Spencer Noon: From the chain and fundamentals, Ethereum is stronger than ever
Recently, Spencer Noon, head of crypto investment at DTC Capital, said that institutions’ interest in DeFi is mainly reflected in the investment in ETH, rather than the actual “yield farming” business or DeFi tokens themselves: “In the past few weeks with institutions After talking with investors, fund managers, over-the-counter trading desks and family wealth management offices, my interpretation of DeFi is: the herd is here. They are excited about DeFi, but not familiar with it yet, so they buy ETH first.”
However, Noon does believe that investors who hold Ethereum risk exposure but are interested in DeFi, once they are more familiar with industry concepts and protocols, they will eventually “raise the scope of risk” to the DeFi token field. Spencer Noon shared three key factors, showing that Ethereum is stronger than ever in terms of on-chain and fundamentals.
He specifically pointed out the fees charged by miners, the number of Ethereum contract requests, and the number of daily active addresses: L1 is very healthy-long-term fundamental indicators show that Ethereum has never been so healthy.
1. The daily transaction fee of the ETH network has exceeded BTC;
2. The number of contract requests in September was 115 million, higher than 57 million on June 3;
3. Daily active addresses continue to exceed 400,000.
In an interview last month, he said: Multiple indicators show that DeFi assets are one of the most undervalued assets in encryption technology. He pointed out that the Aave agreement is currently setting record highs in outstanding debt and unique lenders every day. It also recorded a flash loan of US$440 million. “Flash loans” allow developers to obtain loans without providing collateral. Although Spencer Noon is an optimist for DeFi, he also stated that he is also optimistic about Bitcoin. Spencer Noon warned that the US presidential election may cause some market fluctuations in the short term. Other well-known traders also warned that the DeFi bubble will definitely burst. But Spencer Noon believes that the macroeconomic climate will drive a long-term bull market.
It is worth mentioning that although the DeFi boom has died down, the TVL value display is still evolving, and the entire DeFi may have just entered a period of silence.
The much-anticipated Ethereum 2.0 is also about to debut. Recently, ConsenSys researcher Ben Edgington said that the creation of the Ethereum 2.0 beacon chain is expected to be realized within six weeks. The opening of Phase 0 marks the beginning of POW’s transformation like POS. Perhaps Ethereum will once again lead the entire bull market cycle.
