bitcoin daily trading volume;</li>
</ul>


DCG’s subsidiary Genesis is likely to become the next insolvent crypto lender,  market fears its failure will lead to the dissolving of Grayscale, which held 3% of bitcoin’s total supply;
Grayscale is a profitable business with $200 million annual fee income from the GBTC trust, DCG or any new buyer of Grayscale has no intention to dissolve the cash cow;
Even if Grayscale dissolve, it won’t cause another crash as only $1 billion value of bitcoin may be dumped into the market, only 3.3% of bitcoin daily trading volume;


No Worry, DCG, Genesis, and Grayscale Won’t Cause Another Crash in the Crypto Market

<ul>
<li>Ethereum is the only profitable blockchain, a analysis of revenue and expense of Ethereum;</li>
<li>Ethereum staking ratio is the lowest among all PoS blockchains and the Shanghai upgrade in March will change this;</li>
<li>Why will there be a short-term rally ahead of the Shanghai upgrade?</li>
</ul>


Ethereum is the only profitable blockchain, a analysis of revenue and expense of Ethereum;
Ethereum staking ratio is the lowest among all PoS blockchains and the Shanghai upgrade in March will change this;
Why will there be a short-term rally ahead of the Shanghai upgrade?


Profitability of Ethereum and a Short-Term Rally Ahead of the Shanghai Upgrade in March

Chainlink is a decentralized oracle network. Oracles provide the data needed for smart contracts to function. Chainlink provides the technology and ecosystem that connects on chain smart contracts to off chain data sources. LINK is the native token of the Chainlink network. It is used as a payment method for oracles services on the network as well as a form of collateral backing up oracles services.

<ul>
<li>Chainlink provides essential data-feeding services for blockchains, providing a bridge between blockchains and real-world information and data sources for both crypto and non-crypto use cases.</li>
<li>LINK token captures Chainlink’s network value, and new tokenomics 2.0 introduce staking further improve the supply &amp; demand dynamic.</li>
<li>LINK price is supported by the growing usage of Chainlink network as onchain activity continues growing despite the bear market.</li>
</ul>


Chainlink provides essential data-feeding services for blockchains, providing a bridge between blockchains and real-world information and data sources for both crypto and non-crypto use cases.
LINK token captures Chainlink’s network value, and new tokenomics 2.0 introduce staking further improve the supply &amp; demand dynamic.
LINK price is supported by the growing usage of Chainlink network as onchain activity continues growing despite the bear market.


2023 High Conviction – Chainlink, Bridging Blockchain with Real-World Data Source

<ul>
<li>Despite Centralized exchanges (CEX) being unregulated and opaque in operation, over 90% of crypto transactions happened on CEXs.</li>
<li>DeFi exchanges are transparent and impossible for appropriation, but gain market share very slowly due technically difficult of building on blockchain.</li>
<li>Uniswap is the largest spot decentralized exchange that stands to benefit from capital relocation from CEX to DEX, Uniswap token is a pure governance token without value capture.</li>
</ul>


Despite Centralized exchanges (CEX) being unregulated and opaque in operation, over 90% of crypto transactions happened on CEXs.
DeFi exchanges are transparent and impossible for appropriation, but gain market share very slowly due technically difficult of building on blockchain.
Uniswap is the largest spot decentralized exchange that stands to benefit from capital relocation from CEX to DEX, Uniswap token is a pure governance token without value capture.


Implication for Decentralized Exchange Amid the FTX Collapse – A Case of Uniswap

Ventured into the Crypto Jungle in 2020 and survived the 2022/2023 crypto winter. 

Living through one full cycle has equipped me with a profound understanding of the crypto markets.

Focused on Bitcoin, Ethereum, and their ecosystems, also convinced DeFi and RWAs will revolutionize finance. Ocassionally dabble in memecoins, enjoying their community-driven vibrance.