Podcast Summary
Bitcoin ETFs, Ethereum ETF rumors: Bitcoin ETFs made a comeback and Ethereum ETF rumors gained momentum, contributing to a $2.77 trillion crypto market cap and impressive growth for layer twos like Arbitrum and Base
The crypto market saw significant developments this week with the Bitcoin ETFs making a comeback and the Ethereum ETF rumors gaining momentum. The total crypto market cap reached $2.77 trillion, and layer twos, particularly Arbitrum and Base, continued to show impressive growth. Arbitrum even surpassed $20 billion in total value locked, leaving other layer twos in its wake. Additionally, Uniswap volume on Arbitrum doubled compared to the previous year, highlighting the potential of layer twos to attract more businesses and users. The veto of the sad bill by President Biden also kept the crypto community guessing about the future of Democratic support for crypto-related legislation. Overall, the crypto market showed signs of resilience and innovation, with healthy businesses being birthed on the value-added reselling of Ethereum block space.
Ethereum fees and TVL: Ethereum dominates fees on layer one and layer twos, with fees under a cent. TVL in DeFi protocols like Eigenlayer, EthereFi, and Pendle surpassed Uniswap, driven by high yields. Binance Coin reached an all-time high, making it the fourth-largest cryptocurrency, while rate cuts by central banks could impact the crypto market.
Ethereum remains the leader in generating fees, both on its layer one and on layer twos like Optimistic Rollups and Zero-Knowledge Rollups. Fees on these layer twos are under a cent, making Ethereum an attractive option for transactions. Despite Ethereum's recent inflationary trend, the demand for layer two block space is increasing, leading to less demand for layer one block space. Another notable milestone is the surge in Total Value Locked (TVL) in decentralized finance (DeFi) protocols like Eigenlayer, EthereFi, and Pendle, which have surpassed Uniswap in TVL. This trend is driven by the high yields offered by these platforms, making them popular among investors. The Uniswap ecosystem is expected to see a resurgence in TVL due to emerging protocols like Sorela Labs, which aim to make it more profitable for liquidity providers. Additionally, the Binance Coin (BNB) token has reached an all-time high, making it the fourth-largest cryptocurrency by market capitalization, surpassing Solana. Central banks, including the Bank of Canada and the European Central Bank, have announced rate cuts, which could potentially impact the crypto market.
Central bank rate cuts, investor actions: Central banks cutting rates may signal larger cycle, while individual investor actions like significant stock purchases can significantly impact prices, as seen with Nvidia and GameStop
Central banks around the world are starting to lower interest rates, which could signal the beginning of a larger rate cut cycle and potentially a pivot from the Federal Reserve. Meanwhile, in the stock market, notable companies like Nvidia continue to perform well, with its CEO's recent signature causing a significant increase in the price of the stock. Additionally, Roaring Kitty, a prominent investor, has recently re-entered the market with a large position in GameStop, causing a surge in the stock price and renewed debate about market manipulation. In the world of cryptocurrency, demand for Ethereum ETFs is on the rise, and there are updates on the status of Bitcoin ETFs. Transporter, a token bridging app, offers a secure and simple way to move assets across different blockchains. These developments highlight the ongoing dynamics in various markets and the potential impact of central bank decisions and individual investor actions.
Cello growth, Layer 2 transition: Mobile-first blockchain Cello is growing rapidly with real-world use cases and partnerships, planning to transition to Layer 2 solution Optimism's OP stack for lower gas fees and wider access to crypto transactions. Bitcoin ETF inflows boost price, Ethereum ETF approval imminent but may face regulatory delays.
Cello, a mobile-first, EVM-compatible blockchain, is experiencing significant growth with real-world use cases and partnerships. Its community-governed protocol aims to leverage Optimism's OP stack, transitioning to a Layer 2 solution, which could lead to lower gas fees and more accessible crypto transactions. The Bitcoin ETF has also seen substantial inflows, contributing to its price surge, and the Ethereum ETF is anticipated to follow suit, with positive signs of imminent approval, although potential delays may occur due to regulatory considerations.
Crypto Regulations: Regulatory scrutiny and challenges are impacting the crypto markets, specifically DeFi projects and exchanges, due to lack of transparency and potential fraudulent activities. The SEC is pushing for proper disclosures and regulations to protect investors and prevent manipulation. Ethereum's price could be influenced by inflows and potential regulatory changes.
The crypto markets, specifically decentralized finance (DeFi) projects and exchanges, are facing regulatory scrutiny and challenges due to lack of transparency and potential fraudulent activities. Gary Gensler, the Chair of the Securities and Exchange Commission (SEC), has expressed concerns over the need for proper disclosures and regulations to protect investors and prevent manipulation. Exchanges like FTX have been accused of trading against their customers, leading to bankruptcies and legal issues for some of the industry's leading figures. The demand for Ethereum-based ETFs is predicted to be lower than Bitcoin's due to differences in market conditions and regulatory frameworks. However, inflows into Ethereum could still significantly impact its price, potentially driving it to $5,294 by the end of 2024. VANX, a research firm, has a more optimistic long-term outlook, predicting Ethereum to reach $154,000 by 2030. Overall, the crypto market is experiencing regulatory uncertainty and potential growth, with Ethereum showing potential for significant price appreciation in the future.
Crypto Industry Developments: Despite legislative setbacks and challenges, the crypto industry continues to grow, with new technologies, advocacy groups, and bullish market goals.
The crypto industry is experiencing significant developments and legislative actions, with the veto of SAB 121 by President Biden being a notable setback. However, the industry continues to grow, with the Stand With Crypto advocacy group attracting over 1 million members and meme coins serving as accurate prediction markets for real-life events. The industry also sees advancements in technology, such as Vitalik's involvement in the celebrity coin wars and Starkware's expansion to Bitcoin with a ZK roll-up. Coinbase also introduced a new fancy wallet aiming to onboard billions. Despite the challenges, the crypto industry remains bullish, with a potential $20 trillion market cap and Ethereum reaching $154,000 being the long-term goal.
Web3 innovations and acquisitions: Cartesi provides scalable solutions for developers to push Web3 boundaries while Robinhood's Bitstamp acquisition expands their crypto program, potentially reorganizing the financial system. Meme coins vs utility coins debate continues, with innovations like Coinbase's smart wallet onboarding next billion users.
For developers looking to push the boundaries of what's possible in Web3, Cartesi offers powerful and scalable solutions with access to rich code libraries and open source tooling. Meanwhile, Robinhood's acquisition of Bitstamp marks a significant expansion of their crypto program, potentially doubling down on their vision of reorganizing the financial system with crypto. In the world of celebrity culture, the debate continues over the value of meme coins versus those with utility. Vitalik's critique of financialization as an end goal sparked a conversation, with Hayden Adams defending the importance of positive social change in the space. Amidst these discussions, builders continue to innovate, with Coinbase's introduction of a smart wallet aimed at onboarding the next billion users into crypto.
Password managers and Bitcoin security: Password managers offer a secure alternative to traditional seed phrases for securing digital assets like Bitcoin, while Starkware's ZK roll-ups bring more expressive capabilities to Bitcoin, potentially leading to increased institutional adoption of crypto and tokenization.
Password managers, including those offered by companies like Apple and Coinbase, are essential for securing digital assets, including cryptocurrencies, as they provide a more accessible and secure alternative to traditional seed phrases. Starkware's announcement of bringing ZK roll-ups to Bitcoin is a significant development, as it allows Bitcoin enthusiasts to build on their original love for the cryptocurrency while also leveraging the more expressive and powerful foundation of Ethereum. Additionally, the launch of a rival stock exchange by BlackRock and Citadel, which may operate on an Ethereum L2, could signal increased institutional adoption of crypto and tokenization. Overall, these developments represent exciting advancements in the crypto space and underscore the potential for greater accessibility, security, and decentralization in financial systems.
ETH ETF approval timeline: Despite anticipation, there's skepticism about the ETH ETF approval timeline, with some predicting it may take longer. David is preparing a pitch against an ETF, while Ryan is ready to present Ether as an asset.
The discussion revolved around the anticipation of an ETH ETF approval, with some skepticism expressed towards a potential timeline. David shared his view that it may take more time, while Ryan was ready to pitch Ether as an asset. They agreed to present their pitches the following week, but David requested more time to prepare. Mountain Protocol was introduced as a tokenized treasury that has raised $8 million and is seen as a potential alternative to stablecoins. The debate between the two hosts about their pitch and the stakes of their bet was also a part of the conversation. The meme of the week featured a meme of David poking the stick at the ETFs, predicting an approval by early July. It's important to note that investing in crypto, including ETH, carries risk and it may not be suitable for everyone.
