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Bankless Episode: Ethereum to $3T

Valuing Ethereum using its cashflows, two upcoming investor webinars, and the top news, reports, and stats of the week. Plus LuvMonster NFTs for $2.

February 02, 2022

Issue Summary: This week we feature the video podcast we recorded yesterday on Bankless about the Ethereum DCF Model with our thoughts how to fairly value the world’s second largest digital asset, ETH. We also review the week’s top news, reports, and stats in the digital asset ecosystem, and share our special LuvMonster NFTs.

In This Week’s Issue:

  1. Upcoming Free Webinars for Institutional Crypto Investors 1. Feb 3, 2022 - Market Thoughts: Crypto Investing Update 2. Feb 10, 2022 - Crypto Investing for RIAs

  2. Bankless Interview with Ryan Allis - Ethereum to $3 Trillion (watch here)

  3. This Week in Crypto

    1. 🗞️ Top Weekly Crypto News

    2. 💵 Weekly Fundraises

    3. 📊 Key Stats

    4. 📝 Report Highlights

    5. 🎧 Best Crypto Podcasts

    6. 📈 Top 10 Tokens of the Week

  4. NFTs: LuvMonsters Collection - NFTs for $2 👀

  5. Coinstack Podcast Episodes

  6. Top 30: A Good Long-Term Crypto Portfolio

  7. Join Our Telegram Group

  8. Who We’re Following on Crypto Twitter

  9. How to Get Started in Crypto Learning

Thanks to Our 2022 Coinstack Headline Sponsors…

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HeartRithm is a crypto quant fund that invests in DeFi, margin lending, and algorithmic trading to generate monthly yield for institutional allocators and qualified clients in a market-neutral manner, without a single down month since inception. They also have a major social impact mission and are giving away a portion of their performance fee to fund philanthropic efforts. Learn more at www.heartrithm.com.

📺 Register for Our Upcoming Webinars

HeartRithm Managing Partner and Coinstack publisher Ryan Allis is hosting two upcoming 55 minute webinars on crypto investing for high net worth investors, family offices, wealth managers, and financial advisors covering our thoughts on crypto investing in 2022, how to invest in DeFi, which smart contract platforms are growing and mapping out the crypto hedge fund ecosystem. Register for free below.

🖥️ Bankless Interview on Why ETH Could Be Worth $3T Based on Its Cash Flows with Ryan Allis

Yesterday Coinstack Founder Ryan Allis was interviewed on Bankless, one of the top crypto podcasts, about how to fairly value Ethereum as an asset based on its cashflows.

Bankless Episode Summary:

  • Ethereum revenues in January 2022 were $1.35B

  • Annualized this is $16.2B in revenues

  • 70% of this is used (since August 2021) to reduce supply, an indirect cash flow like a stock buyback

  • 30% of this will be used, starting in July 2022 when Proof of Stake goes live, to pay out additional rewards to stakers (long-term holders) of Ether, a direct cash flow

  • Thus 100% of Ethereum revenues will be cashflows to holders

  • Assuming a 25% average annual growth rate, this makes the Discounted Cash Flow valuation of Ether $1.5 Trillion, which means the value of Ether based on its cash flows alone should be $12,623 per ETH token.

  • This $1.5T market cap could be even higher if you apply a monetary premium or look at the utility premium, with Ether becoming the primary money of the metaverse.

  • Ether is currently trading at a PE ratio of 20.3, which is low considering the average S&P 500 company is trading at a PE of 37 — and that Ethereum’s revenues have increased 407% in the last 12 months.

  • Thus we believe there is a strong case for institutional accumulation of Ether (ETH) once PoS goes live in July 2022 and cash flows to stakers begin.

About the Episode: Ryan Allis is a Managing Partner at HeartRithm, and a serial entrepreneur with 20 years in technology, marketing, and business. Ryan writes about Ethereum, Bitcoin, Polkadot, DeFi, Blockchain, Web3, and the future of money on Coinstack. Today, we're evaluating ETH according to Ryan's recent Ethereum Discounted Cash Flow Model and getting to the bottom of why ETH could be fairly valued at $10k+ based on cash flows to holders and stakers alone.

🗞️ Crypto News Recap: The Top 5 Stories

Welcome back to This Week in Crypto… everything you need to know in one scannable format. Here are the top 5 stories of the week...

  1. ​​⚡ Sec Rejects Fidelity’s Proposed Spot Bitcoin ETF - The SEC handed down its disapproval Thursday morning, according to a newly released filing. (Source)

  2. 😮 OpenSea Reimburses Users $1.8M Following Bug That Sold NFTs at Unbelievably Low Prices - The bug affected users who had transferred their previously listed NFTs, listing them at their earlier listed price. (Source)

  3. 🏧 World’s First DeFi ETF To Launch in Brazil Next Month - Fund will invest in tokens generated by decentralized apps rather than crypto or listed companies. (Source)

  1. 💰 State Senator Introduces Bill To Make Bitcoin Legal Tender in Arizona - However, the U.S. Constitution doesn't allow individual states to create their own legal tender. (Source)

  1. 🤑 India To Introduce 30% Crypto Tax, Digital Rupee CBDC by 2022–23 - Finance minister Nirmala Sitharaman believes the introduction of a CBDC will provide a “big boost” to India's digital economy. (Source)

💬 Tweet of the Week

💵 Weekly Crypto Fundraises & Deals

Here are all the crypto fundraises we heard about this week, ranked by size…

📊 Key Stats of the Week

Here are the most important and interesting stats in crypto this week...

1. Monthly NFT Marketplace Volume on Ethereum Increased by 210% to a New All-Time High of $7B

2. $1B Worth of Eth Burned in the Past 30 Days Due to Record High OpenSea NFT Transactions

3. Bitcoin Whales Buy at $38K As BTC Supply per Whale Hits 10-Year High

4. Blue-Chip NFTs (CryptoPunks, BAYC) Outperformed the Price Performance of Blue-Chip Tokens (BTC, ETH) in the Last Three Months

5. BTC’s Current High Volatility Suggests the Market Is Hesitant To Take Directional Bets

📝 Highlights From Crypto Reports

Here are the top highlights from the best crypto research reports this week…

Why Governments Have Powerful Incentives To Develop Digital Currencies (CBDCs)

By: Tiana Laurence

About the author: Tiana Laurence is a technologist, author, and venture capitalist. Tiana, writes an opinion piece on why governments have incentives to develop CBDCs. 

"Over the past two decades, there have been sweeping changes in how we manage and spend money — witness the rise of contactless payment, mobile banking and cryptocurrencies, to name a few. However, fiat currencies are still anachronistic in many ways — for example, they’re still underpinned by cash held by central banks and sanctioned financial institutions. Despite the fact that many governments now have the technology to digitize their currencies, most haven’t yet done so, even though most of us already receive paychecks or Social Security and make payments digitally through direct deposit.

But governments are increasingly taking a serious look at developing their own central bank digital currencies. The purpose of CBDCs, which can function alongside physical currencies, is to provide a regulated and secure way for people to exchange, store and use money digitally. The interest in CBDCs among governments is partly a reaction to the surging popularity of cryptocurrencies, which aren’t subject to monetary policy and are something countries have a clear interest in controlling.

While the establishment of CBDCs among major countries isn’t going to happen overnight, governments have every incentive to keep moving in that direction. This is why we should expect to see a greater emphasis on the development and implementation of CBDCs in the coming years — a shift that could fundamentally alter global commerce."

🎧 Top Crypto Podcasts of The Week

Here are the crypto podcasts that are worth listening to this week...

📈 Top Performers This Week

Here are the top 10 performing digital assets this week, out of the top 100 by market cap.

And here are the top 15 performers in the last week from all tokens with a market cap of $20M+.

The Top Performers This Month from the Top 100: Newton is an L1, Crypterium is a Wallet. Dovu is an L1, Centrality is a Venture Studio.

🎨 $2 LuvMonster NFTs - Collect Them Now

Here are the new LuvMonster NFTs from Mrs. Bubble that you can buy at our special pre-sale prices of $2.

New NFTs This Week - Limited Pre-Sale Available for $2 on OpenSea

Here are the new NFTs launching this week:

You can also join our Telegram group here for early NFT drop announcements.

Additional Coinstack Sponsors

Celo, the mobile-first blockchain that makes financial tools accessible to anyone with a mobile phone number, is a proud sponsor of Coinstack. Connect, transact, and store your crypto assets on the Celo blockchain using only an SMS interface. Learn more about Celo at www.celo.org.

Hive Digital is a leader in providing SEO and PPC services for blockchain, DeFi, Web3, and crypto companies. If you want to expand your organic presence and paid leads from Google and Facebook get a proposal from Hive Digital at www.hivedigital.com.

🎧 Latest Episodes of The Coinstack Podcast

We have a new Coinstack podcast. So far we’re at 17,032 listens and growing!

Here are the episodes we’ve released so far...

You can listen and subscribe on:

We really appreciate you listening and sharing the link with your friends.

📈 Our Top 30: A Long-Term Crypto Portfolio

Each week we include our top 30 list. If we were creating a portfolio from scratch right now that we didn’t want to touch for 5-10 years, we would be sure to include our top 5: ETH, DOT, SOL, AVAX, & FTM. Here’s our current top 30 for a well-rounded long-term crypto portfolio…

To see which exchanges to buy these on, use Coinmarketcap or Coingecko. We recommend using dollar-cost averaging and holding for a 5-10 year time horizon for any crypto investor as prices can fluctuate a lot in the short term.

💬 Join The Coinstack Telegram Community

Join our Telegram Channel here to chat with our community, ask questions, and learn more about the future of money as we move to a decentralized internet and the creation of a new open global monetary system that works for everyone. We now have over 1700 members on our Telegram.

💬 The People We’re Following Closely on Twitter

📚 How To Get Started With Crypto Learning

📰 The Coinstack Newsletter:

Tracking the most important blockchain stories of the 2020s, including a decentralized internet and the creation of a new open global monetary system that works for everyone. As always, published for informational purposes only. Please do your own research. Just our opinions. Not intended as financial advice as we are not financial advisors. We may be long on many of the digital assets we write about as we believe strongly in the sector. Please do your own research. Published and written weekly by Ryan Allis and Mike Gavela.

The information above does not constitute an offer to sell securities or a solicitation of an offer to buy securities. Further, none of the information here is a recommendation to invest in any securities. Past performance is no guarantee of future results. Any historical returns, expected returns or probability projections may not reflect actual future performance. All investments involve risk and may result in loss.

Comments and thoughts welcome on our Telegram channel:

Please share with your friends and colleagues.