📺 ROLLUP: ETH & BTC ATH's | NFT's | Andrew Yang | Bitwise DeFi Index | Reflexer launches RAI

hey everyone it's the third week of february happy friday morning david what are we doing today we're rolling up the third week of february the crypto world moves so incredibly fast and so ryan and i go through a week's worth of news as fast as possible so get that coffee ready because we're coming at you hot here's what we do we always talk about the markets what are the markets saying then we get into releases what got released in the last week then we go into news what happened in the news cycle lastly we finish up with some ecosystem ecosystem takes who had some good

opinions in the world of crypto in the last week and then we finish with what ryan and david are excited about and then of course the meme of the week the meme of the week is a new feature super excited to get there it's like the dessert at the end of a fantastic meal david are you ready to roll him up we're rolling it up let's do it all right david before we get into the roll-ups we should tell our audience what a lattice is these are really cool devices you've got one sitting over there right yeah it's a new hardware wallet it's a different kind of hardware wallet it's not a mobile one it's one that kind of

feels a little bit similar to your amazon alexa your google home you leave it at home and it's got a big screen for you to digest the uh transactions that you are about to approve uh it's the kind of a new standard in security uh and i've been having a fun a lot of fun just playing with it it's pretty cool yeah lattice wanted us to let you know that they are back in stock for the bankless nation so we will include a link in the show notes if you want to pick up a shiny new lattice wallet they are back in stock all right david you're ready to get to markets let's do it there's so

much is happening in the markets that's for sure always always and forever let's start with the bitcoin market what is going on with bitcoin did we just hit another all-time high my friend you know once again i i actually can't remember the last time we've done one of these where crypto hasn't hit all-time highs uh but yeah bitcoin 20 52 000 crossed the 50 000 mark after flirting with just being under it right after elon musk announced the tesla 1.5 billion dollars purchase of bitcoin uh bitcoin shot up to like forty eight thousand dollars and

then it hovered there all of last week and now this week we're finally cross over that fifty thousand dollar mark so congratulations to bitcoin for breaking fifty thousand dollars that is a milestone 50k per bitcoin pretty impressive what's eth doing this week david ether is 1933 dollars i the way this is going i expect it to be higher by the end of this recording so we will see yeah by tomorrow morning when you're listening to this it may have hit 2k it may have hit 1800 who knows there's a

lot of variability here but it is on a tear i wouldn't be surprised if we're 2k by tomorrow morning when you're listening to this we will just see eath has been an absolute tear as well so has total locked value in d5 it is up again hitting all-time highs what number is locked in d5 now 42 billion dollars locked in defy last one we recorded it was right under 40 billion dollars so in the last week we've piled on two extra billion locked in defy and of course the dpi is up to

430 dollars i remember when we started recording this ryan dpi was like at 80 or something when we started doing the weekly roll up so dpi has been on an absolute tear it is down a little bit on the week though which is interesting and i think this uh this kind of reflects in a ratio that we've been tracking on the roll-up that it you know indicates the seasonality we are in in crypto and this is the dpi to eat ratio do you want to talk about this ratio why it's important and what we're looking at this week yeah dpi of course is the index for d5 the

top 10 defy assets and i've been paying attention to the eth dpi ratio because it's a it's a stronger signal in my opinion than the dpi to us dollar price because you know the dollar's inflationary highly inflationary and really ether and bitcoin are the new benchmarks and so especially with ether and ethereum dpi price versus ether really indicates how uh how risk on people are being how far down the market cap stack people are looking at and there was a pretty strong retracement in

dpi versus ether in the last week and so it hit a it hit a high of 0.26 dpi per ether and now we are down to 0.225 um so but overall dpi is performing really really strongly versus ether but taking a little bit a bit of a retrace lately yeah it's interesting because it's not like dpi is necessarily weak it's been you know relatively consistent versus last week but it's just that ethan's been on a tear which which means uh that the dpi to eat ratio

obviously goes down in those types of conditions um let's talk about bitcoin on ethereum this tweet by josh stark who noticed that our there are 173 000 bitcoin on ethereum right now that number is also up and he also takes us in this tweet uh where he kind of compares it to total bitcoin supply that's almost one percent 1.1 of all outstanding bitcoin is now on ethereum which is absolutely huge and if you compare it to sort of the uh more uh

bitcoin-centric bitcoin maxillas maybe i might say uh scaling solutions like block streams liquid uh it's there's 63 times more bitcoin on ethereum than block streams liquid and there's 158 times more bitcoin on ethereum than there is on the lightning network now what do you make of this yeah first off this is something that fits in the ethereum ethereum native uh narrative excuse me is that like ethereum is this nexus of economic activity it's a it's a black hole of

assets assets are more useful on ethereum there's bitcoin and then there's bitcoin on ethereum and bitcoin on ethereum is straight up more useful than bitcoin on bitcoin right so there's this natural gravitational pull to pull assets into ethereum and like lightning is just not really doing the things that people that bitcoiners really wanted it to be doing and i think there's a very strong case that uh all of the use cases of lightning are going to actually be facilitated by bitcoin on ethereum's l2s like perhaps

loop ring loopering is fast instant payments trustless payments in the same way that lightning promised that but i think that wrapped bitcoin on ethereum is actually going to facilitate some of the same demand for bitcoin on the lightning network so lightning is based on state channel technology it's interesting to me david that state channels didn't really take off on ethereum either right and they're they're not taking off on bitcoin unfortunately for ethereum there are other layer two approaches available on ethereum we're talking about one in the podcast that comes out on monday morning which is roll-ups primarily um but um

you know bitcoin has only had sort of this this one bullet in the chamber which is lightning and it's not sucking in a lot of bitcoin right now the crypto banks certainly are ethereum certainly is but not lightning all right david let's talk about miners for a second eth miners are making bank right now it's insane they made a total of eight 830 million in january dude and 40 of that was fee revenue right so again

miners make revenue on any blockchain including ethereum or bitcoin in two ways one is uh issuance so they get a reward based in ether every time they mine a block successfully so that's issuance reward and they also make fees on the gas that you pay or the transaction costs that you pay on the bitcoin network these two fee structures combine to form the total miner revenue and what's amazing here is now transaction fees compose 40 of total miner revenue on ethereum so

what do you make of these high numbers and that proportion of uh fees being minor being transaction fee revenue yeah this is just a very strong signal as to what the longevity of ethereum could be right the way that you understand a blockchain to be able to live long into the future is demand for block space and ryan if you click on that image it'll blow it up a little bit bigger look at that bar on the right that that red part on top of the blue part that's the fee revenue and the blue part is the

issuance right they're almost equal they're almost equal in fee revenue to issuance and what that tells us is that uh if you take that fee revenue side of that that bar chart it's larger than all of the revenue that miners made in like the bear market for for almost an entire year like the fees that miners made in the last couple months match the entire fee the entire issuance and fees that they got in like 2018 and 2019. and this is really important this is super super important and the reason why is because

if your blockchain can collect fees if the validators can collect fees you don't have to issue as much currency to fund security that means that your asset will be having less issuance which means your asset will be more scarce will be more hard the more fees that are collected the less you have to issue and so the whole narrative around like this this bitcoin hard cap is still thrown into question because we do not see this

same minor revenue from fees in the bitcoin network the whole narrative around bitcoin is that at some point issuance will be replaced by fees yet we are already seeing this in the ethereum blockchain we are seeing a 40 out of the 100 of total revenue 40 of that is fees paid to miners in ether i don't know what the bitcoin fee percentage is i think the last time i checked it was like 10 to 15 but ether ether and ethereum is already out competing bitcoin in long-term

sustainability ethers ultrasound money it's so ultrasound we're gonna talk we gotta i wanna talk two things about this too david just said to add on to what you're saying it is the case that if all of the bitcoin were issued as is the plan right and let's say all of the ether were issued that ethereum would be a higher security network than bitcoin today if they were both based on just transaction fee revenue which means ethereum's blocks are more valuable than

bitcoin's blocks which is interesting because bitcoin is the one switching to 100 transaction fee revenue which is not its strength its strength is a meme store of value its strength is not the value of its block space and its network so it's kind of switching from its strength to its weakness in its issuance policy and again issuance policy is also security policy so these are trade-offs that uh you know people often confuse the other thing i wanted to say is all of this this red

section that you're pointing uh at on on the graph guess what happens to this red section guys eip1559s means it starts to to go to holders this red section a large proportion of it starts to get burnt when eip1559 is active which means it actually decreases the ether supply so i don't know how much we're looking at here david but like 829 million right in january 39 of those were fees let's say it's like 300

million or so something to that effect um the large proportion of that would be burnt under eip 1559 say 200 million 250 million of fee burns that's a de-inflationary pressure on ether and the scarcity of eth so this chart is well gas fees suck right like it is long-term very bullish for the health and security and the product market fit of the ethereum blockchain for all the visual learners out there

and for those on the podcast you should check out the youtube because there are plenty of things to to look at take that red section and then take that an equal amount of the size of that red section and like delete it from the blue section right and so like all of that red feels that you're seeing you can actually remove the issuance right and so if you remove the red part from the blue part that is actually the issuance of ether and the if the red part continues to go up and up and up the blue part will continue to go down and down and down under an eip1559 paradigm

and just like that this whole roll-up turned into an eip-1559 episode yeah we could go on for 10 or 15 more minutes about this david but we've got to move on it's so cool it is awesome revolutionary part about this whole entire industry right now yeah and it's so underrated like most people don't understand this this is not the popular main street narrative this is the stuff that like you're hearing from bank list because you know people in the bank list computer are actually looking at this stuff anyway we've got to move on this is a really cool chart david this is companies by market cap

dot market cap yes so this section is banks by market cap so um you can look at all total fortune 500 all the biggest companies in the world you can also just narrow it in by banks and what i love about this is if you rank all of the banks in the world and compare that to these new crypto banks bitcoin and ethereum uh bitcoin ranks number one it is now the biggest i guess money bank type system transaction system by market cap so it beats jp morgan chase it beats

bank of america it beats icbc uh and ethereum is number of five in this four number four versus the banks five if you include include bitcoin exactly so it is number number four versus the banks maybe we'll focus on that so it has a ways to grow to beat jp morgan chase uh david but if it doubles if we're if we're seeing ether you know 3000 if we're seeing youth at 4 000 per eth then it becomes the biggest

banking system by market cap in the world so what this tells me is that ethan is is climbing right up the banks uh to to the banks in terms of value but it's still also undervalued right like if you compare jpmorgan chase which is 440 market cap billion market cap versus ethereum right now which is a 221 billion market cap what's more valuable the credibly neutral money system for the entire planet backed by a reserve asset store of value money or boring old

jp morgan chase i guess that's for investors to decide right and ethereum like banking services is just one of ethereum's possibilities right that's just one thing it can do it can also do like nfts and art and gaming like in all the other things like just banking is is selling ethereum short it has a multitude of possibilities and it's still just half the market cap of jpmorgan all right david the last thing we should explore in a market section is this chart which is really exciting to me as kind of a bankless maximalist as i know

you and i are and a decentralization maximalist so this is from glassnode.com they put together fantastic metrics on this that i haven't seen anywhere else and this is a charting on ethereum the percent balance balance of each supply that's on exchanges right now and you can see this this chart over time versus uh it's compared this is that's the blue line here is the percent balance of each supply on exchanges and the gray line here is uh ether price

and you can kind of see it ebb and flow but the good news is um the balance of ether on exchanges is going down and what that means is it's going to to other places essentially primarily back to the ethereum network primarily back to back to people's wallets back to the decentralized finance back to being bankless out of crypto banks and right now um there was at kind of the the early stages i guess of this this bull run or about a year ago or so about 17

of all ether supply on crypto exchanges and now there's 13 and it's continuing to drop this is really good for the bankless revolution because we want cons smart contract custody as much as possible we want self custody as much as possible we want a self-sovereign monetary system we want decentralization so this to me is a really bullish uh stat david what's your take yeah it's also doubly important for ethereum versus bitcoin to not have too much ether on exchanges because ether is

a staking token right and so we want people to be staking themselves either through a decentralized service provider or just doing it at home too much ether on exchanges is less than ideal that means there's a lot of consensus by exchanges and while there are reasons to why that's that's not the end of the world it's still better if people are staking their ether at home and ether having this exodus from exchanges is good for that and it's also good for the price it's both a symptom of increasing price because when people buy ether they remove it from exchanges and

then also there's less ether on exchanges to be bought right and so any further buying pressure increases the ether price at a faster rate the less and less ether price there is on exchanges i think you would you can note that the the lowest ether percentage on exchanges there's ever been was at the previous all-time high in 2017 uh when or just in january of 2018 when when eth had peaked out at the last uh last point in that cycle and so eth continuing to leave exchanges is just

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and sign up to get your monolith visa card today all right david we're back with releases we gotta start with this one i think this is big news people so that is the the the artist mainstream artist who sold millions of dollars in nfts in december now beeple art is bringing the nft revolution to christie's christie's is an auction house david have you heard of christie's before not at all i have no idea okay so like i don't i don't know much about the um kind of the the

art scene i don't buy a lot of art myself you know when i do it's like nft form but christie's i believe is an auction house where a ton of the most popular art is is auctioned off so this is how like art collectors uh in the real world buy art and equity for art this is liquidity for art in an auction style because every nft is different so these are non-fungible sort of you know collectibles of course uh they can't just trade them on an exchange so they

typically auction them off and they do so at christie's well an nft is being auctioned off at christie's for the first time wow i'd love to be able to fly on a wall during that process like like these art collectors are getting educated in nfts in ethereum this is like you've talked so often david about um ethereum having a ton of surface area particularly this bull cycle to to collect uh mainstream interest and nfts are a big part of that surface area and

now we're at christie's auction house with some of the most wealthy people in the world educating them about nfts that's big yeah yeah that's absolutely huge again like i would love to watch i don't know who these people that attend christie's would be but i would imagine that they are older in their lifespan because that's kind of the cohort of people that engages with art it's people that have had time to accumulate the wealth uh and so i would be interested to see like what how do you even display our like an nft art at christie's like are they

bringing are they like wheeling a tv onto the stage to show the uh to show the art i don't know but uh congratulations to people for all just being a fantastic pioneer with the nft space uh and this is just extremely legitimizing nfts are really they've been having a moment but especially in the last like one to two weeks they've really started to just rocket ship into the mainstream uh mindshare yeah and it's cool because people's kind of a like an apostle of this because he both loves nfts and he loves kind of decentralization and and um

and everything that's going on in d5 but this is not the only reason he he's in it to make money like there's a tremendous amount of economic opportunity here and at the end of the day that's what's going to draw the world into crypto is the economic activity in this this new land of infinite white space that that can be had here and that's exactly what's happening like billions of dollars billions of dollars of economic activity is going to draw the world into here um speaking of which let's talk about the first bitcoin etf in north america

that's that's the headline speaking of which speaking of which but this is this is in canada it's not in the us yet um but i think it's still a big deal ontario securities regulator approved you would think it's a big deal mr canadian but i don't know if bankless solicitors know that i am uh i'm canadian and american i get my dual citizenship so i snuck this headline in because i'm you know canadian nationalist here um anyway i think this is big news and it's

interesting i mean u.s regulators have got to catch up to other jurisdictions do they not this is this is a race this is an absolutely a race uh and the the most crypto friendly jurisdictions are going to be rewarded for this uh and i would always say canada is generally a little bit ahead of the curve when it comes to stuff generally just stuff uh and this this is a an indication of that yeah absolutely so it's good news hopefully an nf an nft an etf is on the horizon in the u.s as well

um david let's talk about rye this is a we we i talked about this a little bit at the end of rollups is something i was excited about these new kind of money primitives algorithmic almost money primitives that were coming to ethereum and then uh here's one of them what is rye it's it's been released it's now live what is it yeah rye is a crypto native form of stability right and so rye for those that don't know rye stones are these very ancient uh like massively like

massive stone discs that were used in like this island i don't know where i've got a picture oh yeah yeah it's a and it's a lesson about money right and so these things were a very early primitive form of money for these guys these uh people that lived on the island uh and so they if you go and like many many bitcoin podcasts and like history of money podcasts like use these rye stones as an example of how money forms and so because it's like a ledger right like each delegates represent no one moves them but uh they trade ownership of them as if as if it's

a ledger of some sort and that's how their money system worked on this island right yeah and so i i think that's actually the only similarity between rye and rye stones and this dry project is just a name but what's really cool about this rye project is that it is self-referential stability right and so the the fantastic thing about maker dow is that it produces dye and dies worth one dollar the shitty thing about that is that the dollar sucks right the dollar is just exporting the the brand of the dollar into d5 right rye is a

self-referential stability and so it's it's a little a little bit nuanced and it's kind of not really the right time in roll-ups to really explain how self-referential stability works but understand that it is a is a native native peg that doesn't need the currency an external reference point to become stable it's stable to itself uh and so this is about self-sovereignty this is about escaping the dollar and creating our own native forms of stability inside of ethereum right and the best part about this is that it's in

it's also very similar to maker dow except one of the biggest differences exactly is that it's governance minimize where maker dao is very happy to have governance that's part of the the maker dao protocol what that leaves is that there is a potential for a governance minimized version of stability and this is what rai is uh one of my friends amin solemani is is part of this and also uh stefan who was actually the first to meet the nation that we ever did um for those that want to go back and learn about dai that's a great resource um and

amin did this fantastic article which and his writing is really really good so definitely go check it out and he talks about the concept of like a new money god he rai is like this new money god and what amin is really talking about is a self perpetuating defy protocol that doesn't have human control a la a uniswap right a uniswap where uh at least with unisop v1 where there was no governance and it just perpetuated and because it required no external human dependencies no

external human actions this thing can just perpetuate in the same way that bitcoin just perpetuates there's no external dependencies for bitcoin it just continues and so amin calls this like a money god because as soon as it's turned on the theory is the hope is is that it can't be turned off and it's all of a sudden here for the rest of time so long as aetherium exists so i'm very optimistic about the future of rye yeah it's super cool and it's all based on eth right so all of the collateral is eth only so that it's what gives it its its censorship

incredibly neutral uh properties you know the other interesting thing about this david is like we this theme we talk about so often on bankless is that every experiment that can be tried in d5 will be tried i remember there was kind of a fork in the road for the maker project there were kind of two directions it could pursue one was honestly it's this rye direction right where you just you know collateralize the entire thing by eath but you make some trade-offs in in some other areas and the other and maybe you don't uh peg it directly to the dollar anymore and

the other direction is the direction that that maker ended up taking which uh has ended up as like die is a is a is a great primitive stability primitive for ethereum and ford d5 but it also has a ton of centralized collateral like there's a ton of usdc and usdt backing it so it's not as pure so the cool thing about this is there's kind of like a fork in directions of the project maker took one direction and now here comes rye that's pursuing the other direction don't know if this experiment will work or not but we get to try it that is

awesome so we'll see what happens here it's a pretty cool new primitive david tell us about euler beats i don't know what this is but tell us about this yeah euler beats it's a new nft uh release kind of in the same way that hash masks got released and also crypto punks got released yulu beats is this new nft experiment and what's different about this is that it's mostly auditory it's a music it's it's not it there is a visual component but what's cool is if you click on one of these ryan though it's kind of like a record player and it'll

start to play if you go on to the website and this thing this graphic will start to rotate and there will be a music that is performed right by this this kind of like construction of a pattern right it's this automated thing uh it's kind of hard to explain so definitely go to the i'm i'm hearing the music now it's coming in my headset but no one else can hear this no one else can hear it but it's pretty cool and so each pattern has its own like musical orchestra to it it's musical notes and so what you are buying is the unique pattern that the music create is created out of these euler beats i think that's

phenomenal and i think there's a huge world of nft music uh musical pieces that i think is yet to be created like imagine the world where like somebody like rac who one of my favorite artists who's deep in the into the d5 world i think he might be a listener what's up what's up andre uh creates total like create songs and then have those songs become tokenized where you can only listen to the song if you own a token right there's so much design space that's possible here and i'm really excited to see the world of musical nfts

come about you know what's cool too as with people we didn't mention this but as with beeple these euler beats are all denominated in what david ether ether yep uh you put out this great great tweet earlier that art nft art is priced in eth that is the denomination of nft art right now even in christie's basically the way you buy that beeple art in the christie's auction is with eve it is denominated in eth this is an example of eth serving beyond the the