New Paradigm - The Daily Gwei #179

The world is waking up to crypto.

Well the last 24 hours have been quite insane, hey? We had Tesla announce that they purchased $1.5 billion worth of BTC which sent the crypto markets into a frenzy and then just a few hours later the St. Louis Fed published a detailed research report on Ethereum and DeFi. It’s certainly starting to feel like we’re witnessing a “paradigm shift” in the crypto space.

This research report wasn’t just your run-of-the-mill report filled with buzzwords and limited understanding of the technology - it has deep insights into both Ethereum and DeFi and even goes as far as to give a full explanation on how AMM’s like Uniswap work. The word “Ethereum” is mentioned 22 times throughout the report with the author, Fabian Schär, starting the report with: “The term decentralized finance (DeFi) refers to an alternative financial infrastructure built on top of the Ethereum blockchain.” Pretty crazy, right?

For years crypto has been dismissed as a “fad” or a “scam” by plenty of people outside of the ecosystem but every single time crypto has bounced back and continues to disprove them. With billion dollar public companies now putting BTC on their balance sheets and Ethereum & DeFi working to usurp the entire financial system, it’s become impossible to ignore the momentum that our ecosystem has built over the last few years. I believe that this report is an important piece in shifting the public’s perception of crypto and ultimately will lead to faster adoption of Ethereum and DeFi.

As humans it can sometimes be hard for us to understand just how crazy exponential growth can get. Let’s take DeFi as an example here as just a year ago it was still considered a toy by everyone except the die-hard believers and both TVL and trading volumes of various apps were very low compared to their centralized counterparts. Fast forward one year later and now DeFi protocols are worth billions of dollars with DEXs like Uniswap doing more trading volume than Coinbase. On top of this, we have billionaire celebrities like Mark Cuban openly talking about DeFi and its benefits - this is what the cool kids might call a “paradigm shift”.

Now it’s always important not to get ahead of ourselves because we are still extremely early and there are a lot of growing pains that all of us are still experiencing. The term “paradigm shift” is also a meme within the crypto space because it can give people a false sense of security in bull markets leading them to make rash decisions due to euphoria. Though, in the context of the world finally waking up to crypto, I think the term fits perfectly well.

Have a great day everyone,
Anthony Sassano

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All information presented above is for educational purposes only and should not be taken as investment advice.