Last night my latest Seeking Alpha piece went live and as you may have inferred from the headline of this post, I covered Ethereum. For this installment of SA After-hours, I want to elaborate on one of the main points from the Seeking Alpha article that I feel is of significant importance. That point is ETH's gas fee utility. Of all the charts we can look at to compare digital assets, the one that blows my mind is the chart that shows daily on-chain transactions. I shared that chart in the SA article, so I won't be redundant here. Simply, ETH has nearly five times the daily on-chain transactions of BTC right now. The logical conclusion one might jump to would be that ETH transactions are much cheaper on-chain than BTC.
As it turns out, that's not actually true. Over the last 12 months, the transaction fees have been very similar in USD cost. At times, ETH has actually been more expensive to move on-chain. And yet, the network is utilized far more on a daily basis. It can't be understated how important this is. Why is it happening? It's because digital asset investors need ETH to acquire other tokens that they can't get with custodians or on exchanges. Investors looking for yield in some tokens need ETH to stake in various DeFi protocols. This is why ETH is going higher. As investors look to this new exciting asset class, they're going to be buying ETH too. I'll now share a few of the tokens on my radar that I've touched on previously either in text or on the podcast.
If you're really bullish sports and the communities that are built around fan loyalty, Chiliz is a token to take a look at. CHZ is behind Socios.com. This platform allows fans of numerous sports clubs and leagues to own membership in their favorite teams. There are various incentives to holding these membership tokens that could include something as simple as access to promotional offers from the teams or even influence in decision making. It's a very cool project and one that I'm high on. Current market cap is $2.9 billion. Access to this token in my jurisdiction requires self-custody and ETH.
Decentral Games (DG)
I've talked about Decentral Games previously and I'm very intrigued by it. This is a project that plans to build gaming entities throughout the metaverse. There are rewards for using and providing liquidity in the token. Gambling is something that has existed throughout human history. My take on DG is it is less of a bet on gambling and more a bet on the staying power of the metaverse and virtual reality. Given the current behavioral traits of the younger generation globally, I think the metaverse is an easy bet to make. Current market cap is $65 million. I needed ETH to acquire.
This is not to be confused with Rally Rd which is the popular fractional alternative investment app. Rally.io is an entity that aims to popularize creator coins or tokens. The goal here is for creators of all sorts to launch their own tokens and reward their fans. Similar to how content creators can offer premium memberships paid for with USD, creators who utilize their own tokens through Rally.io can provide incentives for token holders. Current market cap is $140 million. It's ambitious. For full disclosure, I do not own this token. I think it's interesting. But I think BAT serves a similar purpose in rewarding creators and likely has far fewer potential regulatory hurdles with the SEC.
That brings us to Basic Attention Token (BAT). I covered in my previous SA article. This is also an ERC-20 token but it's much easier to get exposure to that one through something like Coinbase or Uphold. In the coming days/weeks, I'll be sharing a handful of other projects that I find interesting in the digital space. You will likely need ETH and a Metamask wallet to get them. And they will be visible only to Full Access Members of the site. One of them was actually a tip from a member and it's up 42% since I got in. You're a king among men, XRP-Wing.
Standard Disclaimer: I'm not an investment professional. I just share what I'm doing so you can form your own opinion. I am long ETH, BAT, DG, and CHZ.