Podcast Summary
Coinbase rolls out NFT program, Regulator shares thoughts, Possible crypto executive order: Coinbase introduces NFT marketplace, Hester Peirce discusses crypto, Rumors of Biden's crypto executive order, David interviews Andrew Yang, Permissionless conference tickets on sale, Largest DeFi event with discounts for Bankless subscribers, PoolTogether releases new product version
This week in crypto saw some major developments. Coinbase announced the rollout of an NFT program, Hester Peirce, a well-known regulator, shared her thoughts on crypto, and there were rumors of a possible executive order from President Biden regarding crypto. David had an exciting week with a podcast interview with Andrew Yang, and the Permissionless conference tickets went on sale with a new tranche and a discount for Bankless premium subscribers. The conference aims to be the largest DeFi event and will include after parties and opportunities for DAOs and DeFi teams to sponsor. PoolTogether also released the latest version of their product. Overall, it's an exciting time in the crypto space with many developments and opportunities.
PoolTogether's no-loss lottery experience with increased prizes, layer 2 support, and combined pools: PoolTogether's new version offers larger lottery prizes, Ethereum and Polygon support, and combined pools, while Bitcoin and Ether gain value and approach all-time highs
PoolTogether, a DeFi app, offers a no-loss lottery experience where users can join pools and have a chance to win prizes, including their ticket cost back. The app's version 4 is particularly exciting due to increased prizes, layer 2 support, and combined pools across Polygon and Ethereum Mainnet. Bitcoin and Ether both experienced gains this week, with Bitcoin reaching close to its all-time high and Ether experiencing a double-digit percentage increase. The ether-to-Bitcoin ratio has been painting higher lows but remains in the same range-bound area. The rumor of a Bitcoin ETF approval in October continues to heat up, potentially leading to significant price movements for both Bitcoin and Ether. The total locked value in DeFi is approaching $100 billion.
DeFi Landscape Shifting with DeFi 2.0 and Layer 2 Networks: DeFi 2.0 tokens are growing while some underperform, Ethereum's EIP 1559 burns over 500,000 ETH, and total value locked in Layer 2 networks hits new highs, signaling innovation and evolution in the DeFi space.
The crypto market, specifically DeFi tokens, are experiencing volatility with some tokens underperforming, while others, like those associated with DeFi 2.0, are seeing significant growth. The DeFi Pulse Index, which tracks the performance of the largest and longest-standing DeFi tokens, is currently showing a half-percent increase on the week. However, new metrics like the total value locked in Layer 2 networks are reaching all-time highs, indicating a shift in the DeFi landscape. Furthermore, Ethereum's EIP 1559 has already burnt over 500,000 ETH, worth over $1 trillion, in just two months, a sign of increasing adoption and potential scarcity. While DeFi 2.0 is still a topic of debate, it's clear that innovation and evolution are driving the space forward. Stay tuned for more insights on this developing trend.
ETH continues to be burned in large quantities: ETH's usage leads to significant ETH burn, making it a top pick among digital assets for investors, with growing adoption and use cases
Ethereum (ETH) is continuing to burn ETH through usage, with 531,000 ETH burned this week alone. This is a significant development that often gets overshadowed by the hype surrounding new narratives and trends in the crypto market. According to a recent survey, Ethereum is believed to have the most compelling outlook among digital assets, with 40% of respondents holding this view. The shift in sentiment towards Ethereum, particularly among institutional investors, is a notable change from just a year ago when DeFi was the focus. With approximately 10% of the global population owning crypto, Ethereum's growing adoption and use case make it an increasingly important asset to watch.
Miners accumulating Ethereum for PoS transition: Miners are stockpiling Ethereum ahead of PoS transition, indicating their intent to become stakers and adapt to the new mining model.
Miners are accumulating large amounts of Ethereum (ETH) in preparation for the upcoming transition from proof-of-work (PoW) to proof-of-stake (PoS) mining. This trend, which has been ongoing since July 2020, is evidenced by the significant increase in the amount of ETH held by known miner wallets. The impending PoS transition means that miners will need to adapt and become stakers in order to continue participating in the Ethereum network. This shift is reflected in the fact that miners are now accumulating ETH instead of mining new coins. Furthermore, Ethereum's gas prices have been consistently high, indicating that the network is burning more ETH than it is issuing. According to Justin Drake's calculations, Ethereum is currently in a state of "Mach 2.8 deflation," meaning that it is burning more ETH than it is issuing under proof-of-stake conditions. This trend is expected to continue once the Ethereum network fully transitions to PoS, likely in early 2022. Overall, these developments suggest that miners are positioning themselves to be part of the new Ethereum staking community and are preparing for the upcoming transition to PoS mining.
Revolutionizing Ethereum with Arbitrum: Increased Throughput and Centralized Exchange Experience: Arbitrum offers Ethereum increased throughput and lower costs, enabling developers to save on gas and enhance user experience. Centralized exchange functionality maintains Ethereum's security and decentralization.
Arbitrum is revolutionizing Ethereum's capabilities by significantly increasing its throughput at a fraction of the cost, providing a centralized exchange experience with Ethereum's security and decentralization. Developers can save on gas costs and enhance user experience by building on Arbitrum, while users can look forward to their favorite DeFi apps migrating to this layer 2 solution. ENS profiles now support NFT avatars, adding a new layer of personalization. Flashbots Protect offers transaction protection from malicious entities, and StarkWare's StarkNet Alpha is bringing general-purpose smart contracts to layer 2s, a major milestone for the crypto community. Overall, these developments represent significant advancements in Ethereum's scalability and functionality.
New developments in crypto: Arbitrum Nitro, XDefi, Pods Finance, KlimaDAO, and Optimism: Arbitrum Nitro enhances Ethereum's scalability, XDefi claims to be the fastest DeFi wallet, Pods Finance is live on Ethereum, KlimaDAO focuses on carbon credits on Polygon, and Optimism showcases applications on its optimistic rollup platform
The crypto space is continuously evolving with new upgrades, wallets, and DeFi projects. Arbitrum Nitro, a layer 2 scaling solution, is improving transaction speeds, volumes, and decreasing prices on Ethereum. XDefi, a new wallet ecosystem, claims to be the fastest in DeFi, but has yet to open-source its code. Pods Finance, an on-chain options protocol, is now live on Ethereum mainnet. KlimaDAO, a DeFi project focusing on carbon credits, is going live on Polygon mainnet. Binance Smart Chain, despite not being DeFi 2.0, has a $1 billion growth fund. Optimism, an optimistic rollup on Ethereum, is showcasing various applications on its platform. Overall, the crypto space is seeing innovation and growth in various areas.
Significant investments in Ethereum's DeFi sector: Notable DeFi projects like Consensus, MetaMask, Gelato, Paradigm, and Merit Circle raised substantial funds, with Consensus at $3B valuation, Gelato at $240M, Paradigm at $1.5B, and Merit Circle at $4.5M seed round. These funds will fuel innovation, industry solutions, and DeFi growth.
Ethereum's decentralized finance (DeFi) sector is witnessing significant investment and growth, with notable projects like Consensus, MetaMask, Gelato, Paradigm, and Merit Circle raising substantial funds at impressive valuations. Consensus, with its successful applications like MetaMask and others, raised $65 million at a $3 billion valuation. Gelato, focusing on smart contract automation, secured a $240 million investment. Paradigm, a leading investment shop, raised $1.5 billion to address core issues in the industry. Merit Circle, a crypto gaming guild, closed a seed round of $4.5 million. These investments demonstrate the immense potential and interest in the DeFi space, with private valuations rivaling those on the public market. These funds will be used to develop innovative solutions, address industry challenges, and drive the growth of DeFi projects.
Competition Heats Up in Crypto Space with Zuora and TradingView's Moves: Zuora offers 0% fees on NFT sales and moves towards decentralization, while TradingView focuses on crypto trading activity. These developments signal growing competition and innovation in the crypto space, offering opportunities for new entrants.
Two major players in the crypto space, Zuora and TradingView, have recently raised significant funding and are making moves to challenge the dominance of OpenSea and other centralized marketplaces. Zuora, an open marketplace for NFTs, is offering 0% fees on all NFT sales and is moving towards a more decentralized and permissionless model. TradingView, a charting platform, is seeing a surge in crypto trading activity and is becoming increasingly focused on the crypto market. These developments signify growing competition and innovation in the crypto space, and may provide opportunities for those looking to enter the industry. Additionally, the discussion highlighted the importance of skills such as development, community building, and project management in the crypto job market. The overall tone of the conversation emphasized the excitement and potential of working in crypto, with a blend of work and fun that sets it apart from traditional employment.
Coinbase enters NFT marketplace and social media space: Coinbase's centralized NFT platform with a million-person waitlist and fiat on-ramp is driving crypto and NFT adoption, with industry leaders like Hester Peirce emphasizing the industry's diversity and talent during the westward expansion-like growth.
The crypto industry is continuing to evolve with major players like Coinbase entering the NFT marketplace and social media space. Coinbase's upcoming NFT platform, which already has over a million people on the waitlist, aims to onboard more users with its centralized marketplace and fiat on-ramp. Hester Peirce, a supportive SEC commissioner, recently gave a speech at the Texas Blockchain Summit, comparing the crypto industry to the westward expansion of the United States, emphasizing the diversity and talent brought by those who ventured into new territories. These developments underscore the mainstream adoption of crypto and NFTs, with industry leaders continuing to push boundaries and innovate.
Comparing Crypto to the Historical Journey West: Regulatory clarity needed for crypto industry's growth, balancing investor protection and opportunity denial, and recognizing crypto's cultural significance.
Commissioner Hester Peirce compares the crypto industry to the historical journey west in America, emphasizing the creation of value and the need for legal clarity in the face of ambiguity and uncertainty. She raises questions about the regulatory approach and priorities, suggesting a potential conflict between protecting investors and denying opportunities. The speech highlights the cultural aspects of the crypto community and the motivations behind the westward journey, which could provide insights for effective regulation. Overall, Peirce's speech underscores the importance of understanding the crypto industry's unique characteristics and addressing its challenges with a thoughtful and inclusive approach.
White House Considering Executive Order for Crypto Regulation, Potential Leader Recused Due to Personal Holdings: The challenge of finding unbiased regulators for the crypto industry arises as those who understand it are often heavily invested in it, while a German auto firm uses Ethereum blockchain for car financing to eliminate paperwork and bring the paperless office vision to reality.
The White House is currently considering creating an executive order to oversee the crypto industry, but the person who might be best suited to lead this effort, Tim Wu, has had to recuse himself due to his personal crypto holdings. This situation highlights the challenge of finding unbiased regulators for the crypto space, as those who understand it are often the most invested in it. Meanwhile, a German auto firm has become the first in Europe to use Ethereum blockchain for car financing, aiming to eliminate paperwork and bring the original vision of a paperless office to reality, which was previously unachievable due to the traditional financial system.
The rise of custom-built smart contracts in finance: Companies are turning to custom-built smart contracts instead of DeFi platforms, signaling a shift towards replacing traditional paper contracts with digital agreements.
The use of smart contracts in finance is on the rise, with companies opting for custom-built contracts instead of Decentralized Finance (DeFi) platforms. This return to the original intent of smart contracts as agreements between two parties is expected to replace traditional paper contracts in the future. Polygon, a side chain, recently increased its gas prices to combat spamming and preserve decentralization. Meanwhile, the taxation issue for decentralized finance applications like MakerDAO, which aims to include real-world assets, remains unclear due to the lack of regulatory clarity for Internet-native institutions. Ethereum developers are currently working on solutions, but the long-term implications are still uncertain.
NFT Market Expansion: Visa, ViacomCBS Enter the Space: Visa's NFT entry signals crypto commitment, ViacomCBS explores IP NFTs, NYSE files for Bitcoin ETF, NFT projects create community tokens, potential industry transformations
The NFT market is expanding rapidly with major players like Visa entering the space and established brands like ViacomCBS exploring NFT opportunities. Visa's foray into NFTs is a sign of their commitment to the crypto world, while ViacomCBS' potential NFT collaboration could result in popular IPs like Spongebob and South Park becoming NFTs. Additionally, some NFT projects are issuing tokens, creating a sense of community and currency within these digital ecosystems. The New York Stock Exchange's filing for a Bitcoin ETF further highlights the growing acceptance and institutional interest in cryptocurrencies. These developments underscore the potential for NFTs and digital assets to transform various industries and create new digital societies.
US Becoming a Bitcoin Hub: The US is attracting Bitcoin miners and adoption due to favorable regulations, creating an advantage in the global financial system.
The United States is becoming a major player in the Bitcoin mining industry and the adoption of Bitcoin into the financial system due to the increasing hash power domiciled in the country. This trend, driven by miners moving from countries with stricter regulations, such as China, is making it easier for Bitcoin to be adopted into the legal system. Additionally, the game theory of trying to ban Bitcoin in a country doesn't work as some other jurisdiction will adopt it instead, giving that country a disadvantage. Another observation is the shift of DeFi and crypto adoption to countries with more favorable regulations, while those with stricter regulations see it move underground. Sam Bankman-Fried, a crypto billionaire, serves as an example of the significant wealth that can be made in crypto, but it's important to remember that not everyone in the industry is driven by the mission to decentralize the world or create a better open money system, some are just mercenaries looking to make as much money as possible.
Traditional Financial Figures and Companies Show Interest in Crypto: Notable figures and companies in traditional finance are investing in crypto and related technologies, including Solana, Bitcoin, and crypto policy, despite regulatory challenges
Despite some skepticism and regulatory challenges, notable figures and companies in the traditional financial world continue to show interest and invest in crypto and related technologies. For instance, Sam Bankman-Fried, who has publicly expressed his skepticism towards crypto, is backing Solana. Senator Lummis, a known crypto advocate, recently disclosed a significant Bitcoin purchase. Venture capital firms like 16z are pushing for crypto policy in Washington. Stripe, a payments company, is hiring for crypto roles. And BlockFi, a crypto lending platform, reported that its customers spend at a higher rate than traditional credit card holders. These developments suggest that despite regulatory uncertainty, there is growing acceptance and adoption of crypto in various sectors. However, it's important to note that regulatory challenges, such as the ongoing investigation into Sorare as a gambling platform, remain a significant hurdle.
Creating a New Digital Nation in Crypto: The crypto space is evolving into a digital civilization with its own currency, infrastructure, and values, where platforms like Alchemix offer innovative financial solutions and we're writing the constitutional protocols for a new economic system.
The crypto space is not just about trading digital assets, but also about building decentralized digital nations. As the conversation highlighted, platforms like Alchemix offer innovative financial solutions, while the broader crypto ecosystem is evolving into a digital civilization with its own currency, infrastructure, and values. David Hoffman's perspective that we're in the 1790s of crypto, where we're writing the constitutional protocols for a new digital nation, emphasizes the significance of this evolution. The crypto space is no longer just about trading assets but about creating a new economic system with the potential to rival the largest nation-state economies. This is an exciting time for the crypto community as we continue to build and innovate in this digital frontier. To stay informed and get involved, be sure to follow Alchemix and other key players in the space.
Vitalik's Criticism of El Salvador's Bitcoin Adoption: Vitalik's criticism of El Salvador's mandatory Bitcoin adoption was not about Bitcoin, but rather the lack of education and potential risks involved. Bitcoin maximalists reacted defensively, but Vitalik would have similarly criticized Ethereum in a similar situation.
Vitalik Buterin's criticism of El Salvador's mandatory Bitcoin adoption was not about Bitcoin itself, but rather the lack of prior education and potential risks involved. Bitcoin maximalists reacted defensively, accusing Vitalik of bias and promoting Ethereum. However, if the situation were reversed with Ethereum, Vitalik would have similarly criticized it. The debate raises questions about the approach to cryptocurrency adoption and the importance of individual freedom and education in the space. Some Bitcoiners, like Nick Carter, support the fair critique of El Salvador's adoption method. Ultimately, the value of a cryptocurrency project lies in its adherence to its ethos and community, as demonstrated by Vitalik's stance on Ethereum. Additionally, Eric Wright emphasizes the significance of good vibes and community building in Web 3.0, which goes beyond just feeling good and requires actual work and coordination.
The power of good vibes in NFTs and crypto: Good vibes, a mix of work and play, drive engagement and value in NFTs and crypto. Scarcity from artists' time and effort gives NFTs value, while traditional structures face challenges in crypto, but unique experiences and community spirit thrive.
Vibes, whether it's in social circles or in the digital world of DAOs and NFTs, play a crucial role in driving engagement and value. A good vibe is a combination of work and play, and it's what sustains communities and projects. In the context of NFTs, scarcity created by an artist's time and effort is what gives value to these digital assets. Meanwhile, in the crypto world, traditional structures like supply chains are facing challenges, but the digital realm is thriving, as seen in the record-breaking NFT volumes. And sometimes, even in the face of hacking attempts, the community spirit and unique experiences in crypto can bring unexpected humor and intrigue.
Embracing the Digital World while Maintaining Human Connection: NFTs offer status, funds, and collectibility, but the digital world presents challenges and opportunities for sustainability and accessibility. Human connection and engagement remain vital, whether in-person or through podcasts. Regulators are human too, focus on their mission and potential positive impact of crypto on society.
As we move forward in the digital age, the value of physical possessions is being surpassed by digital assets. NFTs, in particular, have become desirable for their status, funds, and collectibility. However, it's important to remember that the digital world is not without its challenges, but it also presents opportunities for environmental sustainability and accessibility. Another key takeaway is the importance of human connection and engagement, whether it's through meeting heroes in person or having meaningful conversations with them on podcasts. This reminder was emphasized during an interview with Andrew Yang, who proved to be an authentic and inspiring figure. Regulators, too, are human beings with their own perspectives and motivations. It's crucial to humanize them and focus on the mission of convincing them of the value of crypto and its potential positive impact on society. Overall, the conversation highlighted the importance of embracing the digital world while maintaining a human connection, and the potential for crypto to make a significant impact on hearts and minds.
Exploring the Nuances of NFTs and Crypto: A Frontier Journey: The crypto world is risky but rewarding, emphasizing education, community, and embracing risks. Understanding NFTs' nuances and joining the Bankless community can lead to exciting discoveries, like the difference between taking a picture of art and owning an NFT.
The world of NFTs and cryptocurrencies can be risky, but also exciting and innovative. During a recent discussion, the speakers emphasized that ETH, DeFi, and Bitcoin all come with potential losses, and none of it should be considered financial advice. However, they encouraged viewers to join the Bankless community on the journey of exploring this new frontier. A memorable moment from the conversation involved the comparison of people taking pictures of art at museums to right-click saving NFTs. While taking a picture doesn't equate to ownership, it's a part of human culture. This comparison highlights the importance of understanding the nuances of NFTs and the crypto world. Additionally, the speakers discussed the playful side of the community, with references to Halloween costumes and memes. These elements showcase the camaraderie and lightheartedness that can be found within the crypto space. Overall, the discussion emphasized the importance of education, community, and embracing the risks and rewards of the crypto world. As Hester Peirce, the Commissioner of the Securities and Exchange Commission, said, "This is the frontier. It's not for everyone, but we're glad you're with us on the Bankless journey."
