📺 ROLLUP: Visa buys CryptoPunk | Budweiser Beer. ETH | NFT Mania

hey bankless nation it is the fourth week of august david what time is it it is roll up time time to roll up the entire week of news in crypto which is always an ambitious endeavor and it's always for me the most fun piece of content that we produce here out of the bankless world so ryan let's go ahead and get right into it yeah you know what i feel like we're not just rolling up the the week here it almost feels like we're rolling up the summer a little bit david you know kids are going back to school this sort of thing we're creeping into september and it feels like we have a lot to roll up

maybe create some themes out of the summer because it didn't turn out how i thought it would a little bit different wasn't necessarily defy summer layer two is kind of coming but it's not entirely here but oh my god nfts i think that's gonna be a major theme as we discuss it today yeah unlike the weather when you try and predict the the future of this summer in the crypto industry it just changes right right around you yeah and so what we thought was gonna be d5 summer which you know still still kind of was like there's a lot of stuff going on on layer two summer um but no it was

definitely like jpeg season for sure jpeg summer that's what we got uh speaking of seasons guys we think a next season a future season don't know when it's going to become it's going to be dao season and so it makes sense to start get involved in all the dows you can as many as are interesting and exciting one of which are friends at tracer dao they are launching a new perpetuals product which is super cool it's going to be a new money lego primitive they're deploying that on layer 2 as well as layer 1 i believe and they're looking for contributors

they're looking for governors they're looking for dow members if you think you can fill that role if you want to experiment in a dow try your first style maybe you're a dow master and you want to uh join another then go ahead and do that there will be a link to the tracer doubt discord in the show notes you can check that out all right david you ready to get into markets let's do it market time bitcoin what are we doing all right bitcoin started the week at the low low price of 48 000 going up to the highs of right above fifty thousand

dollars so bitcoin brief nice fifty thousand dollars this week hit the high of fifty thousand four hundred dollars and it's been down ever since then so we are coming in right around the 47 000 mark at the time of recording look crabbing crabbing around this week but like you zoom out new highs are fantastic new highs are fantastic uh even though it didn't hold it like getting up above 50 000 is is really really nice the the lows keep on creeping up on august 4th it was a low of 38 000 on august roughly like 19th it

was a low of 44 000 and we are currently uh maybe at a new high of a low at 47 000 if this is as low as bitcoin goes in the in like the the local seven day time period like that's really strong that's really strong yeah looking pretty good on the month for sure okay how about eth what's the story here ether started at 3 050 which is also the low for the week we climbed up to the high of 33 350 for the high uh and then we are currently back down just above 3 100

uh and so again a decently good week for ether um but again we we i mean no it was a good week but uh i did like that 3300 number and i wanted to be back there yeah i wanted to be back there you know what i just feel like it deserves to be back there post eip 1559 but when you start to talk about deserving maybe you shouldn't talk that way right like we are not entitled to any of the games that we receive in crypto let that be a lesson to everyone who subscribes to uh bankless content um okay let's talk

about this though eat bitcoin what are we doing on the ratio here yeah we've been bleeding a little bit for the past like seven days or so but again a really high uh threshold currently at point zero .066 uh ether bitcoin ratio not too much to talk about just kind of still in that ranging in that high plateau area maybe a little bit on the higher side maybe higher middle um i don't know 0.066 is still a really strong number this is starting to look like the conclusion of the summer david and it always brings me to the question of uh what will fall bring what will the next

season bring in krypto and i'm curious if we're just hanging here and then getting ready to launch up or whether we get some more crab or or down i guess those are all the options it's gotta be one of those available we we promise you it will be one of those three options all right let's talk about um total value locked in defy man i'm hoping any any day now we're going to be reporting out that we hit that 100 billion mark but we're not there yet 82 billion any more thoughts on this david yeah eight billion away from breaking a new all-time high and total value locked

in defy i believe we're at 80 billion last uh last weekly rolled up and we are at 82 billion right now ave continues to dominate uh at the top number one total value a total value locked in ave uh and yeah i think all it really takes is like man if ether can break 3 300 in some of the assets that are in defy all appreciate a little bit like it'll absolutely break through the the all-time high of 90 billion locked indeed you know someone's talking uh on on twitter to me david i'm wondering your

thoughts on this so the fact that eth has been so strong lately and this was a tweet i mentioned about all the eats were burning um he asked the question is that bad for dpi is that bad for defy tokens to have a very strong eth with supply shrinking um i i'll give you my thoughts but i'm curious to hear yours first do you think that a strong eath is bad for defy tokens uh in dollar terms absolutely not in ether terms perhaps yeah like i i think ether is going to be a really really hard asset to outperform like

it's ultrasound money how are you supposed to compete with that uh and so defy tokens for eath is like a it's going to be a massive tug of war i kind of view these things as kind of like a binary star system is like you know they're kind of rotating around each other one benefits the other which benefits the other but even when binary star systems there's usually one star that's bigger than the other and like the compelling case behind ether is that it's a really really big gravitational black hole of a bunch of value yeah you definitely want to have both you definitely want to have all three if

you can we'll get to the bed index in a minute but let's talk about dpi that is the d5 pulse index so where are we where are we at for uh tokens on the week defy tokens that is a little bit down on the week still overall a very strong monthly performance but we started uh dpi at roughly around 400 to start the week and we have fallen down to 370 dollars per dpi token which is roughly about the low for the week so a little bit down on the week for dpi let's check our seasons are we in d5 season

no no we're not david uh are we below 0.13 we are below point one three we are at point one two but again the bottom is strong the bottom is strong your prediction was point one two instead of one three i mean you're holding you're holding pretty close to that right yeah you know horseshoes and hand grenades right okay so it's nft season it's not yet defy season and are we awaiting the return of fifa is now a time to go check out these uh interesting defy token gems what do you

think i mean we're always waiting for defy season right like it's always right around the corner as soon as nfts can shut the hell up we can we can have a defy season maybe um but like like i've been saying like the bottom on dpi eath is the bottom of his painting is like really really strong it's hit that point one two level over and over and over again and granted it could just break through and fall and fall even more everything anything is possible it could go up flat or down we all know this um but like like we've been saying nfts are really really loud

and generally that's been kind of the time to allocate into really really quiet things um that's kind of like a nice rule of thumb you know every rule of thumb has like an equal and opposite like counterpoint to make but you know if generally buying things when things are quiet has like worked out yeah agreed especially if you are buying and holding let's talk about the uh bed index that's another index that we track this is a combination one-third bitcoin one-third eth and one-third dpi all put together what are we looking at on the week yeah deep excuse me bed started at

the week of around 140 hit the high of 162 dollars and is currently at 145 dollars ryan can you hit the three month on on the bed dude it has ever since inception bed has just performed beautifully it has hasn't had like a down maybe it's had like a down week here or there but like no the whole entire thing is a straight line up and to the right on the on the three month chart which i think is really longer than the bet has even existed so like it's really the maximum

chart ever since bed launched up 54 again bad index best crypto index of all time it's gonna be interesting to see this one perform over time i'm excited about it um all right let's talk about a big story which is look dude over a hundred thousand eath is now burnt we just passed that milestone a hundred thousand twenty days is by the time people are listening is 21 days from launch over a hundred thousand each burnt that's um what are

some of the numbers here david in terms of per day per minute seven each per day is that what that equals yeah so uh uh go ahead and scroll down and go to that fee burn and okay so we see the all time ever since eip1559 got launched we've had an average of 3.3 eth burned per minute but if you go and uh turn those those metrics more recently like i think yesterday the 24 hour level had like nine eth being burnt per minute uh today it's 6.2 eth being burned per minute so especially in the last week we have seen

very very ultrasound ether uh ryan go to that burn leader board and hit all and you can actually see how much of this is actually nft activity because of the 100 000 ether that's got burnt the biggest burner is open seeds these are crushing it 15 or 15 million ether so nfts just on openc not including the other nft platforms it's 15 of all ether burn which means 15 of all economic activity flowing through ethereum is open c and buying and selling nfts which is pretty crazy

yeah that burn rate i think i said earlier that burner is 70th per day of course that's wrong i meant uh youth per minute right um but this openc activity is absolutely crazy dude like um why are people spending this much on open c i did a little like i i haven't done much with nfts you know this david yeah but uh i i i did a little bit this week and i was like blown away by the gas fees i've seen high gas fees in e and eve before of course ethereum no stranger to that but like to buy an open c nft

130 worth of gas right for something that's i don't know some of these some of these are trading under 100. like you're not going to pay that i can't believe people are paying this much for nfts on openc well the erc 721 contract which is the nft like token contract is much more gas intensive than a simple erc20 transfer so it automatically gets the complexity premium associated with it as well plus um there's like royals he's involved with openc and so like you know there's some and so there's contract uh information with that um and

overall uh nf 721s are just overall more computationally intensive so they come with a higher gas premium um but like the reason why people are paying these gas prices is because like they think that their 100 gas transaction will net them more than 100 worth of profit when they flip their nft if they're flipping their nft or they just want to buy and hold the nft and the it's worth 100 to them so people are just baking in the gas prices into the into the valuation of the nft when they buy it it's a lot of nfts though hanging out on main net not so many on layer 2 or side chains it's going to be interesting to

see um yeah so we did hit a new burn record i think you mentioned some of those metrics um eip 1559 dominance the transactions now we're at 50 so that means 50 of all ethereum transactions are now eip 1559 transactions not the legacy transactions that's moved up a lot since last time we talked about it i think last time it was like hovering around 20 30 or so now we're up to 50. this is going to go all the way to like eighty ninety percent right a hundred percent

it's going it's approaching a hundred percent with with certainty and just for there's no no confusion every single transaction ultimately becomes an eip15559 transaction there's a legacy transaction that like you're allowed to use and still is compatible but like it's less optimal as in you might accidentally be overpaying versus the base fee and so this is really on the wallet providers people like metamask metamask eip159 support rolled out and so it's really just allowing the users to uh optimally express save some money right save some

money right yeah but literally everything everything ultimately becomes an eip1559 transaction at the end of the day it all burns eth okay let's talk more about some that open c volume david so folks can see the uh the axis of this chart here but that axis on the left is 200 million at the top look man this is open c volume um i earlier in the week there was celebration of three days over a hundred million dollars in volume those are days 100 million per day i'm looking at this and i'm seeing days over

200 million in volume now on openc absolutely insane daily usd volume on openc crazy man and all of this is denominated in eth as well which is also staggering right like you can actually sell your nfts for usdc on openc but no one actually does it which is crazy yeah um yeah the the biggest three days one is like 160 million per day 193 million per day and then the highest one is 208 million per day so three really strong days in a row and and the fourth day

today isn't even over yet um and this to me just kind of feels like when uniswap finally experienced like defy summer in 2020 like uniswap hadn't really experienced the bull market before then and it blasted up the nft platforms also have are yet to experience bull markets except for the one that's going on right now and so we really see open c really dominating in the volume on nfts open seats like kind of like the unit swap of nfts except for the fact there's a very very big difference on openc centralized blah blah blah but like as like market share and share it's a

killer app yeah it's a killer app of nfts now and it this might be 100 million days might be the new normal for openc i think it's really interesting when you start comparing openc to like the uh traditional web 2 companies we might be familiar with or web one this is eric connor saying open c is at 70 of ebay's volume now 70 of ebay in terms of transaction volume uh he makes a kind of equip here i'm sure this is all just money laundering and wash

fading though it's nothing commenting dc's comment blower are so funny he goes [ __ ] that reminds me i forgot to move my drape eggs to the dryer right wait is that is that a thing are people talking about nfts and money laundering as like a way to explain this i haven't seen that now yeah i've heard murmurings about this i haven't actually seen any evidence for this but like in theory it's like super possible right so like you own an nft you like you p to p sell it to another wallet and then you sell it to that

wallet turns out that wallet is also your wallet but only you know that uh and so you can kind of like get rid of your nft and put ether in a different i don't i don't know i don't whenever i've seen this comment though david it always seems like just a little bit of salt somebody's just angry about nfts because maybe they're angry about ethereum because just maybe they're an angry individual i don't see any evidence of money laundering substantiation and that sort of thing going on i mean the critics will say like yeah that's the point right like no one can it's completely deniable and completely unprovable so maybe this actually does

turn into a broader conversation um but like until until like something somebody like chain alice's comes in and says like with definitive because they're they're the only ones who can really actually have the data enough to actually prove this out david do you know what it goes back to though it's still going to be easier to money launder through traditional art just like it's easier to money launder through like is full of actual cash anything that's digital is just inherently a 10x easier to track doesn't matter what chain you're using oh ryan have you been reading the essay that's coming out on

bankless on wednesday i talked about this oh really yeah nft nfts are all serialized right like every single nft is unique and traceable on ethereum uh the painting that i have in my bedroom that you can't see you don't know what that's like then it's not registered with the nation state it's not deployed on a theory no idea you have no idea you know what the picture is yeah right like is it is it 50 or 50 million you have no idea because and like neither does the united states government it's not 50 million dollars i was wondering

it might be though it might be it there you go okay so this is another look compared to web 2 companies open c is about to break into the top 1000 list of websites in the known universe this is like an alexa ranking which ranks the most popular websites so openc the top 1000 just a little bit behind wow look at these though david these are some other crypto native websites etherscan is already broke the top 1

788 coinbase is 764. finance is 155. wow this is crypto just bursting into mainstream this is what this looks like and i think we'll we'll get to the top 100 for a number of these before long okay look at these numbers he finishes up saying gotta catch ebay at number 39 in etsy at number 70. right so like think of the how massive ebay and etsy are from like a traffic perspective and we're already almost like eric connor said we're at 70 of ebay's volume and this again we're talking about this

on the last weekly roll up this just goes to show like how scalable digital goods are because you don't have to ship anything they're not physical they're not actually atoms and so like one person can actually account for like a hundred times more volume on openc than they ever would on ebay or etsy uh and so there's there's and so like we expect digital volume uh of digital goods to completely dwarf physical goods just because it's they're unencumbered right uh and so like it's cool to see the volume flip but also it's also would be cool to actually see like the users flip as well

yeah i mean how much more revenue per customer are you driving is another way to look at this like i feel like web 2's metrics primarily are about like daily active user the number of um visitors on the site and that sort of thing and that's all important when you have an attention economy but when you have like an economy that's all about capital coordination and capital then you're looking at other things you're looking at things denominated in like assets under management trading volume the amount of revenue that's flowing through these become more important metrics when we're looking at like web3 and crypto

look if openc is at just almost at what 1 000 in the top websites and it's basically almost on par with uh ebay volume imagine what happens if like open c turns into like something closer to like where ebay is on the websites at number 39 like how much volume do you think openc's gonna be doing then this is the bookcase this is why it's easy to say nfts are in a mania but then you also say but like are they but like what about the future yeah i i don't know um my neighbors

aren't talking about nfts yet you know what i mean like i'm not having casual conversations with anybody so it's what's the top signal david i don't know love to see all right let's talk about this tornado cash this is another i think good indicator of um market health there's over 218 000 ether locked inside of tornado cash i think this means aetherians value privacy tornado cash of course listeners are unfamiliar this is a privacy protocol on top of ethereum so you push

money in it kind of jumbles it mixes it around and individuals don't know what your address is coming out of it so this is great if you value privacy on chain i think a lot of people do this they don't want to dox themselves in their address by shuffling funds through an exchange but then of course the exchange knows your identity aml kyc this is a way to do this purely on chain and i think is a sign of good things super cypherpunk application and just

you know really instantiating the rights of the individual inside of ethereum right you have the right to have private funds right now it's ether only but when the reason the rationale behind why ether inside of tornado cash when that number goes up that means like more and more people can and can access more and more privacy the more ether in tornado cash the more privacy uh that you are able to achieve think of think of yourself as like a little uh fish inside of a bigger school of fish if that school of fish is massive you're

even more safe right you're more safe from the sharks uh and so like the pride the ability for individuals to access privacy tools is going up which is the through line here yeah i've always wondered what the what a potential authoritarian aggressive nation state's reaction to something like this is because there's been talk before that in confusion well exactly they'll be confused at first but there also could be there i mean there has been talk about um making us uh privacy coins illegal like something like a z cash or era but what's

interesting about this is like this is an app inside of ethereum so like you don't want to make all of ethereum illegal do you in your jurisdiction so do you make this particular privacy app illegal and what are the implications of that and you know is there a world david in a in a future dystopia where you have exchanges that are not allowed to interact with any ether dress that has interacted with tornado cache i don't know but if that's the case we still have an entire decentralized banking

economy we don't have to use those exchanges we can start trading on uniswap and doing this sort of thing so um i'm not sure where this is all going to evolve but i love where ethereum is uh positioned in that it has these cypherpunk tools available to an individual who's trying to become self-sovereign there's and there's there's definitely ways where like authoritarian or top-down controlling nation-states can like get what they want because like if you have a doc's address and you want to use tornado cash to become private you're free to use it but everyone can

see your funds going into tornado cash they just don't know where they're going out from but like if you are like getting in trouble with your country because you forgot to pay your taxes always pay your taxes so you don't have to deal with this but like they say oh like you sent a hundred ether into tornado cash like where'd that go and you don't get to be like well i don't know i don't know where it went like that's not going to work that's not going to work exactly exactly um all right let's talk about this too this is another good number indicator for ethereum over 1 million eth now staked in lido finance

huge huge for lido a number of other staking things haven't launched yet uh we're waiting for a rocket pool quite anxiously but um lido has just been crushing it recently and this is the closest thing if you're looking for a staking provider the best thing you can do is run your own validator at your house sticky that way but um if you're not going to do that and you're looking at staking service companies aside from rocket pool which is probably maximally decentralized lida is probably second your only other

option is some kind of a centralized exchange or centralized staking service provider so it's good to see i think it's good to see yeah and lido's strategy has always been like go to market first decentralization later and they have very like very concrete paths towards the whole decentralization thing um but they the their strategy has been like well if no one goes to market as soon as possible on like with with a decentralization ethos then the staking as a service centralized exchanges are just going to take up all the all the

market share right and so they their strategy has always been like market share first decentralization later um and i mean the strategy has generally worked out for them uh they have a million ether locked in inside of lido now the path is can they actually decentralize fun fact i'm actually a lp a staked ether from lido with ether normal ether inside a balancer earning a cool 8 percent apy in ether denominated terms and also earning ldo oh ldo rewards uh so that's what i'm doing

that's cool did you buy that steak ether david you don't mind me asking uh no is that a result of actually staking it a result of actually staking it i actually sent ether and so like some of this one million ether is mine some of it maybe uh nine hundred thousand or something right yeah give or take a little bit more yeah give or take you know put that fifty million dollar dollar uh paid thing in your bedroom all right uh guys we will be back with the hot releases of the week of course some news and our takes but before we do we want to thank the sponsors that made

this episode possible when you shop for plane tickets you probably use kayak expedia or google to compare ticket prices so why would you limit yourself to just one exchange when you trade crypto when you make your trades you want to make sure that you're getting the best possible price on your trade and that you aren't paying high gas costs that you could have otherwise avoided that's why you should be using matcha matcha routes your orders across all the various defy exchanges on ethereum polygon binance smartchain and gives you the best possible prices without taking any commission matcha has smart order routing that splits your

order across multiple liquidity sources if matcha sees that it gets you better pricing trading on matcha is super easy because it pulls the liquidity for me into a single easy to use platform and that has even saved me multiple times from accidentally picking the wrong decks to trade on and accidentally getting a bad price matcha also allows for you to make limit orders on chain so you can set and forget your defy trades and they will go through automatically while you're away new to matcha is an integrated fiat on-ramp you can purchase crypto directly with your credit or debit card and have that fiat be

instantly traded for any token that has liquidity when you're making a trade head over to matcha.xyz bankless and connect your wallet to start getting the best prices and most liquidity when you trade your crypto assets 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 defy 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 arbitrome 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 arbitrarily 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 news of the week the first is this euler announced this is different if you've heard of euler beats this is euler which is a um a lending protocol sort of a uniswap for lending is kind of the original idea this has been a long time in progress what's the tldr on this one yeah this is supposed to be a governance minimized lending platform uh which is why ryan just compared it to uniswap but it functions a little bit more like ave or compound right borrowing and lending

money markets in between determined by algorithms but with uh fewer governance controls uh and so we we on the bankless nation like the protocol seeing thesis uh the less governance and the less powers that humans have over these things the more systemically scalable they are the more trustless they are and so this is an experimentation on governance minimized lending platforms um disclaimer ryan and i are seed investors in euler with paradigm there you go okay let's talk about um

lyra on optimism so i think we've mentioned lyra a few times which is basically a a derivatives exchange that wouldn't really be possible on the ethereum base layer well it is possible in layer two they just deployed on optimism i haven't tried this out yet but super exciting to see any other thoughts here yeah this is i've never really been an options guy i've kind of never really wrapped my head around them always kind of just been a spot market individual but options with ethereum with ether sounds really really interesting maybe i finally dive into

options on on layer two uh if anyone knows a really good like tactic or is interested in writing one hit us up absolutely i think we'll publish something with lyra here soon for sure um this is cool from justin drake in the category of releases kind of releases breakthroughs baby that's a new category meb research okay when justin drake says research there's lots of people talk about research breakthroughs all of the time in crypto right but when justin drake says it i gotta take notice have you

read about this what's going on uh i have not read about this but i actually was able to talk to justin drake he mentioned this in the um layer zero podcast episode i was recording with him and he was like wait when is this coming out can i talk about this and i was like it's not coming out for three weeks so you can definitely talk about this so he talks about what's going on uh the breakthrough is that uh ether is becoming even more ultra sound okay so we have the base fee right stop and oh yeah yeah right uh-huh get ready for this all right like you know grab onto your seats um the

breakthrough is i like justin drake accurately predicted that base fee would be between 60 and 70 percent of ether burned uh turns out that's actually about right we are around 70 ether burned with that 30 percent uh of tips being paid to miners and that tip is largely mev right like minor extractable value um or or now really maximally extractable value and this is uh just the the fighting for the rights to um to have a certain transaction in a specific spot uh and like it's actually relatively significant like most base