Crypto analyst The Short Bear has addressed investors who are currently capitulate to Ethereum and redeeming their coins. He cited a mistake these investors are currently making that could cost them money if the bull thesis for ETH ultimately comes to fruition.
Analyst Reveals Misconception Investors Have About Ethereum
In one X messagesaid the Short Bear that many people are mistaken in treating Ethereum like a late-stage Amazon, as if the main question is already about mature margins, fees and cash flows. He explained that in reality the layer 1 network is much earlier in the economies of scale phase, with almost all figures in the upper right corner and growing at mid double to triple digits.
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The analyst further stated that most of the market is focused on the wrong battle, whose network can become the fastest and cheapest payment processor. However, he felt that the real value may not be in the game the transaction costs yourself. Instead, the Short Bear believes that the real value lies in the amount of economic activity secured by the network, the credibility of that security, the neutrality of the base layer, and the difficulty of replacing such a network once it becomes widely adopted.
De Korte Beer noted that this is where Ethereum seems different to him, and why many settings choose ETH. He noted that most other networks still feel expendable and that, if their advantage is primarily technical efficiency, it could ultimately be copied or made irrelevant. However, the analyst believes that Ethereum stands out because the network aims to become the most secure, decentralized and credibly neutral settlement layer for the internet economy.
In line with this, the analyst stated that the most valuable network may not be the one with the lowest transaction costs. Instead, it may be the one people rely on most to safeguard the most valuable assets and applications for the longest period of time.
How ETH could become one of the few neutral and safe bonds
De Korte Beer noted that 1/3 of the total Ethereum supply has now been deployed and that ETH would not be just an asset in this scenario. Instead, it could become one of the few truly neutral and safe bonds for the digital economy. The analyst outlined a scenario in which ETH maintains its market share while continuing to scale through upgrades that improve speed, throughput and costs. He noted that the potential remains significant, especially if AI agents become truly crypto-natives.
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The analyst added that if Ethereum earns its crown as the leading value-guaranteed network, ETH could ultimately be seen as a truly decentralized, inflation-adjusting global bond. In this scenario, he noted that ETH is a premium market capitalization because of the value it provides in protecting assets, in addition to the incentives to invest and earn returns.
Featured image from iStock, chart from Tradingview.com