Podcast Summary
Bitcoin and Ethereum Price Movements and Developments: Bitcoin's price is rising, Ethereum's doubled since mid-July, attributed to EIP-1559, NFTs, and new platforms like Pool Together
The crypto market is seeing significant price movements and developments, particularly in Bitcoin and Ethereum. Bitcoin's price has been trending upwards, with some predicting a dominance move in the coming months. However, Anthony expressed skepticism towards this notion. Ethereum, on the other hand, has seen a rapid rebound, with prices almost doubling since hitting a low in mid-July. This price increase can be attributed to several factors, including the implementation of Ethereum Improvement Proposal 1559 and the surge in popularity of NFTs. Additionally, the introduction of no loss lottery platform Pool Together on Ethereum and Polygon provides an exciting opportunity for users to earn interest on their stablecoins. Overall, the crypto ecosystem is experiencing significant growth and innovation, moving beyond speculation and into real-world use cases.
Exploring Ethereum's growing importance beyond speculation: Ethereum's value as a standalone network is being recognized, potentially signaling a shift in how people view crypto markets as a whole
The interest in NFTs goes beyond speculation, as many people are using this technology to build new things and adopt it as part of a community. The market's behavior towards crypto may change in the coming years, and the current bull run in ether could be due to a combination of disbelief and complacency. The ETH BTC ratio, currently at historically high levels, typically shows Ethereum underperforming Bitcoin in Q3 and Q4, but this pattern may be breaking as Ethereum's value as a standalone network becomes more recognized. These developments could signal a shift in how people view Ethereum and crypto markets as a whole.
Institutional investors shift funds from Bitcoin to Ethereum: Institutional investors are exploring Ethereum for higher yields and opportunities beyond Bitcoin due to its growing DeFi and NFT sectors. Ethereum's increasing trading volume on major exchanges surpassed Bitcoin's for a quarter, signaling a significant development in the crypto market.
The market dynamics in the crypto space are showing a shift towards Ethereum as institutional investors seek higher yields and explore opportunities beyond Bitcoin. This trend is evident in the Genesis Q2 report, which shows a significant rotation of funds from Bitcoin to Ethereum. The Ethereum ecosystem, with its growing DeFi and NFT sectors, offers more possibilities for yield generation and value accrual, making it an attractive alternative for institutional investors. This trend is further underscored by Ethereum's increasing trading volume on major exchanges, surpassing Bitcoin's for an entire quarter. As the competition for being the industry's "Internet money" intensifies, the liquidity shift from Bitcoin to Ethereum signals an important development in the crypto market.
Institutional Interest in Ethereum Boosts DeFi and Its Value: Institutions like Fidelity and NYDIG are expanding Ethereum offerings due to customer demand. Ethereum's role in DeFi and institutional adoption are driving its current and future value.
Ethereum has been gaining ground against Bitcoin in terms of institutional interest and dominance in the crypto market. Institutions like Fidelity and NYDIG have been quietly expanding their Ethereum offerings due to increasing customer demand. The amount of money locked in DeFi has been fluctuating around $79 billion but is expected to continue growing. The Ethereum ratio in the DeFi pulse index is currently below the predicted call, but the speaker believes it will be hard for Ethereum-based projects to outperform Ethereum itself in a post-ETH 1559 world due to the feedback loop created by DeFi activity. The speaker also suggests buying the DeFi pulse index for those who don't want to sift through individual DeFi tokens. Overall, Ethereum's growing role in DeFi and institutional adoption are key factors driving its current and future value.
Crypto Industry Growth Amidst DPI ETH Ratio Downturn: The crypto industry is growing despite a downturn in the DPI ETH ratio, with the Bed Index up 8.6% and overall industry growth at 8.06%. Layer 2 solutions like Optimism and dYdX are seeing a resurgence in value, and projects like Optimism are growing without token incentives, indicating long-term sustainability.
While the DPI ETH ratio may not be performing well at the moment, the crypto industry as a whole is showing growth, with the Bed Index up 8.6% in the last week and the industry up 8.06% overall. Layer 2 solutions, such as Optimism and dYdX, are also seeing a resurgence in value due to increased deposits and strong showings from Uniswap V3 and other layer 2 projects. Despite this, some projects, like Optimism, are growing without token incentives, which is a positive sign for the long-term sustainability of these solutions. The optimism team recently appeared on the Bankless Show, but they have currently no plans to release a token. Overall, the crypto industry continues to be extremely hyped or extremely subdued, and it will be interesting to see how these trends continue to play out in the coming months.
EIP 1559 leads to significant ETH burning: Over the past week, 36,000 ETH, worth $111 million, has been burned, equating to 3.5 ETH per minute. The merge of Ethereum's proof-of-work and proof-of-stake networks may make this process even more efficient and bullish for ETH.
Ethereum's Ethereum Improvement Proposal (EIP) 1559 has led to a significant amount of Ether (ETH) being burned since its implementation. Over the past 7 days, approximately 36,000 ETH, worth around $111 million, has been burned. This equates to roughly 3.5 ETH being burned per minute. Anthony Sassano, a well-known figure in the Ethereum community, was surprised by the amount of ETH being burned, as he had expected around 70-75% of transaction fees to be burned based on research from Justin Drake. The ETH issue to burn ratio, which tracks the amount of ETH issued versus burned, currently shows that more than 35% of the ETH being issued is being burned rather than sold. This is a significant shift, especially in a proof-of-work environment. The merge of Ethereum's proof-of-work and proof-of-stake networks is expected to make this process even more efficient and bullish for ETH. The current rate of ETH burning is faster than Michael Saylor's dollar cost averaging into Bitcoin, with an average of $10,000 worth of ETH being burned every minute. The potential for ultrasound blocks, where more ETH is burned than issued, is also a possibility, especially during periods of high network congestion.
Ethereum Merge, NFT Market Growth, and Coinbase's Strong Quarter: The Ethereum Merge reduces ETH issuance by 90%, NFT market, led by Axie Infinity, reaches $1B in trading volume, and Coinbase surpasses revenue expectations, boosting ETH price.
The merge in Ethereum, which involves a significant reduction in ETH issuance through a process called the "triple halvening," and the ongoing burning of ETH, is a game-changer. This event, which is like the main course, dessert, and drinks all in one, represents a 90% reduction in new ETH supply. Furthermore, the NFT market, specifically Axie Infinity, is experiencing massive growth, with over $1 billion in all-time NFT trading volume. This trend is expected to continue, bringing in a new wave of adoption and builders in the NFT space. Additionally, Coinbase had a strong quarter, surpassing revenue expectations, leading to a price increase for the asset. Overall, these developments underscore the ongoing significance and growth of the Ethereum and crypto markets.
Innovation and expansion in DeFi: Uniswap's DAO, Balancer's advanced AMMs, and Arbitrum's layer 2 solution: Uniswap's DAO welcomes community contributions, Balancer introduces advanced AMM features, and Arbitrum's layer 2 solution brings popular DeFi apps to the ecosystem, driving growth
Uniswap's decentralized autonomous organization (DAO) welcomes contributions from the community, no matter how small. This includes the possibility of securing a grant to help steer the project in a desired direction, as was the case with Uniswap's sponsorship of Bankless. Balancer, another platform, offers a more powerful and flexible solution for automated market makers (AMMs) by allowing multiple tokens in a single pool, unlocking new possibilities. Balancer also introduces features like generating yield from idle tokens and programmable smart pools. Arbitrum, a highly anticipated Ethereum layer 2 scaling solution, is set to release in August, bringing a fully fleshed out ecosystem with popular DeFi applications like Aave, Curve, and Balancer. This could lead to significant growth in TVL and activity within the Arbitrum ecosystem. Overall, these developments underscore the ongoing innovation and expansion within the DeFi space.
New projects and tools in DeFi and blockchain: Arbitrum may release a token, Rarible simplifies NFT deployment, Gearbox offers generalized leverage, and Helium raises funds for network expansion
The decentralized finance (DeFi) space is continuing to innovate with new projects and tools. Arbitrum, a layer 2 scaling solution for Ethereum, is rumored to be releasing a token, potentially leading to aggressive yield farming activities. Rarible, an NFT marketplace, introduced a cross-chain system to simplify the process of building and deploying NFT projects across various chains. Gearbox, a new protocol, offers generalized leverage by providing access to a pool of capital for borrowing and yield farming in the DeFi ecosystem. Helium, a decentralized wireless network, raised $111 million through a token sale to help fund the expansion of its network. Overall, these developments demonstrate the ongoing growth and evolution of the DeFi and blockchain spaces.
Crypto Industry's Growth: Helium's $111M, Dune Analytics' $8M, Consensus' Liqality, and TaxBit's $130M: Helium raised $111M for a decentralized 5G network, Dune Analytics got $8M for Ethereum data analytics, Consensus launched Liqality wallet with $7M, TaxBit secured $130M for crypto tax software
The crypto industry continues to see significant investment and innovation, with several notable projects and companies raising substantial funds to advance their technologies. One intriguing development is Helium's successful $111 million raise for their decentralized 5G network, which represents a new approach to "liquidity mining for hardware rollouts." Elsewhere, Dune Analytics, a popular Ethereum data analytics platform, secured an $8 million Series A investment to expand its offerings and team. Additionally, Consensus, the Ethereum project behind MetaMask and Infura, launched a new crypto wallet, Liqality, with a $7 million seed round. TaxBit, a crypto tax software firm, also raised a massive $130 million Series B. For those seeking employment in the crypto space, numerous job opportunities are available from companies like Immutable X, Palette, Nervous Network, Impact Theory, The Graph, Argent, and Arbitrum. Overall, these developments underscore the growing maturity and vibrancy of the crypto industry, with continued investment and innovation driving its future growth.
The divide between decentralized and centralized assets in cross-chain transfers: The recent Poly Network hack underscores the risks of complex cross-chain transfers, but Ethereum L2s and cross-L2 transfers are simplifying the process and increasing security and accessibility.
The recent Poly Network hack, which resulted in over $600 million being exploited, highlights the divide between decentralized and centralized assets. The hacker, who was not very sophisticated, was forced to return the stolen funds after leaving a trail leading back to a centralized exchange where they had presumably completed KYC. USDT, a centralized stablecoin, was able to freeze the hacker's funds. This incident serves as a reminder that cross-chain transfers, especially those involving multiple chains or layers, can be complex and risky. The growing ecosystem of Ethereum L2s is simplifying cross-chain transfers, making them less risky and more accessible. Aave's exploration of building on other chains and layer twos is a new development in this space. The future of cross-chain transfers may lie in cross-L2 transfers, which offer the security and decentralization of L1 with the added benefits of L2. The industry is still in its early stages, and it will be exciting to see how these developments unfold and contribute to a fully trustless cross-chain system.
Projects expanding to other chains and tapping new markets: Aave, Uniswap, and others move to Solana, Avalanche, and more, retaining Ethereum value. NFT trends continue with Penguin avatars, but beware of scams.
Projects are expanding their presence beyond Ethereum to other chains as a defensive measure against potential forks and to tap into the growing user base on these layers. Aave is one such project moving its branches to Solana, Avalanche, and other layers, while retaining the value accrual on Ethereum. Uniswap has recently surpassed $1 billion in fees, highlighting the significant financial activity in DeFi. Gemini, the cryptocurrency exchange, has acquired Guesser, a prediction market platform, adding to its growing portfolio. In the world of NFTs, the trend of profile picture avatars has continued with the explosion of Penguin NFTs, with even The New York Times featuring them. This trend stems from the high cost of entry for popular NFT collections like CryptoPunks, and the desire for community membership. However, not all projects in this space are legitimate, and investors should exercise caution.
NFTs as Exclusive Clubs and Status Symbols: NFTs are more than digital assets, they offer membership to exclusive communities and serve as status symbols. The NFT market is expanding rapidly, with major players like FTX and DraftKings entering the space.
NFTs (Non-Fungible Tokens) are more than just digital assets; they represent membership to exclusive communities and serve as status symbols. The energy and excitement in the NFT space are palpable, with people willing to pay high prices to be part of these exclusive clubs. The latest trend is NFT Avatar games, where the appeal lies in the aesthetics of the digital assets. In the world of crypto, FTX, a major exchange, is sponsoring 137 Axie Infinity players from developing countries, allowing them to participate in the game and earn revenue. DraftKings, a US-based sports entertainment and gaming company, has launched an NFT marketplace, with Tom Brady as the first drop, rumored to be on the Polygon blockchain. The NFT market is expanding rapidly, with a potential total addressable market of the entire world and various industries. Bitcoin miners are benefiting from the hash rate drop due to the Chinese mining ban, making mining more profitable worldwide. These developments demonstrate the growing importance and influence of NFTs in the crypto ecosystem.
New US Infrastructure Bill Targets DeFi and Ethereum: The US infrastructure bill includes regulations targeting DeFi and Ethereum, while excluding Bitcoin and mining. The crypto industry views it as an attack and a sign of growing political influence.
The infrastructure bill in the US includes burdensome regulations specifically targeting DeFi and Ethereum, while Bitcoin and mining were carved out. This regulation was met with skepticism and disdain from the crypto industry, who view it as an attack on decentralized finance. The bill, which passed in the Senate, does not go into effect until 2023, leaving room for legal challenges. Despite the setback, the crypto industry sees this as a sign that they have made themselves a force to be reckoned with in the political arena. The attention brought to crypto by the bill could lead to increased education and understanding among politicians, potentially leading to more favorable legislation in the future.
Crypto Community Fights Back Against Regulatory Threats: The crypto community rallied against proposed regulations targeting DeFi and non-custodial market actors, while the departure of Binance US CEO added to regulatory pressure. Circle's move to become a bank signaled a shift in the crypto space, offering an alternative to traditional banks.
The crypto community showed unprecedented strength in responding to regulatory threats, with intense lobbying efforts through phone calls, emails, and tweets. The proposed amendment to the infrastructure bill aimed to target decentralized finance (DeFi) and non-custodial market actors, which some believe was orchestrated by the Treasury Department. The departure of Brian Brooks as CEO of Binance US adds to the ongoing regulatory squeeze on the crypto industry, particularly centralized exchanges. Circle's intention to become a fully collateralized national commercial bank marks a significant shift in the crypto space, potentially offering a more attractive alternative to traditional banks for crypto enthusiasts. Despite these developments, the regulatory landscape for crypto continues to evolve, and the community remains engaged in advocating for their interests.
Reflections on the Evolution of DeFi: Community Building, Innovation, and Regulation: DeFi's evolution includes community building, innovation, and regulation. While some strive for complete banklessness, others use third-party services. The anniversary of Yams marked a significant moment in DeFi history, and creators like Robert Leshner and Eric Connor shared their perspectives on its impact.
While the desire to be completely bankless is a common goal in the crypto community, it's not a reality for everyone. The use of third-party services that utilize DeFi rails is still an option for those who prefer not to manage their funds themselves. Additionally, the anniversary of Yams was mentioned, marking a significant moment in DeFi history when the concept of community building and yield farming gained widespread attention. Robert Leshner, the creator of Compound, shared his memories of the day Yams went live, describing it as a wild and memorable experience that kicked off the food coin mania and left a lasting impact on DeFi. Eric Connor's perspective was also shared, emphasizing the need for the crypto community to accept and coordinate with regulation as it becomes more commonplace in the industry. Overall, the discussion highlighted the evolution of DeFi and the importance of community building, innovation, and regulation in shaping its future.
Understanding the Shifts in Crypto and NFT Space: The crypto and NFT industry is facing increased regulation and growth, driven by digital scarcity, meme economy, collective capitalism, metaverse, and mind body dissociation.
The crypto and NFT space is facing increased regulation and should be prepared for more in the future. This is a natural response from traditional institutions as the industry challenges deeply embedded systems. Zhu Zhu's perspective on buying NFTs is that they represent digital scarcity, meme economy, collective capitalism, metaverse, and mind body dissociation. Trading JPEGs or NFTs is a simple activity that has been happening for over a century, and the openness and collective capitalism aspect of digital collectibles add to their appeal. Eric Connor puts things into perspective by reminding us that gold, a traditional financial instrument, is just a rock, and people still trade it. The irony is that some find it strange to trade JPEGs, but gold, a physical asset, is just as susceptible to value transfer into digital assets. Overall, the crypto and NFT space is experiencing significant growth and change, and it's important to understand the underlying reasons for these shifts.
UBI and Crypto Intersection: Andrew Yang sees potential in using crypto rails for faster UBI distribution and NFTs demonstrate potential beyond JPEGs with projects like Paperclip DAO and the NFT Avatar Movement's growth in the metaverse.
Andrew Yang, a prominent figure in the universal basic income (UBI) movement, sees potential in the intersection of UBI and cryptocurrency, specifically on the crypto rails. Yang believes that this path could enable faster distribution of UBI to a larger population. Additionally, the NFT space is witnessing significant innovation beyond just profile picture mania. Projects like Paperclip DAO demonstrate the potential of NFTs for more than just trading JPEGs. The hosts, David and Anthony, are particularly excited about the NFT Avatar Movement, which they believe will continue to grow as the metaverse expands and people seek unique digital representations of themselves.
Discussing Ethereum's potential to surpass Bitcoin: Speakers express strong beliefs about Ethereum's potential to surpass Bitcoin, with the merge to proof-of-stake and issuance reduction being significant catalysts for this flippening. They also share their confidence in Ethereum's value proposition and personal missions to contribute to its growth.
The speakers in this discussion express strong beliefs about Ethereum's potential to surpass Bitcoin in value, with the merge to proof-of-stake and issuance reduction being significant catalysts for this flippening. They also share their confidence in Ethereum's value proposition and their personal missions to contribute to its growth. One speaker shares a meme depicting the Grim Reaper visiting various milestones in Ethereum's development, including its supposed death, the launch of Ethereum 2.0, and the flippening with Bitcoin. They believe the hype surrounding the merge could lead to Ethereum surpassing Bitcoin before this event occurs. Another speaker discusses their belief in Ethereum's superior value proposition compared to Bitcoin and their long-term mission to help Ethereum take the number one spot. They also mention the upcoming merge and its potential impact on Ethereum's issuance and deflationary nature. These conversations highlight the strong convictions and anticipation within the Ethereum community regarding its potential to surpass Bitcoin.
Exploring Ethereum's Potential and Staying Informed: Listen to The Daily Way for Ethereum news and insights, be aware of risks, and consider the potential for financial independence in the growing crypto community.
The speaker, who is a frequent guest on The Daily Way show, is a strong believer in the potential of the Ethereum network and the concept of the "flippening," where Ethereum surpasses Bitcoin in market capitalization. He encourages listeners to stay informed about Ethereum news through The Daily Way's YouTube channel and newsletter. The speaker also emphasizes the risks involved in investing in crypto and Ethereum specifically, but expresses excitement about the potential for financial independence and being part of the growing crypto community. The Bankless Weekly Roll Up is a resource for staying updated on the latest news and developments in the Ethereum ecosystem. The speaker also pokes fun at a colleague, Ryan, and invites listeners to check out Bankless HQ for more resources and information on crypto investing.
