📺 ROLLUP: Venmo | Huge ETH Q1 | Canada ETF | Ampleforth Airdrop | Real World MakerDAO

good morning it is the fourth week of april this is your roll-up from bankless david how are you doing today absolutely fantastic it's a great day inside of a great week and we are going to go through all of the details about why this week was so great here on the bankless weekly roll up absolutely so we're gonna hit you with the market releases news some hot takes and then end with what we're excited about actually scratch that we're going to end with the meme of the week as we always do meme of the week gotta stay to the end to make sure you get the meme of the week of course this comes out every

friday morning enjoy it with your morning cup of coffee the fastest way to download the week that was crypto inside of your brains we do this as quickly as possible david we're gonna get in in one second but we have to mention it's badge week on bankless what happens on badge week badge week is where we give away a bunch of cool stuff to people that own bankless badges uh so if you are a premium member to the bankless newsletter you could have the bankless badge maybe you have one already and if you don't have one already you can go

get yours uh and so go into your email and look uh look for an email from lucas banklesshq.com talking about how to redeem a bankless badge and then go do that if you want to get a bankless badge but you are not yet a premium member become a premium member and then at the first of the month the first of may you will get an email to redeem your bankless badge which then you can get the bankless badge because the bankless badge is something that you want to own we're giving away baps these t-shirts that you see either me or ryan or sometimes both of us wearing every single weekly roll up as well as ether we are literally giving away ultra sound

money i can't believe we're about to do that yeah and that's just indicative of how badly we want you to get your bankless badge your badge is an nft of course that is minted and settled on the ethereum blockchain so so check that out we want everyone who is eligible to grab the badge there'll be some links in the show note to you okay david you ready to get into the markets let's do it this is going to be the biggest market collection i think we've ever done this week all right let's do it markets let's start with bitcoin as we always do how's bitcoin doing this week dude bitcoin is having some trouble bitcoin's having

some trouble in the last uh let's see in the last 20 hours there have been two pretty large volatile spikes downwards down below 52 000 and it just had one right before uh we started recording just now bitcoin is at fifty three thousand and three hundred dollars where it and it's been down below fifty two thousand dollars twice in the last day or so uh so really just kind of holding on to the bottom of the 50 50 000 level some performance anxiety for bitcoin

i've even seen some uh newsletter headlines or like news headlines coming out like oh is bitcoin going through sort of a mini bear market but that's that's part of the story i think the other part of the story is actually the rest of the market in crypto is doing okay it's kind of hot so what we're seeing here what i'm looking at here is um bitcoin dominance as a percentage of total crypto market cap explain this one for us yeah so bitcoin dominance is if you take all of crypto assets and you get an aggregate market cap of i think somewhere where are we if you scroll up

ryan where's that trillions my friends trillions multiple trillions multiple trillions yeah market cap and bitcoin is only right now at 54 of that it has been previously as high as uh almost 70 percent of all crypto market cap was just bitcoin and now we have gone from the recent local high of 70 down to uh 54 and falling and what this means is that people are moving down the market cap stack right

they're going risk on with crypto assets uh and and the bitcoin dominance has not been this low since 2018 and so we are back at 2018 levels of bitcoin dominance and this is this is traders like to refer to this as where an all-season indicator i know we don't like the term all-season it's not a very nuanced term but it's kind of just a way to categorize everything is that when when bitcoin dominance falls it because it's because people are working their way down the market cap stack and speculating on lower cap tokens

you know what i think dominance is going to fall further from here you know what what i'm often amazed at is over the long term how many things that um actually like people um get right i mean chris braninski basically predicted some of these macro cycles previously that every single cycle that we have bitcoin dominance is going to start at a um a lower high and then it's going to fall to a lower low from the previous cycle and if you look at this bitcoin dominance i mean it looks kind of like a version of

fractal version of what happened in 2017 where bitcoin dominance went all the way down to like 30 ish i wouldn't be surprised david if we see lower lows in this cycle we'll have to see how that plays out but um that's my anticipation that we're going to continue to see this trend 2021 is 2017 all over again right and bitcoin dominance really to me is like the bitcoin maximalist index do you believe that there's going to be one asset to rule them all or do you think

there's going to be a flourishing of many assets and part of my personal thesis about this base is that the erc20 token on ethereum democratizes access to making an asset just like the the gutenberg machine democratize access to printing newsletters uh the erc20 token on ethereum democratizes access to making assets happen and then we are seeing this with daos we're seeing this with defy apps everyone is issuing a governance token like i think there's going to be a flourishing of assets and that's going to really push down the

bitcoin dominance david do you know what a bitcoin maximus might say to this though is that this is like a a scam indicator basically yeah so when the market gets uh too hypey too hot too scammy bitcoin dominance tends to fall they're not what there's an element of that too uh as well there definitely are some projects that um are uh are very much vaporware that are pumping these days we'll get to that a little bit but let's talk about eth because it is doing something different

directionally than bitcoin in that it's going up yeah whereas bitcoin is testing local lows if ether is in its all-time high season and so we just recently as of today crossed over the 2600 mark we peaked out at roughly 6 000 or 2 650 took a little tumble in the last few hours down to 2 500 and now we are climbing back up to 2564 at the time of recording uh a nice performance by ether i expect

continuation our bic our ether bull podcast that we recorded in like mid december has uh has been holding up pretty well and if you recall from that podcast we had three ether bulls on that was during more sober time so i encourage you to go back in time and listen to those price predictions the low price prediction from eric connor was 2500 now we've passed eric's uh price prediction actually that was him predicting we had some other bulls on there who gave ranges i'm trying to recall i know

anthony 10k and i think uh dc said 20k so we're in that range now striking distance yeah well not not immediately striking the tracking distance we are now above eric connor's uh price prediction so one day does this make you worried i mean eric's pretty pretty predictive and he's definitely a eth bull and we're above his his price predictions for the high you worried about this so this is the theme that i've noticed so i i have three people in my life that are multi-cyclers where i and me me and anthony are just like one cycle

or one cycle people is that a unicycle are you know where you unicyclers um and one thing i've noticed is the longer you've been in the space the more quickly you are to sell on the way up in this last cycle and at that at some point that makes more sense you have more life-changing money sooner and so there's no you don't really need to wait for the top of the market like how the unit cyclers might want to do that uh and so like it's interesting the longer you've been in this base the more you are selling sooner with lower price targets uh and eric eric has been in

ethereum since day one and was in bitcoin before that and so that kind of makes sense that trajectory makes sense um but you got some fiat goals you hit them you're gonna sell yeah exactly but 2 500 ether is just complete bearishness in my mind all right we're going up from here so david says this is a chart we don't usually talk about on the roll-ups but i think it's worth talking about this time is the eth bitcoin ratio um and maybe we should take a look at this on five years for five years this is the so first of all the news here is

that it's up on the one year which means eth as a proportion of a bitcoin from a price perspective is going up so eth relative to bitcoin is up on two and one year x on the on the one year yeah and this is i don't often look at this ratio but it's hanging out at 0.04 right now of bitcoin on the five year though it's pretty low because we hit almost like within flipping distance of bitcoin's market cap back in 2017 we're still low from that but it's it's

the ratio is on the high like a two year or so high what do you make of this right and so a lot of traders are looking at the eth btc ratio because it is has made new highs in the same way that bitcoin has made new lows and bitcoin dominance since 2018 ether versus bitcoin is up new highs since bitcoin since 2018 and so that those are completely correlated uh and a lot of traders i know raoul paul recently tweeted out a tweet about his tweet yeah right how he just thinks that he is he stares at the btc chart and

sees um an enormous rounded bottom with potentially huge breakout just above and so what people are saying what people are looking at is the 2017 each btc ratio is where we might head to given an ether rally right in all in in bull markets people want tokens and all tokens are on ethereum and they need ether to do that and so the narrative is that people need to buy ether to play with the tokens this time's also different we also have the triple point asset thesis the ultrasound money thesis

eip1559 the merge proof of stake all happening in the next like 12 months or so and so there's definitely a growing amount of energy and momentum behind the eth btc ratio and right now as we are speaking the east btc ratio is pushing new highs again ever since 2018 we we have not been this high um since then so this means ether may be catching up to bitcoin's market cap it could also mean bitcoin going down as well while ether goes up which currently is happening right now

yeah yeah which is currently happening right now and we haven't seen that in a long time so this does feel like it is a different season of the market okay let's talk about um what's locked in d5 so total locked value in d5 that dipped to around like 55 million i believe oh excuse me billion now it's more recently bounced close to all-time high as anything here to talk about yeah i think all-time high is now 62 billion dollars we're currently sitting right below that uh so all-time high in in d5 pulse and

something that's new this week in the d5 pulse index that's really exploding on the scene is liquidity uh no excuse me liquidy which is a new uh stablecoin uh project that is in uh offers zero percent interest on your borrowed stable coins and the way that they do this is pretty interesting instead of paying like a uh like how maker dow charges a stability fee which is a normal interest rate that gets charged over time uh liquidity offers zero percent interest fees but they charge you they charge you a percentage of your deposits upon deposit and i believe also uh retrieval

i think of your of your assets i need to clear uh clear up my details is this like collateral backed or is this collateral backed lusd is the new stable coin so die competitor um l usd and there's already 10 percent of all the eth that is in locked in defy is in liquidity and this is a brand new uh project brand new protocol this stuff is awesome like we talked about ride before and now liquidy uh here what's cool about this is this is very fit it very much fits the thesis that we've had for a while around ether being economic

bandwidth for the rest of the ecosystem once you have a store of value that's trustless like ether on a network you can build other things on top of them like stable coins and that is exactly what's happening here so that thesis is playing out um all right let's talk about defy because it seems like we're moving into each season maybe right what's what's d5 pulse doing right now the dpi is how we track that that once again is some of the top 12 13 or so d5 tokens this is uh just tracking them

generally we're down a little bit so ethe up but well actually on the week where yeah no on the week we're down two yeah on the week we're down from a little over 550 dollars per dpi down to 480 dollars per dpi and i think that's because i think ether's very strong performance over the last two weeks is really scaring people who are perhaps overexposed to the app player and perhaps forgot about ultrasound money how dare you forget about ultrasound money and that's what ether is telling a dpi is like

perhaps perhaps ultrasound money is a place to be and you can definitely see this in the east dpi ratio as well okay well that's next uh it looks like ether is maybe sucking some of the oxygen out of the rim so this is the ratio that we look at on a weekly basis and that that ratio is down too right yeah it tr it did have a valiant effort for the last 10 days trying to hold that 0.2 uh ratio 0.2 eth per dpi but it has fallen down below that at 0.191 ether per dpi uh and perhaps it just

continues to fall there i i'm not again not a trader not financial advice but there will be a day where dpi versus eth rockets off of a floor it's just kind of a game of uh who wants to try and catch that knife uh who wants to play a little game of chicken but with a falling dpi ratio you know what's funny is we're not looking at some of the other assets in these in these ratios too right like so if you look at some of the the bnb pumps the binance chain pumps those are way up i think even relative to uh to defy tokens um and that's uh that that's not

taken into account here but it definitely seems like ether is taking some of the the value auction out of the room for other d5 assets while we have some of these binance pumps going on we'll talk about that in a minute but let's talk about some fundamentals of ether david because not only are we hitting all-time highs from a price perspective dude we're ether is crushing it uh the ethereum network and if ether as nasa is crushing it from a metrics perspective i'm going to just zip through four of these do this so

um settling more transactions in q1 ethereum has 1.5 trillion in transactions then all of 2020 combined so 1.5 trillion transactions ethereum has settled in the first quarter of this year and that is like 3x on the quarter more than all of 2020 combined a crazy amount of settlement going on before you move on to the next metric right this eerily reminds me of the coinbase uh

volumes that they've did which is a very similar metric where all of q1 was more than all of 2020 uh so that's pretty cool correlation between ethereum the network and coinbase the company absolutely it all tends to rise together okay so ethereum exchange outflow this is a metric i'm particularly excited about but yeah it's coming out of exchanges so when it goes out of exchanges there's only one other place for it to go and that is on the ethereum network or on maybe a layer two that's secured by ethereum a lot of ether is going out of

exchanges that means people are using it in defy maybe to back a stable coin people are using it as a collateral base for loans people are just holding it inside of a bankless vault rather than a crypto bank which i think is pretty awesome as well this is another all-time high number of addresses holding at least one coin on ethereum hit an all-time high lastly i'll go to this uh nothing you'd see here says the poster only ethereum active addresses so every ethereum address is kind of like a bank account

and ethereum active addresses have just about breached all-time highs as well pretty cool yeah i see you bankless listeners stacking that ether being more active ethereum nice job nice job absolutely it's important that we also use these money systems we're not just stacking uh ether for the hell of it we're actually using these d5 money systems uh david speaking of using ether for economic resources this is ether being used to economically secure eth2

our friend justin drake just reported that there is 10 billion worth of ether being staked right now that's 4 million ether worth in supply which equates to 10 billion worth of stake that is the economic security for the future of the ethereum economy what what do you want to say about that and that is also how much ether is receiving eth rewards from the beacon chain uh and so proof of stake alive and well for those who want to stake their ether

this is crazy too i know we're going to talk about this a little bit but this is another tweet that justin put out and he actually linked a spreadsheet which i'm going to pull up where he is looking to estimate i believe what um returns will be for those who stake in ethereum post eip 1559 which is one part of kind of the ultrasound money thesis and then also post the um proof of stake merge where we no longer need proof of work did you catch some of

did you catch some of these numbers here yeah there there are quite impressive and when you link together the rewards earned by validators which are both ether issuance from the protocol but also tips and tips could actually be pretty substantial because tips is where minor extractable value gets captured and so you uh the only people receiving mev rewards are stakers and so you're receiving both issued ether and paid ether at the meantime ether is also being burned and so what justin drake's best guess is is

staking apr which is the issuance plus fee rewards which is mev and transaction fees gets you 25 apy on your ether i mean this has to get arbitrage down over time but at genesis this is what justin drake thinks is going to be the staking rewards which is pretty pretty phenomenal yeah so that means if you stake rather than receive the what six seven eight percent that you're receiving today you're actually receiving 25 percent in people as a reward right effectively when we also

include what is being burned yes and that's going to encourage more people to stake which is going to in turn lock up more ether and this doesn't even take into account the supply issuance reduction that is coming with the merge so you get two things happen simultaneously you get these massive staking returns and then you get issuance slashed down from like four and a half percent all the way to one percent or maybe below maybe into the ultrasound territory where uh ether supply is being burnt like it's just this uh convergence almost like a

perfect storm of all of these bullish happenings at once i i don't think people like so how many tweets how many how many uh this got about 640 like i i don't know how many people understand this david like even our ultrasound money on youtube i was looking at this early in the week um 16 000 people have viewed it right and that's great right it's a two and a half hour episode i know it's like movie length right right but at the same time only 16 000 people have viewed it right how many people do you think understand

what is about to happen to ether i think of of people that pay attention to this space and know ethereum one in 100 people really truly understand the ultrasound money thesis and think about how many people out there in the world who's like oh yeah let's let's let's start thinking about crypto all right there's bitcoin there's this thing called ethereum there's litecoin these are all the same let's let's let's uh so let's allocate all dogecoin let's allocate all these things yeah so many people do not even know

what this ultrasound money thesis is who are inside of ethereum and infinitely no more don't know what it is outside of ethereum that the ultrasound money thesis and what's being articulated by justin drake on his twitter and in that podcast is in my opinion the world's biggest alpha i can think of it's so massive it is it's available to you if you're listening right now if you're paying attention yep absolutely uh so early on this let's let's talk about another thing that's early for ether day one of ether etfs at

least in canada thirty three fc canada three of them that's crazy nice job canada three of them go canada three of them released on the same day i think one of these is from our friends at uh ether capital whom we had on the show in december but it's a pretty good volume on these ether etfs about one-fifth of the volume of what bitcoin did but now that there's an instrument uh i think more institutional investors at least canadians will pile in and of course if canada is doing it the u.s has got to follow along right look david i

don't think that the u.s so let me ask you if the u.s approves a bitcoin etf why the hell wouldn't they approve an ether etf at the exact same time right like they're both commodities now we've already got statements that they're both commodities we've already got plenty of conversation about ethereum-related topics in uh congress and other other other regulatory bodies if the bitcoin etf gets approved the ether etf comes within six months after it like and that's slow in my opinion maybe at the same time

i don't know that's fast that's a hester pierce question all right last note here david before we leave markets is actually this bitcoin price plunge caused a lot of chaos in the markets at least short term a lot of liquidations on some positions as well 7.6 billion in uh long positions were liquidated in one hour when it plunged down to 52 k what's going on here yeah this is also true for for ether as well where ether topped out at 25 25 000 a little bit above and then it

and it fell to like almost below 2 000 in a very short amount of time bitcoin did something very similar and people were just leveraged probably perhaps people who are really bullish on the coinbase news really thought that there was going to be a flood of capital into this base afterwards so they took on a bunch of leverage funding rates were through the roof it cost you like 40 to 50 percent apy to borrow usdc from ava and compound and that's because djinns were going leverage long and then there was there's a bunch of

just like drama and debate and perhaps like a fake news tweet that really triggered a bunch of fear uh and as a result there was a cascading set of liquidations uh that really brought the crypto prices down uh very very quickly and liquidated the most amount of capital that has ever been liquidated ever in the crypto markets all in one hour and the cool thing is is that we bounce back from it pretty fast which means that there is capital that is being deployed to catch bids and those bids were caught

and then we resumed the being bullish and so that's pretty cool and if you want to sleep at night of course don't take on excessive margin you could be among those liquidations crypto is incredibly volatile of course crypto can always go faster and lower than you ever thought it could and so you need to account for that if you ever take on leverage that's right been through one of those cycles haven't we david yes we have we've done this before all right guys there's more to cover in releases we didn't get a chance to mention what doge and safe moon is doing

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the world have on their phones now allows users to buy and sell crypto i think bitcoin ether litecoin bitcoin cash are all supported assets 70 million customers david yeah that's here so much surface area with so many people and i even already got a message with uh with one of my friends who i told to buy ether back at two hundred dollars and he didn't listen to me and then now he's because it was hard probably probably because it was hard he didn't have an account like didn't believe in it like who who and this was before ethers pumped so who the

hell am i to give financial advice to this guy uh turns out it turns out it was right but but now he messaged me and he was like well should i just buy ether through venmo and i was like well yeah you could uh i think you perhaps are going to make your way into the world of defy at one point in time so that means you need a real exchange like paypal or gemini but if you want sure why not that's a great place to do it um and so venmo now is competing with the likes of robin hood which is kind of cool yeah pretty cool i don't think they allow uh transfers off of venmo or my incorrect about that so you don't really get your private keys they custody at

all right and you can't you i don't think you can transfer it from account to account but i'm sure that that is something that they are going to do because why wouldn't they they're a payment app what's crazy about this though is i don't know anyone around me who doesn't have venmo like everybody has venmo completely normalized so now crypto is like this kind of a headline in 2017 once again david would have been absolutely insane now here we are living it crypto is being adopted um david let's talk about this this is a new feature from block explorer ether scan etherscan is just so valuable man crazy

how awesome it is it's like a like daily user of etherscan uh it's just an amazing tool for seeing everything that happens on ethereum now they are showing what's happening in the dark forest the mev dark forest what do i mean by dark forest dave and what are they shown here right so mev is a very hot topic and we are in the works of making a mev panel happen kind of like an ama so stay tuned for that we're trying to get phil diane on as well as georgios and also perhaps charlie noyes

currently in the works but maybe that maybe there's a panel and mev panel coming your way in the banquet's future and what's going on is that uh miners who want to compete to mine a block and also order those transactions in a block instead of having an on-chain gas war it's actually beneficial for them to actually just you know tuck some ease under the table and send it straight to the mining pool so the mining pool doesn't have to broadcast their transaction and while the that off-chain bidding war can be obfuscated that tip that is paid directly to the mining pool to compensate the pool for mining the

transaction without broadcasting it that that actually that part can be broadcasted and that is what ether is showing us they're showing you a what happened uh if there was a transaction that paid a a spark pool or another ethereum block miner mining pool if there is a tip being paid to them they will report that so you can know what is a mev transaction versus what's not i think there are a lot of challenges with mev it's also not all bad um but the best thing we can do with mev is make it visible is actually show it and

um this is what ether scan is uh is attempting to do with at least a portion of it really cool stuff um alpha hamora that is a really interesting d5 protocol we've we've talked about in the past they just did a v2 relaunch they've had some issues a couple months ago with kind of a security breach related to like something the iron bank i think we were we covered it then but this new v2 uh launch what's that going to include david yeah a bunch of cool cool upgrades and so there are now lp tokens as collateral unit swap v2 lp tokens

perhaps also sushi lp tokens as well um uh you know yeah so unit swap the curve lp tokens sushi swap lp tokens balancer lp tokens are now collateral inside of of of alpha and so that's fantastic there's more interest-bearing tokens as well uh and so there are other assets that are uh created their interest-bearing uh derivative of them that's what the alpha protocol does there's also protocol fees being paid to alpha stakers which i'm always a big fan of if we can