VERY IMPORTANT! 👇 The phenomenon you call an altcoin bull isn't actually caused by a shift in money from BTC or an inflow of cash! Forget all that misinformation! An investor holds ETH or BTC. Whale investors! They deposit it on Aave, the Defi platform, and receive stablecoins (USDT, USDC, etc.) as collateral in return. They use that stablecoin to buy altcoins, which then become collateral again, creating new debt, new purchases. Thus, as the ETH price rises, the collateral value increases, the debt capacity expands, and the altcoin's purchasing power multiplies. In 2021, DeFi TVL = $250 billion, 70% of which was based on ETH. As ETH rose, TVL also inflated "on paper," creating the illusion of massive liquidity. In other words, the statement "Altbulls are built with imaginary money" is technically true. Because most of the money in the system is debt/stablecoins printed with collateral. In other words, this is why BTC, ETH, and gold prices rise together in a real altcoin bull run. Whales attack ETH and BTC to borrow USDT with collateral, and buy altcoins by borrowing fictitious USDT. :) Fictional liquidity is created from real money. Here's "DEFI"... The higher BTC and ETH initially climb on their own, the bigger the altcoin will be! In 2017: ICOs exploded with ETH collateral. In 2021: DeFi and stablecoins operated with ETH and BTC collateral. In 2025 and 2026, Restaking (EigenLayer) + LRTs will recreate this "fictional money." So, not only staking, but also restacking ETH (eETH, rsETH, ezETH, etc.) will become collateral, and DeFi will be rebuilt on it. This means the system is printing collateral on top of collateral within itself. That's why the altcoin market isn't fueled by "real cash," but rather by "ETH-derived leveraged liquidity." So, I've whispered to you the reason EIGEN will be in the top 10... Get it on the frame :)) 😘
This article is machine translated
Show original
From Twitter
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
Like
Add to Favorites
Comments
Share





