Why ETH Is Destined To Go So Much Higher
🎯 Summary
Podcast Episode Summary: Why ETH Is Destined To Go So Much Higher
This 80-minute episode of The Edge Podcast, featuring host DeFi Dad, Nomadic, and returning guest Ryan Berkman (an ETH investor), focuses on the fundamental strength of the Ethereum network and the compelling long-term investment case for Ether (ETH), arguing that its price significantly lags behind its underlying utility and ambition.
1. Focus Area
The primary focus is Crypto/Web3, specifically analyzing the fundamental growth, technical upgrades, and macro-narrative shifts driving the value proposition of Ethereum (ETH) and its ecosystem, particularly in relation to Decentralized Finance (DeFi) and institutional adoption.
2. Key Technical Insights
- Dencun Upgrade Catalyst: The upcoming Dencun upgrade (slated around December 3rd at the time of recording) is highlighted as a key technical catalyst, expected to significantly benefit Layer 2 (L2) activity, which in turn supports the L1 and ETH as a store of value.
- L1 Scaling via L2s: The strategy of scaling Ethereum through L2s (rollups) is validated, with the Ethereum Foundation’s current strategy explicitly focusing on scaling L1 (via institutional adoption/blockspace) and scaling L2s (via blobs/data availability).
- Low-Risk DeFi as the Gateway: Vitalik Buterin’s concept of “Low-Risk DeFi” is discussed as the crucial entry point for global commerce. This concept emphasizes minimizing friction through decentralization, permissionless access, and automated execution, paving the way for broader adoption beyond simple lending.
3. Market/Investment Angle
- Strong Long-Term Conviction: The guest asserts a high conviction that ETH is “destined to go so much higher,” suggesting a reliable 5x return (not inflation-adjusted) over a 5-to-10-year horizon, positioning ETH as “buying the future of capitalism.”
- Sentiment Shift: The market sentiment around ETH has transformed from its “worst place” in Spring (when ETH was ~$1,500) to one of the most bullish periods since 2018, driven by mainstream recognition.
- Institutional Validation: The entry of major figures and DAOs associated with traditional finance (TradFi) buying and advocating for ETH provides a new, politically diverse coalition supporting the network’s long-term roadmap.
4. Notable Companies/People
- Ryan Berkman: ETH investor whose previous analysis from April proved prescient regarding the subsequent price rally.
- Ethereum Foundation (EF): Praised for its significantly improved execution, strategic coherence, and pragmatic evolution, including new institutional teams and a clear three-part scaling strategy.
- Digital Asset Treasury Companies (DAOs): Mentioned as crucial new stakeholders providing political backing and capital flows (e.g., SBET).
- Key Advocates: Joe Lubin, Joseph Schalam (ex-BlackRock), and Tom Lee are cited for pushing the ETH narrative into mainstream finance.
- The Defiant: Highlighted as a keystone organization operating at the intersection of Wall Street, government, and product development, effectively packaging Ethereum’s value proposition.
- Vitalik Buterin: His recent focus on “Low-Risk DeFi” and undercollateralized lending signals a growing acknowledgment and enthusiasm for DeFi applications built on the platform.
5. Regulatory/Policy Discussion
- Stablecoin Embrace: The growing acceptance of stablecoins by the new administration is viewed as a massive catalyst, as stablecoins (over 99% USD-denominated on-chain) represent global faith in the US dollar, which Ethereum facilitates permissionlessly.
- Alignment with American Values: Ethereum is framed as embodying core American principles: property rights, permissionless innovation, and freedom.
6. Future Implications
The conversation suggests Ethereum is evolving into civilizational infrastructure. The future involves DeFi expanding from simple lending into complex areas like undercollateralized lending and identity (using ZK proofs), effectively acting as the “gateway drug” for Ethereum to capture global economic activity by drastically reducing friction. The increasing importance of external stakeholders (DAOs, Robinhood, Coinbase) means the EF will become proportionally less central over time—a positive, subtractive philosophy.
7. Target Audience
Crypto/Web3 Professionals, Portfolio Managers, and Long-Term ETH Investors. The discussion requires familiarity with L1/L2 scaling, DeFi primitives, and institutional crypto narratives.
🏢 Companies Mentioned
đź’¬ Key Insights
"There's something on the order of $800 trillion in total global assets that's there for the taking to tokenize. So, even just a small percentage of that means trillions, tens of trillions, maybe on the order of $10 to $20 trillion being tokenized on Ethereum in the form of RWAs and stablecoins."
"I think it's insulting to my own intelligence that it's not half the value of the Bitcoin network right now, even though I believe it can eclipse the value of the Bitcoin network at any point in the future."
"Over the one to five-year horizon, I think we will see a peak top on Ether and a one to five-year horizon of at least $2 trillion, which is slightly less than Bitcoin is worth today."
"I think ETH is still undervalued today, primarily. I think the expression of that undervalue is in the ETH ratio relative to competitors, both Bitcoin as well as downmarket."
"The four-year cycle is much more dead than alive. And yet, the crypto cycle, or what I've kind of come to call seasons, is here to stay."
"the only reason it's not saturated today is that ambitious L2s like Base have intentionally taken the foot off the gas pedal of occurring their own TPS because they know blob space—today's blob space—can't handle that."