Is Celestia the Next Ethereum? Crypto’s Next Big Trade w/ Milk Road PRO
Mar 15, 2025
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The discussion shifts towards data availability, a burgeoning market with potential to challenge Ethereum. The emergence of Celestia as a competitor is examined closely. The podcast highlights the evolution from 'block space' to 'blob space' and emphasizes the impact of layer two solutions. Opportunities for decentralized trading are explored, especially with platforms like Definitive. Investment insights cover the dynamics between Ethereum and Celestia, while stressing the importance of long-term trends and regulatory developments in the crypto landscape.
The podcast emphasizes the shift in the crypto landscape from block space to data availability, positioning it as the next major investment opportunity.
It discusses the trend of successful crypto applications transitioning to their own chains to capture execution fees directly, enhancing operational efficiency.
The conversation highlights Aave's buyback program as a testament to its profitability, indicating a strong presence in the lending market despite market fluctuations.
Deep dives
Shift from Block Space to Data Availability
Recent discussions highlight a significant transition in the crypto landscape from focusing solely on block space to emphasizing data availability. While block space has garnered attention for years, competition has risen, impacting its profitability. The emerging thesis proposes that data availability, or blob space, represents the next major investment opportunity, driven by increased demand from decentralized applications (dApps) migrating to their own chains. With prominent players like Ethereum and Celestia leading the way, there is a strong belief that data availability will expand significantly as more dApps necessitate this essential resource.
The Rise of App-Specific Chains
There is a growing trend where successful applications in the crypto space, such as dYdX and Uniswap, are transitioning from being merely apps to launching their own chains. This strategic move allows them to capture execution fees directly rather than sharing revenue with the broader blockchain ecosystem. The ability to create customized chains has been made easier with advancements in technology, enabling quicker deployments and a greater focus on operational efficiency. As such, an increasing number of businesses will likely follow suit, leading to an ecosystem dominated by app-specific chains rather than generalized Layer 1 protocols.
Investment Opportunities in Data Availability Providers
The conversation points towards a future where data availability (DA) services are in high demand due to the proliferation of chains needing data storage for various transactions. The limited current providers like Ethereum and Celestia suggest an opportunity for significant revenue growth as DA becomes essential for app chains. As the demand for DA scales with transaction volumes, the scarcity of providers will contribute to increased valuations for these services. Hence, investors are encouraged to monitor the developments in data availability closely and consider allocating resources to promising DA providers for future growth potential.
Aave's Buyback Program and Revenue Insights
Aave has recently announced a buyback program aimed at utilizing its organic revenue to repurchase its tokens, with a proposal to buy back $1 million weekly. This initiative underscores Aave's profitability and position as a dominant player in the lending market. By generating substantial ongoing revenue—44% of the lending market—the protocol demonstrates resilience compared to others suffering declines. Aave's strategy of enhancing user rewards while maintaining conservative buyback policies indicates a forward-thinking approach that likely attracts both existing and new users while boosting its token value.
Fundamental Trends Beyond Short-Term Volatility
While some speculate a bear market due to fluctuating trading volumes, the on-chain data indicates a different narrative, highlighting growth in stablecoin usage and decentralized finance (DeFi) applications. The consistent rise in stablecoin supply and transaction volumes reflects a more robust underlying demand, suggesting that the market is evolving. As adoption of blockchain technology and infrastructural developments continue, the sentiment surrounding future trends becomes increasingly positive. Observing these patterns is essential for investors seeking to identify opportunities amidst perceived market fluctuations.
The Milk Road PRO team is back! Moving beyond the current focus on block space, this episode explores the growing importance of data availability and its potential to become a multi-billion dollar market. We examine whether Ethereum will maintain its leading position or if Celestia is emerging as a serious competitor.
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The information presented in this video is for educational and informational purposes only. It should not be considered as financial, legal. The views and opinions expressed by the speakers, are their own and do not constitute professional advice. Investing in cryptocurrencies carries significant risks, including the potential for substantial losses.
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