📺 ROLLUP: ETH CC Paris | BED Index | Elon Musk, Jack Dorsey, Cathie Wood & Bitcoin

thankless nation it is the third week of july david what time is it it is the friday weekly roll up at the special david in paris edition of the bankless weekly rollover and this is where we go through the weekly news of crypto which there always is a lot of so we go through the market what's happened in the market we go through what got released and then we hit what happened in the news cycle and then we finish up with what uh the ecosystem takes who has some interesting takes in the world of crypto we finish up with what david and

ryan are excited about and then we top things off with the meme of the week we might have a moment of zen at the end but at the moment i'm excited about this this this this is the the first weekly roll-up broadcasting from paris so uh pretty awesome man how is paris by the way i am absolutely exhausted but it's yeah it was the it was uh the rob ray for you out yeah ave rave yeah wore me out yeah i got home at like four in the morning last night oh man well thanks for doing the weekly roll up david i know the crypto community appreciates it all your hard

work and dedication david before we get in we should talk about the smart contract summit that's coming up i am psyched about this thing because it's basically a free defy conference that anyone can register for whether you're a developer you're not a developer you're just trying to learn about automated market makers layer two um mev oracles all of these subjects will be covered they'll be 200 plus d5 projects and founders and speakers lots of different panels lots of different sessions david you and i will be there

this will be a couple of days hopefully right after the deployment of eip 1559 so we are hosting a panel on eip 1559 and the progress just fantastic that this kind of a conference is being put out as a public good it is a smart contract summit you can find a link to it in the show notes make sure you grab a free ticket august 5th through the 7th oracles are really important to blockchains because they allow blockchains to connect to the rest of the world and so any type of application

always can have the oracle side of it right so oracles touch everything so every time we everything that ryan and i talk about there's always the oracle conversation right alongside with it which is why chain link is throwing a summit so it makes a ton of sense so see you guys there yeah they're a perfect aggregator for that all right david you ready to get into market stuff let's do it all right bitcoin market tell us what is going on in bitcoin world where'd we start where'd we end hey we so we dumped down below thirty thousand dollars which is a

scary number to break through and then we hopped right back above it so we are currently at the price of thirty one thousand seven hundred dollars we started the week a little bit higher but overall i would kind of call it a flat week a flat week like a dip into like the terror zone and then we didn't and then we didn't like that then we got right back out of it yeah below again it's just this this holding crab week crab season i can't even remember how long we've been here it's like one of those things where it's like we've been here for runs years purgatory season

yeah um but like under under 30k for bitcoin does not feel happy and under 2k for eth does not feel happy so tell us about eve because we're kind of we went way under 2k not way under but decently under 2k and now where are we yeah we found the a new bottom at around 17 30 in the middle of this week's 1730 started the week off right at about 1920-ish dollars and uh yesterday and this morning uh depending i'm in paris

france so depending on you know whatever that means for you uh we actually jumped above two thousand dollars so we jumped almost three hundred dollars which was a big move for ether especially inside of one week so definitely a volatile week and i think this might be on the kind of the hype of elon musk announcing that he owns ether um i kind of also think that like decently the market was ready to gobble up a lot of 1700 e so i kind of think this pump might have been under its own weight and then with the elon musk uh i own ether

announcement also just kind of added a little bit of momentum to that too yeah some people say there's like part of the reason we're in crab season is because there's really not a lot of sellers under 30k bitcoin under 2k eth right especially when you get to 1700 eth i'm not sure honestly but you really think that that hop up was due to the elon announcement in that elon conversation the timing was there certainly um but but like i said i think also ether just completely rejected like 1700 each like

i think that there are a lot of buyers at that level and one and to say to go on what you were saying the reason why we're in crop market is that there's a lot of buyers at like the 1700 level and like there's also turn they turn into sellers at like a really low level of like 2 200 2 300 that's when the buyers turn to the seller so like there's like a narrow band we got buyers at the floor but like sellers on the ceiling right i don't deal with any of that david i'm just a holder man just a simple lowly holder uh you know what uh

you're a buyer too i'm a buyer yeah i've been buying dollar cost average in guys that is the way to do it um i saw this on coinmetrics david i thought this was super interesting this is actually google searches for bitcoin keyword bitcoin google searches for keyword um ether uh ethereum actually and so what's really interesting is uh during this sort of bull cycle 2021 did you know bitcoin in google trends did not actually hit its all-time high search you can see this graph here it

hit all-time high search in 2018 the last full cycle which is interesting it's down of course from the all-time high so the all-time high was probably like uh april may or so for not the all-time high but the local high for the bitcoin search in google trends that that just means people are searching bitcoin as a as a keyword like there's buzz about it and it's going in the google search what's interesting about ethereum is all-time high was actually this bull market cycle you see the difference that's yeah it's twice as high as it was

in 2017. twice as high which is interesting now it's of course way down because you know people stopped searching i guess nfts snl you know ethereum whatever they were searching but um the fact that it got much higher sort of like the conclusion from coinmetrics is well does that indicate that ethereum has been more driven by retail this cycle whereas bitcoin has been more driven by institutions this cycle of course institutions don't have to google bitcoin there's fewer of them

they just have lots of money to pour into it i thought that was a really interesting takeaway and i was actually surprised that ethereum far exceeded its last all-time high in google trends in this in this bull cycle we'll see where this goes next even where we're at right now in in 2021 ethereum google search trends is actually like meaningfully higher than most of ethereum in 2017 and so that that's also interesting the other thought i had is back on the uh the bitcoin chart uh while bitcoin got like the all-time high

of uh search trends was was in 2017 look at the area under the curve which i think is like sustained google searching because uh the in 2017 it really looks like a flash in the pan it's like a spike but in 2021 it's like sustained bitcoin searching from for the last like year or so there's a lot of area under the curve for that so that's something to note as well the other thing i i note is like a everything's a fractal look at this early 2017 you had that spike up and then a waste bike down and the summer of

20 2017 no one we weren't searching for ethereum as much right kind of how we are today and then you got a huge spike you know uh october november december january february back again so maybe this is just a a local you know down this would be the theory that hey um after after this summer this is going to repeat similar to 2017 and the bull market shall resume we'll have to see how that plays out um all right let's talk about this david um

i i thought this little moon lambo tweet great name by the way great handle little moon well done uh was was very like if it felt right for this week um and he says this a year ago bitcoin was 11k and eth was 320. a year later everyone is panicking because bitcoin is 29k and eth is 1700. the lesson here is don't worry about the short-term price movements when you're in it for the long run when in doubt zoom out good reminder look man uh 29k a

bitcoin 1700 eth a year ago if you had told us at this date a year ago these would be the prices a year from now everyone would be excited everyone would be jubilant it would be considered a smashing success but human nature just just has this weird effect when you when you rise for like really fast really high and you're off those highs you feel like you've lost something we have not lost anything we are up on the year in a big way the fact that this tweet got over 5 5000 likes and the meat of this tweet is

using the word panicking it says he says a year later everyone is panicking that's just like a buy signal to me it's like yeah people are panicking everyone is liking and retweeting this tweet because they're all resonating with the word panicking uh and so like that's just a buy signal to me and i've been there there's been a number of uh people that uh have come into crypto that are in my my own circles my my non-crypto circles people from college from high school just friends uh and this they're they're they're unicyclers right this is their first cycle i keep on try trying

to convince them that the best thing for them that could ever happen to them is ether dipping really really hard like if you are bullish on ether you want the price to go down you want it to go low and this has been one of the most frustrating things with ether at like seventeen hundred dollars or two thousand hundred dollars because i was spoiled when i got into ether i was buying ether between like one and three hundred dollars and so now when i go to gemini and i make my purchases i'm like oh i only get this amount of ether these days with this as far as one

thousand dollars gets me one thousand dollars you should give me three ether now it's like one half of an ether like that's frustrating and so like i keep wanting ether to go down more and more and more so i can finish accumulating so this is your first cycle for you be okay with the number going down like that's when you get bullish yes be happy about it it's a buying opportunity um yeah i agree but it's really hard to get people to i mean these conversations didn't happen in 2019 2020 no one was interested in in crypto exactly when they should be

um yeah it's such a mind trap that way all right let's uh let's keep moving ether bitcoin ratio what's the ratio telling us this week david last week i was talking about how ether is starting the the btc ratio started dipping below 0.06 and that is starting to get into like the danger red territory but also kind of fitting with that trend of a higher low and that's exactly what happened we painted that floor at like .058 a couple days ago and then with the the jump in the markets yesterday we are now back to .062

which is a great number uh and like i've been saying the east btc ratio above 0.6 is a historical high and it's holding that level really really well in the midst of crab market bear season whatever so the fact that ether is holding that ratio versus bitcoin is is just indicative of i mean a straight up of crab season because it's not going anywhere but it's holding its ground in the midst of a testing time and i think that's really awesome look i do think that this is indicative of a um people aren't letting

go of the bull market right this thing could recover when this ratio starts to go like bull markets are to ether's benefit and if we're going to have a bull market and we've talked about this before but eath needs to go up the ratio uh needs to change in ether's direction and it's it's holding steady so it's not losing ground right now which is good to see let's talk about total lock to value in d5 that is also holding steady we're like 55 billion last week i think we're like 58 billion this week just hanging there

and ave dominance up about a percent and a half so congrats to ave for continuing to dominate uh let's talk about the dpi this is the death of a week index yeah the best indexes these are d5 tokens but it's down on the week why why down i i i guess the the pump was really focused on the l1 assets ether and bitcoin um some tokens have definitely like recovered since when ether dumped down to 1750 so did a lot of the tokens uh not as a strong recovery in the tokens but i'm gonna call it noise

elon does not own defy yet so maybe that's why but i do consider ether defy asset bitcoin too for that matter we'll talk about this later but we need to get elon musk to get into the bed get its fed well you should probably well we'll explain it later that might not make sense to you right now but we'll explain it later okay um this is interesting these were two contrasting headlines that uh we we picked out this week the first is this headline institutional demand for bitcoin evaporates as bitcoin struggles

below 31k this is from cointelegraph juxtapose that okay juxtaposed that with this headline from block works fidelity says this is a survey from fidelity 71 of institutional investors plan to buy crypto even amidst a major sell-off the majority of institutional investors surveyed by fidelity expect to hold or invest in the future super interesting institutional demand for bitcoin evaporates this one's saying institutionals are going all in the majority continue to buy and are

holding during this period what do you make of this contrast so here's some alpha that came straight out of ecc that it can speak directly to this uh and so i talked to two people that that have privileged information uh one of them is donnie from ave the other one is uh santiago from parify uh and it's tawny while i was interviewing him which is gonna be out on the podcast on monday so definitely tune into that uh i asked him about ave pro which is actually now going to be called ave arc it's the institutional version of ave it's like it's like the coinbase better name i like yeah me too uh and it's like it's

like coinbase treasury but for ave uh you know kind of white listed accounts you mean compound treasury yes that's what i meant that's what i meant um uh and so he said i asked him are you building this so that you can then take this to institutions or are you building this because of demand and he goes oh we need we have to build this because everyone all these institutions keep on asking for them and so there's institutional demand for ave arc and that is why they are building it rather than the inverse so that's really important to take away the other thing i was just talking to to um

santiago a pit from peripheral capital which is in line atlantic coffee casual conversation and he goes that you know uh institutions and and funds are hitting us up like every single day knocking on our door to ask questions about ether specifically ether and he said uh and we kind of like specifically ether specifically ether right and the train of thought was that like ether just has a lot of surface area for investments like funds they like they like the tech startup vibe of ether they like the the fact that there's products on ethereum rather than just bitcoin

which is which is just bitcoin so ether and ethereum has this product focused thing with all these cert this surface area for investments that makes them like ether the asset and so institutions knocking on the door to ask santiago who's a great brain he's one of the d5 panelists that we had so you should also be watching that video uh just saying that there is institutional demand for specifically ether yeah look look i i um i i tend to go where the data goes right like those stories are are definitely uh important

and so is fidelity saying send seven out of ten institutional investors hope to gain crypto exposure in the near future i think the juxtaposition of these headlines is what is just short run you know like you got to say something when uh you know price is going down uh and the other is like fidelity's been doing this survey for a while and they've been charting it over time and these numbers are up up up from the last time they did the survey so look the institutions are here uh it sounds like they're getting excited about ether it sounds like they're getting excited about defy uh i

don't think they're going anywhere this round this is a real asset class and the thing is it doesn't take a lot of institutions to meaningfully move the market and so that's why you should really still be optimistic there we go we are not we are not bullish today guy or we are not bearish today maybe maybe maybe we never are i don't know we are literally never bearish token terminal this is super cool it's hard to be it's hard to be bearish when you see stuff like this david we are literally seeing a new asset class being birthed um before our eyes caught this tweet from token terminal this is about

uniswap's past year okay we talk about the birth of a new capital asset something that has discounted cash flows that wall street can even value uh trading volume for uniswap over the past year 273 billion in trading volume with a b a little tiny protocol 15 people 273 billion dollars unicorn logo unicorn logo like weird like weird vibes simple interface like yeah definitely not wall street definitely not like banker uh you know friendly i

guess lp revenue 812 million that's how much liquidity providers made in this protocol unit swap revenue 130 million 16 percent of uh lp revenue the costs for for uniswap just 10 million in grants you can swap earnings then if you do the math there 100 uh 10 million minus 130 million 120 million what is the fully diluted market cap right now about 12 billion so what does that make the price to earnings ratio

102 102 price to earnings ratio if you benchmark that with other exchanges traditional exchanges you've got cme group that has a p e ratio of 40. you've got the ice exchange which is 30. you've got cboe which is 27. you've got nasdaq that's 28. super interesting that uniswap is being priced at a premium but not at an excessive price to earnings premium to these legacy exchanges that are barely growing right and you've got uniswap

which is uh just just crushing it in terms of growth so also i would argue like a fair market value based on price to earnings ratio uh maybe undervalued anyway it's super cool because we've been talking about the birth of a new of of defies as capital assets and here it is um it's happening we have the numbers we can do the analysis we can we can we can show the valuation here uh and uh man i'm just like i'm psyched about that and just one small asterisk and i'm pretty sure this is true is that uh the

token terminal tweet says uni revenue as 16 of lp revenue is 130 million dollars that's once the fee switch gets turned on so the fee switches five basis points of uh fees goes to the protocol uh and that would represent 16 of lp revenue and so that's where they get that number from yeah it's kind of like um you know facebook pre-revenue before they they put on they turned on all of their you know advertising models and that sort of thing so you see the growth you see the potential they just have to turn the switch and put it on but they haven't done that so it is also somewhat

pre-revenue that's a good asterix david all right man we are going to get to releases in just a minute but before we do we want to thank the sponsors that made this episode possible living a bankless life requires taking control of your own private keys not your keys not your crypto that's why so many in the bankless nation already have their ledger hardware wallets which makes proper private key management a breeze but the ledger ecosystem is more than just a secure hardware wallet ledger is the combination of the ledger hardware wallet and the ledger live app

and if you're used to seeing all of your crypto services and favorite d apps all in one place ledger is where you want to be not only does ledger let you buy crypto assets straight from the app but it also hooks into decentralized exchange aggregators like paraswap which makes sure that you are getting the best prices on your trades without your assets ever leaving your control defy never stops growing and the ledger live app grows alongside with it so click the link in the show notes to see all the defy apps that ledger live has and stay tuned as more and more apps come online

and if you don't have a ledger hardware wallet what are you even waiting for go to ledger.com grab your ledger download ledger live and get all of your dapps all in one place arbitrarum is an ethereum scaling solution that is going to completely change how we use defy if you've been using ethereum for the past 12 months you've probably noticed the high gas fees and the slow confirmation times that have been plaguing v5 too many people want to use ethereum and it doesn't have enough capacity for all of us that's where arbitrarum comes in arbitrary is a layer two to ethereum

which means arbitrary can increase ethereum's throughput by orders of magnitude at a fraction of the cost of what we are used to paying when interacting with arbitrary you can get the performance of a centralized exchange while tapping into ethereum's level of security and decentralization this is why people are calling this ethereum's broadband moment where we get to add performance onto decentralization and security if you're a developer and you want to save on gas costs and make an overall better experience for your users go to developer.offchainlabs.com to get

started building on arbitrom if you're a user keep an eye out for your favorite defy apps building on arbitrary arbitrary has been working with over 300 teams including ethereum's top infrastructure projects and will be opening up to all users shortly there are so many apps coming online to arbitrome so you may want to pack your bags in preparation for the great migration to the arbitrary layer 2. to keep up to speed with arbitrary follow them on twitter at arbitrom and join their discord all right guys we are back with the hot releases this week we got to start with

this one david it's finally here the bankless bed index jump into bed now you could say it what does that mean it means we're getting into bed we're all getting into bed together you the listener we're all getting into bed bankless bed index it's live wrapped ether wrapped btc and the d5 pulse index 33 each uh and that composes the bed index uh i think that this is going to be one of the best passive tokens that you can buy and uh the the advantage of buying it is a

multi-purpose um it's nice because it's all on ethereum so you don't have to own bitcoin on the bitcoin blockchain which uh you know don't tell us to a bitcoin but it's really cumbersome to do that just own it on ethereum uh and and now you can get that portfolio of ether the the store value of ether the store value of bitcoin and then the ethereum app layer in dpi extremely passive all in one asset tax advantaged uh very low streaming fees uh and uh bankless bed index brought to you by the bank list dow so nice job bankless dow yeah it's super exciting i mean this is basically the bankless thesis rolled up

into one single asset right because it's a bet on crypto monies and it's also a bet on uh d5 so it's a bet on the entire uh banking system that that is being created in in crypto so uh super exciting and what i love about this is um you could protect your friends from buying stupid crappy crypto assets and like fomoing into things and then selling other things too early and the way to protect them is like one click you buy bed and what do you get you get a taste of defy you get some

bitcoin which you need you get some ether which you also need and it's all bundled up into one asset right so this is like an etf except it's tokenized and all you have to do is own that so i'm super excited that the tools are available to make a product like this it's also a cool story that the bankless dao actually collaborated with index co-op dow to dao to bring this to market and to launch this thing so save your friends one quick one click like no hassle just get

crypto exposure set it and forget it sleep well at night uh get in bed that's all you have to do yeah and i think now that this is out the door and actually on ethereum the next step is to turn this into collateral uh and so uh the the next steps is for the bankless dow to go reach out to ave reach out to compound submit uh collateral requests for these applications to turn bed into collateral you know where i'd also like to see it right on fiat exchanges i'd like to see bed on coinbase i'd like to see cameron tyler get it on and get it on gemini

they will they need to see the liquidity he's already close to 650 uh thousand that is a high number right out of the gate not bad all right who else is releasing things sushi swap is releasing things trident i think they released this at east cc so were you there for the announcement do you see this what's kind of what what is this thing what is the buzz yeah i i followed up with joseph de long who was the person that announced this at east uh at ucc uh and so this is actually an a a one of the reasons why sushi swap was

always different from uniswap to begin with is that sushi swap is not uniswap it's not just a fork of una swap v2 it is a dao that it can do anything it wants to do so it doesn't have to follow the progression of una swapping it can take its own path and so what sushi has done is they have built out a suite of new products that are completely independent from the original you know a fork of unit swap v2 and so they they have these uh concentrated liquidity pools which is kind of what unisoft v3 is doing but they also have weighted pools which is kind of like what balancer is doing and they got hybrid

pools which is kind of what what curve is doing that is specifically good for trading like kind assets they also have this bento box application and so what you what applications can uh do is they can build on top of of sushi swap and they can deposit uh assets into suicide swap and then sushi swab credits those applications with those deposits but then it goes and gets yield and defy with those assets while they are also getting liquidity in in the amm and so

it's just a collection of a bunch of the really cool products that we've all been using but now it's all collapsed and condensed into the sushi swap protocol so uh really really bullish for sushi that's a really cool step into a brand new direction uh and it's always just one of the the one of the if you buy and are bullish on sushi token you're really bullish on their ability to build new build and ship new products which they have been proven out to do um joseph de long has been in a twitter a fun like friend twitter is this fun dude is this fun because i i

saw this why don't you read the tweet it's pretty fun uh and so dan robinson who is at paradigm and basically built unit swap v3 and joseph de long who is one of the lead devs behind sushi uh they've been having like a twitter war of sorts i don't know how how mean it is i kind of thought it was always like pretty it's frenemies for enemies like you know good good but also hard-hitting jabs uh at each other and so uh joseph de long on may 8th so this has been a while in the makings uh he's tweets out to dan

robinson i want you to watch me destroy the house you built on 7 20 21 which was eth cc and that was two days ago uh and so that was uh that was the announcement and so uh joseph you know fiery fiery tweets yeah it's kind of it's kind of funny to see the rivalry between you to swap and sushi swap i like it because it keeps them both on their toes to be honest david i think like even when we had hayden on the the um podcast he basically said yeah we saw what sushi was doing with their token we moved up plans to issue uni token that's been

super successful for uniswap so i like this little rivalry as long as it remains friendly we're all trying to build a decentralized financial system of course this was interesting to me i read uh in in the tweets part of this announcement david one existing piece of the road map coming post launch is franchise pools and these are designed to be compliant kyc aml uh require compliant with kyc aml requirements think ave's institutional lending pools somewhat interesting sort of buried in the announcement looks like sushi swap is

getting into this institutional defy theme as well that we've seen compound go down the road of and you just mentioned ave too so kind of cool team is team continues to ship um david you know you know what else i thought was cool this week was this graph uh was put together by cad labs the cad labs org team but this is like a graph of eip 1559 and the merge and you can basically model out based on different scenarios like

validator adoption or at what date the merge actually happens or how much eath is actually being burnt like the guay price on a given day an average you can actually model um issuance right and see where it gets into deflationary territory i thought this was super cool education material and people can actually like uh there's a github with this model inside of it so i encourage the team to like post this on

a website so that people can actually start tinkering with the dials not have to be developers right uh but pretty awesome that this is so close eip1559 and that um it's east issuance policy it's it's it's monetary uh policy is really getting i think cleaned up and solidified with this move and that's super exciting in this screenshot it looks like they have the dial set to a 100 grey gas environment uh and i remember during defy summer when when uh gas would get

down to a hundred gwai people would tweet out on twitter yo gas is below 100 great like do you all your things because that gas is so cute now we're in uh crab season and so gas is really low it's been between like 10 and 30. but even at 10 to 30 you're still deflationary and at a hundred if we ever get back to like a hundred for for gray on on the ethereum main chain ethereum isn't just like a little bit deflationary it's really really deflationary look how steep that curve is i mean granted this goes out to 2026 but like i mean i'm going to be around

in 2026. and the the target of hitting 100 million ether that looks like we could hit a a supply floor of a 100 million ether before 2030. that's crazy that's crazy somebody i know once said there is no supply floor in this new in this new paradigm it sounds like a really smart guy well i mean you look if you set the model right it's kind of when we had justin drake in the podcast like ether supply doesn't get above 120 billion very likely and could indeed