What is Ethereum's GDP? ($)
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Sponsor: Uniswap Labs — Uniswap Labs launched a $15.5 million bug bounty to help secure V4.
- 🎉 ETH Surpasses $4,000. As Bitcoin breaks through the $100K barrier, ETH investors are hoping to hit ATHs soon.
- 🇺🇸 Trump Appoints David Sacks as White House AI & Crypto Czar. The president-elect appoints a SOL bull as his chief advisor on AI and Crypto.
- 🐧 Pudgy Penguins Expands to Solana with New Token Launch. PENGU is coming and it's not landing on Ethereum yet.
📸 Daily Market Snapshot: As ETH pops above $4K, investors are cautiously hoping the worst is behind the ETH:BTC ratio, which has climbed some 25% since hitting cycle lows last month. With BTC already pushing through the $100K barrier, narrative momentum may be shifting to when ETH will hit its own all-time highs. ETH still has a ways to go, still trading 20% below its ATH of $4,891.
| Prices as of 5pm ET | 24hr | 7d |
|
Crypto $3.70T | ↗ 2.6% | ↗ 8.8% |
|
BTC $100,846 | ↗ 1.9% | ↗ 3.4% |
|
ETH $4,042 | ↗ 4.7% | ↗ 12.4% |
|
ORCA $6.92 | ↗ 75.8% | ↗ 92.8% |
Traditional methods for valuing blockchain networks often mischaracterize them, treating them like corporations and using formulas that were specifically designed to calculate fair stock prices based on very narrow considerations. This approach is fundamentally flawed.
Blockchains, particularly smart contract platforms like Ethereum, are not businesses—as explained in my previous articles, they are emerging, sovereign, digital economies with their own reserve currencies. In other words, smart contract-based blockchains like Ethereum are emerging network states—digital nations that manifest not only through a technological stack but also through a monetary jurisdiction and reserve currency, a shared set of values and beliefs, a common history and culture, and sometimes even foundational myths.
Let's dig into the analysis and talk numbers 👇
Uniswap Labs is offering the largest bug bounty ever: $15.5M for critical bugs in Uniswap v4! Built with community contributions and rigorously audited, v4 will be one of the most audited codebases ever to be deployed onchain, and continues Uniswap’s commitment to security.
🧑🌾 Farming Alpha: Leverage is the name of the game, and stablecoin yields are going insane! Aave stablecoin yields have been spiking throughout the week as borrowers scoop up stables; meanwhile, the Protocol aggressively increased its exposure to Ethena’s staked USDe.
Although yields on Pendle’s stablecoin PTs saw market-implied returns spike this week, fixed-rate swaps maturing on December 25 are yielding considerably less than their variable rate underlyings, indicating the market expects rates will fall in the near future.
Top Opps:
- 🟠 BTC: 300% APR with Aerodrome’s tBTC-cbBTC pool on Base
- 🟠 BTC: 20% APY with Fraxlend’s WBTC pool on Ethereum
- 🟠 BTC: 15% APR with Convex’s cbBTC-WBTC pool on Ethereum
- 🟠 BTC: 7% APY with Pendle’s LBTC (Corn) PT on Ethereum
- 🔵 ETH: 7% APY with Pendle’s cmETH PT on Mantle
- 🟢 USD: 44% APY with Aave’s FRAX pool on Ethereum
- 🟢 USD: 28% APY with Pendle’s USDe PT on Ethereum
- 🟢 USD: 20% APY with Aave’s USDC pool on Ethereum
- 🟢 USD: 11% APY with Pendle’s aUSDC PT on Ethereum