Dynamo DeFi, X Hall of Flame – Cointelegraph Magazine
2024.06.18 13:20
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The impact of spot Ethereum ETFs on Ether’s price once trading starts might challenge the old saying “first the worst, second the best,” suggests crypto analyst and educator Patrick Scott, also known as “Dynamo DeFi.”
The popular crypto personality predicts that Ether won’t follow in Bitcoin’s footsteps, after BTC almost doubled its price soon after the spot Bitcoin ETF launched in January.
“I’m not expecting the same sort of multiples immediately in a two-month period that we had with Bitcoin,” Scott tells Hall of Flame from his car in a parking lot, shortly before saying, “Hold on” because a police car has pulled up behind him.
Turns out they’re not after him, thank God.
Spot Ether ETFs lack the first-time excitement advantage
Scott continues by noting spot Bitcoin ETFs had the advantage of being the first crypto ETFs available to investors.
“Bitcoin was the first crypto, but also the first ETF. So people who had no crypto exposure suddenly could get crypto exposure by buying Bitcoin,” Scott says. He’s skeptical over whether those same investors are also going to be keen on Ethereum exposure.
“It’s what subset of those people are going to say, ‘now I’m gonna get extra crypto exposure by buying this other one,’” he says.
Who is Patrick Scott, Dynamo DeFi?
Scott has 77,000 followers on X — not on the same level as major influencers like Saylor and Buterin, but still enough to fill three Madison Square Gardens.
He’s best known for providing daily analysis on crypto projects, explaining market trends in an easy-to-understand tone, and even pointing out simple observations on the overall market sentiment.
(X/Patrick Scott)
Big pullback in Ether before launch could be a golden opportunity
He thinks the only way Ether might reach similar relative price highs as quickly as Bitcoin did after trading starts is if there’s a big dip before the launch.
“Unless we get a major retracement. I don’t think it’s going to be as extreme because we’re at a different place in the cycle when Bitcoin ETFs were approved,” he says.
When Bitcoin ETFs launched in January, it took just two months to reach its all-time high of $73,679 on March 13.
Scott also believes that major players aren’t as interested in Ether as they are in Bitcoin.
“I also think that there’s a lot less institutional acceptance of ETH as there was with Bitcoin,” he says.
What led to Patrick Scott achieving fame on X?
Like many crypto influencers today, Scott isn’t just sitting behind a keyboard in his mom’s basement sharing crypto tips and news, he also knows how to look good on camera.
But becoming an “influencer” in the first place was not planned. He has his crypto-illiterate but curious dad to thank for it.
“I first made a YouTube video because I was trying to show my dad how to do something in DeFi on the Avalanche Network. This was back in the spring of 2021 and there were no good videos I could find on how to do this thing,” he laughs.
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“I was like, okay, I’ll just record one, and if he’s having this issue, probably other people are, so I’ll upload it,” he adds.
He started posting videos more frequently and, after going viral a few times, started tweeting.
As his following grew, he realized he needed to create a more catchy name.
“I went through a Scrabble dictionary for words that start with D to go with Defi, and I picked Dynamo because it sounded cool, and I guess it comes from the Greek word for power,” he laughs.
After Scott got serious about X in 2022, he went through a “long period of time” where he’d queue up tweets every morning — usually seven, his lucky number. He mixed crypto how-tos with screenshots of news articles and his own commentary, which is how he built up his following.
(X/Patrick Scott)
He explains that the feeling of a post going viral is “just an insane dopamine rush.”
“I think humans are not equipped to suddenly have social validation from hundreds of complete strangers telling you that something you do is incredible and it’s overwhelming,” he says while admitting that he is used to it now.
What content does Patrick Scott enjoy?
Scott closely monitors several crypto traders and analysts to stay on top of all the trends and to block out the noise in the crypto market.
One of his “favorites” is pseudonymous crypto analyst Red Phone, who Scott believes is one of the best in the game.
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“I think he’s one of the best writers in crypto. He writes about the larger implications of things and not just like everyone talking about how macro is affecting crypto, but what I like about him is a lot of his writing he is talking about how crypto can affect the macro picture,” he says.
Skale Labs chief marketing and growth officer Andrew Saunders and podcaster and influencer DeFi Dad are two others that Scott closely watches.
According to Scott, Sanders has many “very entertaining takes on the crypto market,” while DeFi Dad is “a great interviewer and someone who really puts a high premium on Ethereum.”
(X/Boz)
What predictions does Patrick Scott have in mind?
Scott sees “every reason to think that we’re just in the lull before the secular adoption cycle,” anticipating an influx of mainstream retail investors to enter into the market in the next phase.
While he isn’t specifying exact price targets and timelines, he sees Ether’s recent pullback from $3,900 as “a gift” if you “look at it the right way.”
While he sticks to his prediction that Ether probably won’t double the way Bitcoin did within two months after ETFs start trading, he believes the overall trend will move similarly.
(X/Patrick Scott)
“I’ll say this: I expect a similar directional movement. But because we’re at different stages in the cycle. I don’t expect it to double,” he says.
However, he’s not keen on guessing how many months it might actually take for Ether’s price to double.
“I don’t want to make a specific prediction about months like that,” he responds after a cheeky nudge.
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Ciaran Lyons
Ciaran Lyons is an Australian crypto journalist. He’s also a standup comedian and has been a radio and TV presenter on Triple J, SBS and The Project.
