Podcast Summary
Launch of Bankless DAO and ether's surge in May 2021: The Bankless DAO launched, Bitcoin price hovered around $55,720, Ether hit a new high of $3,600, and institutions bought ether as a new global store of value asset, potentially outpacing Bitcoin.
The crypto industry is moving at an incredible pace, and during the first week of May 2021, several significant developments took place. One of the most exciting was the launch of the Bankless DAO, a decentralized autonomous organization that is completely people-driven and has been experiencing a surge in activity. The Bitcoin price hovered around $55,720, while Ether hit a new high of $3,600, with much of the buying pressure coming from institutions rotating into ether as a new global store of value asset. This trend was reminiscent of the 2017 bull run, where ether outpaced Bitcoin. Ash, a crypto hedge fund analyst, highlighted 14 reasons why ether could be a higher upside treasury reserve asset compared to Bitcoin. The crypto market continues to evolve, and it's essential to stay informed to make the most of the opportunities it presents.
Ethereum's Growing Use Cases and Increasing Scarcity: Ethereum's market cap could increase significantly due to its growing use cases, increasing scarcity, and institutional interest.
Ethereum (ETH) is more than just a cryptocurrency, it's also a proven store of value with significant upside potential. With a market cap of $317 billion, it's currently only 25% the size of Bitcoin, but if it's equivalent in terms of store of value, its market cap could be much higher. ETH's scarcity is increasing with $9 billion worth of ETH now staked and the Ethereum Improvement Proposal (EIP) 1559 effectively cancelling out its inflation rate. Additionally, 22.5% of ETH is locked up in smart contracts, and the use of DeFi protocols is growing rapidly. Institutions are also showing interest, with large wallets holding more ETH and over $66 billion locked in DeFi protocols. Ethereum's developer community is also much larger than Bitcoin's, leading to more innovation and disruption. The derivatives market is maturing, and institutions are using it to gain exposure to ETH. ETH ETFs are coming to the US, and ETH is starting to de-correlate from Bitcoin. Ash, who works at a crypto hedge fund, predicts ETH's price could range from $10,000 to $100,000. Overall, Ethereum's growing use cases and increasing scarcity make it a compelling macro store of value and treasury reserve asset.
ETH's turn to shine in stablecoin adoption: ETH gains importance in stablecoin market, traditional banking's poor user experience fuels adoption, both ETH and Dogecoin have value through unique narratives
While ETH has seen a significant drop in value against DPI, it's now ETH's turn to shine as stablecoin adoption continues to hit new all-time highs. ETH's patiently waited its turn, and with USDC and Tether hitting 15 billion and 1 trillion dollars in on-chain volumes respectively, stablecoins are becoming increasingly popular due to the poor user experience in traditional banking. The speaker expresses frustration with the banking system's outdated processes and the ease of using cryptocurrencies. Additionally, Dogecoin's recent surge in value, driven by meme culture and Elon Musk's influence, is compared to Bitcoin as simply a different narrative and meme with value ascribed to it by the community. The speaker acknowledges that both Bitcoin and Dogecoin are memes but emphasizes the importance of the narratives behind them. Overall, the speaker sees potential in both ETH and Dogecoin, but emphasizes the importance of understanding the underlying narratives and values behind each.
Dogecoin's Volatility vs Uniswap's Stability: Dogecoin's lack of long-term holders and lost coins contribute to its price volatility. In contrast, Uniswap's new features and DAO resources offer stability and opportunities for future growth.
Dogecoin (DOGE) lacks a strong community of long-term holders due to its low conviction nature. This, coupled with a significant portion of the coins being lost, contributes to its extreme price volatility. Contrastingly, decentralized finance (DeFi) projects like Uniswap are gaining traction, with Uniswap v3's recent launch introducing new features and complexity. Uniswap v3 allows users to deposit liquidity for a specific price band, resulting in the creation of unique NFTs for each deposit. This innovation, along with the vast resources available in the Uniswap DAO, presents opportunities for those looking to contribute and shape the future of decentralized finance. Meanwhile, traditional exchanges like Gemini offer stable and reliable platforms for buying, selling, and earning interest on various cryptocurrencies. Overall, the crypto landscape is evolving, with new projects and opportunities emerging while older coins struggle to maintain their relevance.
Exponential growth of Uniswap V3 in first day: Uniswap V3 surpassed V2's first month volume in its first day, signaling strong demand for DeFi and NFT integration, despite initial challenges like UI bugs, compatibility issues, and higher transaction costs for liquidity providers.
Uniswap V3, a new Automated Market Making (AMM) system, has seen significant growth in its first day, surpassing the volume of Uniswap V2 in its first month. This exponential curve of growth indicates a strong demand for decentralized finance (DeFi) and Non-Fungible Token (NFT) integration. However, there have been some issues with the migration from V2 to V3, including UI bugs, compatibility problems with hardware wallets, and higher transaction costs for liquidity providers. Despite these challenges, the volume continues to grow as users explore the new system's features, such as the ability to provide liquidity as an NFT and the potential for lower slippage in certain trades. Overall, Uniswap V3 represents an exciting step forward in the DeFi and NFT space, with the potential to offer more efficient and customizable trading experiences.
Uniswap v 3: Efficient Stable Coin Transfers: Uniswap v 3 introduces improvements for stable coin transfers, allowing liquidity providers to offer liquidity against a narrow band of prices, and offering more flexibility, efficiency, and cost savings with lower fees for stable coin pairs.
Uniswap v 3 introduces significant improvements to stable coin transfers compared to its previous versions. Historically, stable coin transfers were less efficient due to the requirement of providing equal liquidity across the full spectrum of prices. However, with Uniswap v 3, liquidity providers can now offer liquidity against a narrow band of prices, making it particularly suitable for priced assets. This new feature allows users to create new positions or migrate existing ones, offering more flexibility and efficiency. Another key difference is the use of TVL (Total Value Locked) instead of the term "liquidity." In Uniswap v 2, all deposited funds were considered liquidity and spread evenly across the entire trading pair. In contrast, Uniswap v 3 requires users to specify where they are putting their money, making it TVL instead of liquidity. This change allows users to get more liquidity for less TVL, making their dollar go further in liquidity terms. Additionally, Uniswap v 3 introduces lower fees for stable coin pairs, with options for 0.3%, 0.5%, and 1% fee tiers. This change aims to attract more liquidity to stable coin pools and provide more efficient and cost-effective trading for users. Overall, Uniswap v 3 represents a significant step forward in decentralized exchange technology, offering improved efficiency, flexibility, and cost savings for users.
DeFi and NFT Markets Evolve: Uniswap V3 Complexity and NFT Social Signaling: Uniswap V3 adds complexity to DeFi trading but aggregators simplify access. NFTs like Meebits sell for millions, driven by social signaling.
Uniswap V3, with its multiple fee tiers and liquidity pools, is adding complexity to DeFi trading. However, aggregators and index aggregators are expected to simplify access to Uniswap V3 and other DEXs. Meanwhile, the NFT market continues to heat up with the release of Meebits, a 3D pixel version of CryptoPunks, which has already sold for millions of dollars. The success of Meebits and CryptoPunks can be attributed to their use as virtual avatars in the crypto community, creating a desirable social signaling effect. Despite controversy over the potential profits for the creators, the market's interest in Meebits shows no signs of slowing down. Overall, the DeFi and NFT markets continue to evolve, offering new opportunities and challenges for users.
New developments in crypto: Direct deposits, layer 2 chains, and privacy features: Direct deposits and withdrawals onto roll-up arbitrage and layer 2 chains make crypto transactions more efficient and cost-effective. Privacy features like zkDai on Aztec Protocol add to crypto's appeal as a non-sovereign, peer-to-peer, and private form of money. The Bankless DAO brings a community together to contribute and grow the crypto space.
The crypto space is continuously evolving, with new developments and innovations emerging regularly. One such development is the support for direct deposits and withdrawals from crypto exchanges like OKX onto roll-up arbitrage and layer 2 chains, rather than just Ethereum Mainnet. This is a significant step towards making crypto transactions more efficient and cost-effective. Additionally, the integration of privacy features, such as zkDai, into layer 2 solutions like Aztec Protocol, further enhances the appeal of crypto as a non-sovereign, peer-to-peer, and private form of money. The Bankless DAO, which aims to bring together a community of individuals interested in the crypto space, is another exciting development, providing an open platform for individuals to contribute and grow the DAO in their unique ways. Overall, these developments underscore the immense potential and innovation in the crypto space, and the continued evolution towards a more accessible, efficient, and private digital economy.
Decentralized Organization and Growth of the Bankless DAO: The Bankless DAO allows for a larger, more inclusive community and greater potential for growth and collaboration through its decentralized organization structure.
The Bankless DAO is an experiment in decentralized organization and coordination, allowing individuals and groups from around the world to join and contribute to the bankless movement. The DAO structure enables a larger, more inclusive community than what could be achieved through a traditional LLC, and allows for greater potential for growth and collaboration. The Genesis proposal serves as a template for other organizations to join and become media nodes within the DAO. The Bankless LLC team is proposing to continue their involvement and coordinate activities under the DAO structure, with Fridays designated as "DAO days" for focused contributions. The potential for professionals to contribute their skills and talents during their 20% hobby time is also exciting. Though the Genesis proposal is still open for voting, the experiment has already attracted a diverse and talented community, including Harvard professors and rocket scientists.
Bankless DAO invites more people to join and contribute: Bankless DAO encourages participation, offers grants, and advocacy for BANK tokens; Polygon launches $100M fund for DeFi adoption; Maker Foundation returns MKR holdings to community
The Bankless DAO is focused on inviting more people to join and contribute to the community. This means that there are opportunities for individuals to get involved, volunteer, and apply for grants to help build the Bankless Movement. The distribution of BANK tokens is still unknown and in the hands of the DAO, so advocating for oneself and proposing ideas is encouraged. Meanwhile, in the world of DeFi, Polygon, a successful layer 2 solution, is launching a $100 million fund to support DeFi adoption and has now entered the top 10 projects on DappRadar. The Maker Foundation is also returning all of their MKR holdings to the community as part of their plan to dissolve the foundation. Overall, these developments highlight the importance of community involvement and collaboration in the decentralized finance space.
Decentralization of Traditional Finance with DeFi and Institutional Interest: The Maker Foundation's transition to a DAO, cooperation between centralized and decentralized finance, and institutional buying signal a bullish DeFi season. Community power demonstrated through charity donations, and potential recognition of Binance Coin as hypersound money mark the evolving decentralized finance landscape.
The decentralization process of traditional financial systems is ongoing, with institutions showing increasing interest in decentralized finance (DeFi) assets. The Maker Foundation's transition into a DAO marks a significant step towards decentralization, and the cooperation between centralized and decentralized financial services is seen as the best approach for achieving the benefits of both worlds. Moreover, the conversation highlighted the bullish sentiment towards an upcoming DeFi season driven by institutional buyers. The donation of $100,000 by Bankless DAO to charity, initiated by a Twitter challenge, is a testament to the community's power and the potential impact of decentralized organizations. Another intriguing development is the potential recognition of Binance Coin (BNB) as hypersound money, with Udi Wertheimer expressing interest in discussing this on the Bankless podcast. The evolving landscape of decentralized finance and the involvement of traditional financial institutions are signs of a growing shift towards more decentralized financial systems.
Mainstream recognition of Ethereum and Bitcoin: VCs and banks endorse crypto, enabling direct trading, increasing use of NFTs, and onboarding more users
The adoption of cryptocurrencies, particularly Ethereum and Bitcoin, is expanding beyond the crypto community and into traditional finance. Gary Tan, a well-known venture capitalist, publicly endorsed Ethereum as "ultrasound money" on CNBC, indicating mainstream recognition. Additionally, US banks are partnering with NYDIG to enable Bitcoin trading, allowing customers to buy and sell crypto directly from their bank accounts. This integration is expected to onboard more people to Ethereum wallets and increase the use of NFTs, which can provide unique experiences or perks for fans, such as dinner with Gary Vaynerchuk. These developments demonstrate the growing profit incentives for banks and businesses to engage with cryptocurrencies, signaling a significant shift in the financial landscape.
Traditional industries adopt NFTs and cryptocurrencies: Coinbase partners with Sotheby's for Bitcoin and ether purchases, Upshot provides emergent pricing and appraisal for NFTs, Goldman Sachs invests in Coinmetrics - the crypto world intersects with traditional finance
NFTs and cryptocurrencies are increasingly being adopted and integrated into traditional industries and markets, such as art and finance. A notable example is Coinbase partnering with Sotheby's to allow the purchase of Banksy images using Bitcoin and ether. Upshot, an NFT appraisal platform, is also making strides in providing emergent pricing and appraisal for NFTs through a 2-sided marketplace and a wisdom of the crowds mechanism. These developments demonstrate the growing recognition and value of NFTs and cryptocurrencies in the real world, despite some perceived inflations and skepticism. Goldman Sachs' investment in Coinmetrics, a top-tier data analytics platform for crypto, further underscores this trend. Overall, the intersection of traditional finance and the crypto world is an exciting and dynamic space to watch.
Mainstream Adoption of Cryptocurrencies Continues: PayPal's Bitcoin and Ethereum indices, exploratory stablecoin plans, Galaxy Digital's BitGo acquisition, Elon Musk's Dogecoin influence, and A16z's $1B crypto fund indicate the crypto industry's momentum and importance of staying informed.
The crypto industry is continuing to evolve at a rapid pace, with major players like PayPal and Galaxy Digital making significant moves. PayPal's entry into Bitcoin and Ethereum indices and exploratory talks about launching a stablecoin are indicative of the growing mainstream adoption of cryptocurrencies. Galaxy Digital's acquisition of BitGo, a large crypto custodian, could signal plans to expand their business in the crypto space. Elon Musk's influence on Dogecoin and the potential infusion of $1,000,000,000 into the crypto industry through a new fund by A16z further highlight the industry's momentum. These developments underscore the importance of staying informed and engaged in the crypto space. Additionally, Synthetix and Metamask were highlighted as valuable resources for traders and investors looking to navigate the world of decentralized finance (DeFi) and earn yield on their collateral.
Decentralized Exchange (DEX) swaps: Find the best prices and lowest fees: DEX swaps on Metamask offer a convenient way to exchange tokens, providing the best prices and lowest fees through comparison of various platforms. Ethereum's shift to proof of stake is seen as more environmentally friendly and efficient, but opinions differ on its impact on the crypto industry.
Decentralized Exchange (DEX) swaps offer a convenient and efficient way to exchange tokens, with the added benefit of finding the best prices and lowest fees through the comparison of various platforms. Meanwhile, in the crypto world, Ethereum's shift towards proof of stake is seen as a more environmentally friendly and efficient alternative to proof of work. However, not everyone shares this perspective. Charlie Munger, a successful investor, expressed his disdain for Bitcoin's success and the creation of new financial products, viewing it as detrimental to civilization. These contrasting views highlight the ongoing debates and evolving nature of the crypto industry. To get started with DEX swaps, download Metamask and begin exploring the world of decentralized finance.
Embracing the Change in the Crypto Industry: Joining the crypto industry, especially Ethereum, presents risks but also significant rewards. Passionate individuals are encouraged to pursue opportunities despite uncertainties.
The ongoing revolution in the crypto industry, specifically with Ethereum, presents both opportunities and risks. While there is career risk involved in joining this new frontier, the potential rewards are significant in terms of economic strength, security, and legitimacy. Rob Paone, a recruiter for crypto jobs, encourages those passionate about the industry to pursue opportunities despite the risks. Personal experiences, such as the speaker's own decision to join the industry instead of going back to school, highlight the potential benefits of embracing the change. The excitement and potential of Ethereum are further emphasized through the discovery of a unique Uniswap logo featuring positive Ethereum-focused words in various languages. Overall, the consensus is that staying the same in the midst of a revolution carries its own risk.
Excitement for Bankless DAO's role in crypto and unique crypto art given: Bankless DAO's potential to unite crypto enthusiasts, experiment and promote technology, self-sovereignty, and coordination. Unique crypto art symbolizes crypto culture and unity.
The crypto community is excited about the potential of the Bankless DAO to carry crypto forward as a technology focused on coordination, self-sovereignty, and making the world a better place. Usama received a unique piece of crypto art, not an NFT, representing crypto culture and Uniswap. Ryan is particularly excited about the Bankless DAO and its ability to bring together a community of like-minded individuals, experimenting and rallying around the crypto movement. Chris Berninski's meme of the week humorously illustrates the ongoing tension between Bitcoin and Ethereum. The crypto journey is risky, but those who choose to embark on it are in it together with the Bankless DAO.
