Suzak 🐝 (❖,❖)

Etherfi's $ETHFI trades at 3x the market cap of Eigenlayer's $EIGEN. Or 1.3x the FDV. Let that sink in: An app that started as a liquid restaking wrapper on Eigenlayer now trades higher than the protocol it depended on. Etherfi pivoted to a credit card with a cashback. Nothing too fancy and multiple competitors do the same thing (although most are debit cards). Eigenlayer also pivoted to EigenCloud: verifiable cloud computing with EigenDA, EigenCompute, and EigenVerify. EigenCloud is technically more impressive. And few understand what it actually does. But a simple card that solves 'how do I spend my crypto' is winning. Infra is a hard sell. User facing products find PMF faster.

Etherfi's $ETHFI trades at 3x the market cap of Eigenlayer's $EIGEN. Or 1.3x the FDV. Let that sink in: An app that started as a liquid restaking wrapper on Eigenlayer now trades higher than the protocol it depended on. Etherfi pivoted to a credit card with a cashback. Nothing too fancy and multiple competitors do the same thing (although most are debit cards). Eigenlayer also pivoted to EigenCloud: verifiable cloud computing with EigenDA, EigenCompute, and EigenVerify. EigenCloud is technically more impressive. And few understand what it actually does. But a simple card that solves 'how do I spend my crypto' is winning. Infra is a hard sell. User facing products find PMF faster.

I have never been more bullish on crypto. Because the rules-based order is collapsing and the code-based order is rising. So the short term price doesn’t matter. As international law breaks down, we will need not just onchain currencies, but onchain companies. As the post-war order breaks down, we’ll similarly need the post-internet order. States will fail, and the network will take their place. We need internet capitalism, we need internet democracy, and we need internet privacy. So we need cryptocurrency.

Like clockwork: Russia is banning the export of 100+ grams of physical gold, about $17k USD at current prices. Expect more states to follow, first with bans and then with seizures if the price really soars. However, they’ll find it harder to do the same to decentralized cryptocurrency. So if you’re friendly with a state, you can use gold. Otherwise you’ll need crypto.