📺 ROLLUP: Wormhole Hack | Wonderland Follow Up | Justin Bieber Bored Ape | Gamestop X Immutable

like groundhog day yesterday too wasn't it do you know if the groundhog saw a shadow i have that happened i have no you don't track this no is there no d5 prediction market on this perfect for groundhog day hey bankless nation it's time for the weekly roll up david first week of february how you feeling man i'm absolutely stoked there's so much that happened in this last week i say that every single time but again it's always always true and at the same time that so much happened there's always also so much to be excited about and we are going to talk about all of those things

what happened in the week and also what are we excited about moving forward because there's a bunch of shenanigans going on in crypto as always and we're going to cover it this week on the bankless friday weekly roll up oh my god so much to discuss uh largest exploit ever okay this might be a 300 million dollar exploit and it happened on a bridge this was um actually the second largest in d5 history i should say we're going to talk about this this happened on solana it left 120 k worth of eath on solana no no no no 120k eath on solana

yes yes nothing but nothing okay so we're gonna dig into that why did that happen what's going on what are the takeaways also gamestop partnering with immutable so this is the wall street bets love gme and they're partnering with immutable to do a 100 million dollar fund we'll talk about that more trouble in wonderland as well an extension of the conversation we started last week on this d5 project that was managed by a convicted felon also the irs are they taxing staked income

as income or maybe not maybe they're not only you would include that as a hot topic of the week ryan this is super hot okay i mean i want to know if my uh staking rewards are income or not there's a potential they might not be and some guy named josh is suing the irs to push that which is awesome ryan just thinks this is the coolest thing my best my new best friend is josh she has a fitness center too we're going to talk about that also david nft season i know you want to get to that too january's been a hot month right nfts are up nfts are in vogue nft season

it has been in it's not the old nfts there's a bunch of new crops of nfts uh some new celebs that justin bieber is included in the new celebs that are aping into nfts what nfts did justin bieber buy i'm sure everyone listening to that is on the edge of their seat waiting to hear exactly what justin bieber is up to in the world of nfts yeah you just got to front run the beeps now that's the objective in uh nft trading so so much to discover to uncover as usual uh it was like groundhog day yesterday too wasn't it do you know if the groundhog saw a shadow i

have that happened i have no clue you don't track this no is there no d5 prediction market on this i'm perfect for groundhog day does this not matter to people i don't think the overlap is all that big okay all right groundhog day is a thing of the past guys uh we're gonna talk about all of these things before we do we should talk about some updates from our friends and sponsors at xerion xerion is something we've talked about on bankless often it's like an app that i check almost every day to see my d5 portfolio and they're adding

some cool things david what are they adding oh so so many things they've added this fantastic graph that i actually really really appreciate just to see like all the different tokens the aggregate value of my entire portfolio but as we expand into the multi-chain multi-l-tube cross-train ecosystem xerion is being the one-stop shop to get all of your money in all the places that you want it to go so they have included all of the evm compatible networks that we're familiar with optimism arbitrary avalanche and they also have other layer

ones coming soon into into the integrated into xerion so you can easily just put your money in the places that you want it to be through the xerion user interface just drop down the and select a network and it's really just becoming the terminal to access all your money on all the bridges and all of the chains all at once all from one single spot so go load up your wallet into xerion uh and start doing your cross-chain l2 l1 transfer shenanigans today we got some bridging as well this is a great place if you've

got assets scattered all across different chains to see them all in one place so you guys can find out more the invitation is to connect your wallet and see what's up with xeron at bankless.cc xerion all right david let's get to the markets man bitcoin price what are we looking at this week yeah started the last week started this week at thirty six thousand five hundred dollars hit a high of thirty nine thousand dollars and fell back down to thirty six thousand seven hundred and seventy so yeah just uh up up less than a percent on the week

um but you know at some point in time when everyone's talking about bear markets uh being flat is good so that's what we saw out of bitcoin this week uh and then turning to ether ether started the week at 2 500 hit a low of 2 350-ish dollars hit a high of 2 800 but then bounced off that high a little bit of resistance at that 2800 mark fell back down to 2620 where we are right now overall up seven ish percent on the week six to seven percent so strong week for

it for ether love it bitcoin flat ether up what does that imply for the eth to bitcoin ratio then yeah ratio i think it was last week it bottomed at point zero six five we are currently at point zero seven one almost seven two excuse me um so significant ground cut like recaptured by the btc ratio uh and gosh look at that just look at that just floor being printed oh my gosh like la higher highs back in july we hit .055 a few months later but in october november we hit .06 as a floor uh just

last week we hit .065 as the floor so for the last like coming up on almost a year now the e3 btc ratio has hit higher lows consistently which is really cool very interesting as well to track especially going to the merge we'll talk a little bit more about that later the bankless bet index if you want a third a third a thirds a little bit a third d five third bitcoin and thirteenth this is the index for you what's that looking at uh like on the week david yeah marginally up on the week start of the

week at 98 dollars currently coming in at 101 dollars so up a little bit more than one percent on the week there you go uh good exposure to those things uh david let's talk a little bit about eth all right because it's up seven percent a little bit the ratio going up um it's going to be a big year for eth we think and part of the reason why is because we have the eip 1559 burn in full effect market is discovering that of course we have the merge hopefully later this year but one of our

favorite websites ultrasound.money has added some new really interesting displays where you can see what the burn is doing by category so this is the burn over the last day and it splits it in categories nfts d5 mev l2 and miscellaneous and what's really interesting here is nfts as a category looks like it's consuming 47 of ethereum block space in the burn so it's contributing to 47

of the total burn um d5 is 21 okay and those are the big categories that like everything else is um you know after that but nfts are the product market fit for the product that ethereum sells right now which is block space what a blockchain sell blockchain sell blocks really interesting to see that breakdown in the burn categories here and it's it's more clear on what you're betting on when you're betting on ethy assets product market fit for nfts and

for defy and some of these other things as well any thoughts on this david yeah this is a 24 hour time frame what happens if we zoomed out to like a week can you uh there you go okay uh and it stays about the same about the same so it's relatively stable uh and yeah even zooming out to the 30 days about the same pretty cool breakdown pretty cool to see these categories i expect the l2 category to grow significantly uh especially as things like nfts and d phi move on to layer two the layer one burn

rate of these things is going to go down and be replaced by l2 burn rates and so this is actually kind of a proxy metric for how much activity is going on on l2 versus l1 and so that will be the thing to watch over the long term eventually l2 will start to just gobble up some of the blocks based share because when you make an nft or d5 transaction on layer 2 that will consume block space on layer 1 ultimately but via a layer 2 bridge so that's what's going to happen there totally agree these are the users of block space many of them will be layer

2s and by proxy maybe your transaction will be rolled up into this you as an individual will not be able to compete with a whole entire layer two blockchain for block space on the layer one so just capitulate now and move your stuff onto layer two hey stop making assumptions david i'm sure we have some massive whales in the bankless listener group that'll always remain on l1 well they can only remain on l1 if other people are also on l1 humans want to be around other humans it's just you and the robots will so you might as well my company there

this is cool too i love how ambitious this website is monetary premium track and it's tracking a percentage of market cap of ether versus some other uh monies one is bitcoin of course and ether is about 44 of bitcoin in terms of a value but the next is gold and so ether right now is only 2.6 of gold and it's tracking the flipping so everyone pull out your calculators and multiply the price of ether divided divided by .0026

uh uh i'm bad at math anyways pull out your calculators and do the math yeah it's like it could get a lot bigger is what david's saying also um it's 1.49 of us dollars and i think that's probably us dollars i don't know it's it's it's probably you know one of the m zeros or m ones of us dollars so anyway uh interesting to track that over time uh another chart that i think is pretty bullish for ethereum and paints this picture in a different way chris breninski tweeted this out it's the percentage share of fees over time okay

this is block space sales and again what do blocks chains sell they sell blocks uh this is bitcoin in red and ethan green look at this chart david this tracks from incredible inception of bitcoin basically where it was all read it was 100 bitcoin were all the sales of course eth was not a thing and this is tracking these two assets side by side and then eth comes along to uh 2016 about like less than one percent i would say of the uh of the market share of

block space between these two and look what happens 2017 you can see and now look at it 2022 okay this is so fast it's blowing me away and chris berninski says almost didn't believe it when i saw it bitcoin currently at one percent of eth in terms of the amount people pay to use the network it's one percent of eth in terms of blockchain sales and look at how fast this happened absolutely mind-blowing the reason why this happened so fast is because of

expressivity when you have a turin-complete platform you can generate infinite reasons to use the blockchain and that is turns into fees ultimately at the end of the day it turns into demand for block space if you have infinite use cases it turns into infinite demand i i just i mean it's something we said very early but you can now see it very clearly is if you're betting on eth you're betting in a an economy and if you're betting on bitcoin you're betting just on an asset which is very interesting uh to see this dichotomy also david this was cool you and i did a

um state of the nation episode where we went through a dollar cost average for uh ether the asset and that was very well received can you just give the tl dr of of that episode and then i want to talk about this after you do yeah so a discounted cash flow model is a tried and true model that is just used by all of finance like ever that's what that's what finance uses to value the uh the capital assets of the world based on a discounted cash flow model how much

money is this thing going to spit out into my hands over time and we can come up with a model for evaluating that ether is the only asset the only l1 crypto asset that has the metrics that are needed in order to actually create inputs into a dcf model and so with that we brought on ryan alice who has done a very robust dcf model for ether uh and we can actually using comparable metrics comparable p e ratios uh to other uh like depending on

how fast you think ethereum as a network is growing like do you think it's fat growing faster than amazon do you think it's growing faster than facebook do you think it's growing faster than netflix making some assumptions as to how fast the ethereum network grows we can actually come out with some sort of justifiable model for the price of ether and let me tell you it's bullish if you're surprised it is a bullish output of a model and the cool thing about that is that is just one aspect of ether that makes it so cool is the the cash flow analysis of

ether there's also reservation demand by locking it up in d5 that's not even included in that model so definitely go just watch that state of the nation it's on the video it's on the video on the youtube it's also on your podcast feed and if you just have any people from tradfi world that wear ties send them that send them this model like this is the language that they speak this is how ether is going to be understood by tradify and how is it how it's going to be justifiable to invest hundreds of millions of dollars into this asset coming from uh people that wear ties

send the bottle to your thai wearing friends is what david's saying and what's cool here is we say all this to also uh tee up this there are other takes on a discounted cash flow type model a dcf and so after that episode one bankless listener messaged me and said hey i've got some an even more dcf more precise dcf estimation here and uh passed me his spreadsheet and uh it's an even more bullish prediction okay i love

it i like this one now and it's not just more bullish this listener says it's also more accurate because it looks a bit more at the monetary side of things and the demand side it's a bit more precise with respect to issuance in the future i think that ryan alice's dcf was sort of a floor model based on some more static assumptions and this gets a bit more dynamic with ryan alice the the model spit out an eth price of 10 to 12k at about like 3.5 to 4 trillion dollars in market cap

this one's spitting out neath price of 73k all right but you the thing is like that's such a high crazy high number that i feel like if you sent that to your thai wearing friends it would just break their brains like is that even allowed then check the numbers time to check the numbers like put your own variables in the spreadsheet anyway optionality here guys if you like these types of uh analyses i will include this link to this dcf model in this in the uh show notes you know that the listener also mentioned to me because we said we

asked ryan hey do you model other layer ones this way i know you're bullish on layer ones ryan ellis do you ever model other layer ones this way and he's like i've never done that actually well this listener did he modeled cardano based on its dcf and the fair price of cardano was about one to two cents which is interesting because it's trading above a dollar right now i'm i'm look not sure what the model say i'm just it's just a model plug your own numbers in and you can assess the fundamentals for

yourself and choose what you invest in right that's all we're saying love you cardano love you charles uh visa visa two billion in transactions on their crypto linked cards that's a lot that happened really fast it's a lot yeah do you have one yet do you have any i do not no no i don't waiting for the gemini one yeah waiting for the gemini one i have a block five one uh that i use a little bit also coinbase has like a debit card that i have it's like blue

looks kind of cool i don't know i don't know how many of these i'm going to collect yeah it's really good uh we did that episode anchorage where we talked about the bulk case for for all of this i think this number will go a lot higher um david some staple coin numbers reminding us that stable coins are big yet small but what is this number we're looking at here yeah we're looking at total value settled with stable coins per year so every single year the graph resets back to zero and you can just see how much more money is being

settled by stablecoin so like at the end of 2019 we settled like i don't know 0.2 trillion dollars by the end of 2020 we settled a whole entire one trillion dollars by the end of 2021 we settled six trillion dollars so we went from .2 trillion to six trillion inside of three years uh and then you can just look at how steep the curve is at the start for of 2022 and compared to how steep it is at the start of 2021 and it looks like we're just going to have another record-breaking year in terms of stable

coin value settled so cool it's just another like 5x per year where are all these fees coming on ethereum i don't know 5x per year right so next year maybe 30 trillion yeah you could be larger another another chart reminds us that um well it's a lot settled there's only 140 billion dollars in stable coin supply outstanding so uh still lots of room to grow still very small if you compare that to like money markets which some people compare as sort of like uh quasi

stable coins like some people say shadow bank stable coins money markets are like 5.5 trillion and um you know the euro dollar is in the in the you know large trillions i don't know it's like three to five trillion uh or more so just a ton of room to grow on stable coins and i have kind of a thesis i don't know if you agree with this david but i feel like when we've seen stable coins grow they often grow faster during kind of bear or crab markets where people are like uh

i i want to hold some usdc and i want to harvest some yield on my usdc rather than having all of my cash deployed into like crypto native uh assets so like you know during bearish markets people tend to collect more stable coins they you know might sell their assets and wait for the bear markets and then um you know have have stable coins but you got your david spec david a skeptical face on what do you think about that yeah that's not that's not what i've seen i've seen a stable coin supply grow up uh grow really high

during times of of bullishness because that's when yields are super super high and also people are being degens and borrowing against their crypto assets more and more and more and so there's twofold demand there there's more demand to borrow uh and and also because of higher yield and i think that's what we see in the charts during times of number go up stable coin supply also goes up um jim bianco actually thinks that it's actually stable coin supply that's really a leading indicator towards bull markets as in like more anyway for d5 yeah more stable coin

supply makes bull markets easier to happen because because the cost to borrow are low and we see that out of the federal reserve right like what are the problems that we're having today is that the markets have been so bullish because the cost to borrow has been so low that people have been taking out infinity leverage and that's been pumping up the value of assets so i've taken the other uh side of that i have one more thought about this chart but i'll let you respond no i i i think that there's some give and take so i don't feel strongly on that i think um it just tends to go up telling i'm telling you i'm right

yes you're right david i know you you wanted to hear that today you're right david uh what's your other take on this chart though look at look at all the different colors look at them it's so balanced like look look at how yeah it's a very pretty pretty rainbow nothing's really too dominant but also look at the um as soon as what around like i don't know may of 2021 happened tether growth really tapered off in favor of usdc growth and other uh other stablecoin growth so this is starting

around may 2021 was when uscc really started to take the lead in rate of growth and now we so just a couple weeks ago we saw uscc finally pass pass a tether supply and so regulated stable coins really taking the lead versus uh you know more black box unregulated stable coins i would like to see more d5 native staple coins take the lead and we still haven't seen that yet um but uh we'll see we've got some regulatory information coming on stable coins as we get to the new section but guys so much more to cover we're going to hit releases we're going

to talk about the big news items that you have to know in crypto but before we do we want to thank the sponsors that made this episode possible slingshot is a decentralized trading platform that combines the performance and ease of a centralized exchange with the openness and transparency of defy slingshot aggregates liquidity from all of d5 in order to find the best price on thousands of crypto assets every token on slingshot comes with a price chart and trade logs to give you insights into the market's activity in real time slingshot is available on polygon arbitrary and optimism saving you from the high gas feeds and low transaction

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in order to experience defy and nfts the way it was always meant to be fast cheap and friction free all right guys we are back with the releases of the week david uh d5's favorite lending and borrowing protocol is getting ready to launch its v3 has just been deployed to testnet this is ave v3 what's going on here uh ave v3 deployed to seven test nets and so yeah that's what yeah look at it's pulling everywhere yeah deploying everywhere and i think that's just lending themselves to how they're going to deploy uh i think obvi is about to become a

cross-chain multi-chain ecosystem play uh and so like i mean look at that graphic there's avalanche optimism arbitrary polygon uh phantom i think is that one harmony uh so of it going everywhere turning into a protocol of protocols uh and so pretty cool um there's gonna have just probably a lot more crosstrain features capital efficiency features because the fees are lower you just get more optionality with what you can do in the protocol uh so just like rejiggering and rebalancing your your portfolio

without incurring like bajillion dollar gas fees uh so cool i'm really excited for aveb3 yeah same here great protocol uh david let's talk about some of the exploits okay i think that's the main message of the week or the main news item is this massive exploit uh but this is cool from poly market there's a way to to actually trade and hedge against this risk uh here's a question on poly market will this d5 protocol suffer an exploit by march the end of march 31st 2022 and you've got prediction markets for all of these

protocols uniswap maker dow compound so people think there's a five percent chance that uniswap could suffer an exploit by 631st seems really high you could bet against that you know i'd love to see a market like this for bridges especially on the back of this week right right right right five yeah the problem is like i would love to put money into this market and just collect that five percent uh you know winnings because uniswap's not going to get exploited by march 31st 2022 but also

the reason why i'm not gonna do that is because ether i think it's gonna go up more than five percent in that same time frame like i mean i always think that but like so like what's the point of holding usdc to get five percent by march to the end of march when i'd rather just hold eth well it's you know it's free money if you're right yeah but i kind of feel like that like ethan other assets like it are kind of a black hole for all of my available cash too let's talk about this david this is a new protocol release kuiper the kuiper like the belt the kuiper belt um it's a

kind of like set maybe kind of like index co-op but also a bit different uh what's your take on this it's an index protocol of some sort right yeah it's a governance minimized uh like trustless more trustless index protocol being established by some of the guys over at d5 polson uh a few other just independent developers um uh they're trying to go the very very dense uh protocol sync route by just being permissionless and uncensorable uh from day one uh so going to be keeping tabs on that

yeah me too i think it's uh interesting still looking at like how different it is versus index and set and some of those things but it feels like it's a bit closer to the metal deeper in the critical sync as we might say in bankless terminology uh let's switch to raises of the week we got some unicorns we got to talk about here's one analytics is now a unicorn one billion dollar valuation above 1 billion and they raised an amount what do they raise here 69 million 420 000 dollars nice

nice i just love how like dune analyst is a very serious very in-depth analytics platform and then they just go the meme route of raising 69 million 420 000 and i just think it's great we're just making a farce about like money and i'm kind of here for it uh yeah you know krypto sometimes is just hilariously irreverent and um i just love that that's part of the uh the fun for me uh solana their wallet anyway phantom is raising 109 million dollars this is another

unicorn so 1.2 billion dollar valuation pretty cool wallet and i guess a metamask competitor-ish except for one thing it's only on solana at this point in time uh what do you make of this yes metamask same niche as metamask but not a competitor because they're just are in completely different ecosystems i've heard fantastic things about uh phantom wallet and people wishing that phantom wallet were in the ethereum ecosystem at the rate that metamask is printing money via their native swap feature i would imagine that phantom has incentives to

try and penetrate the ethereum market uh but they they might be solano maxis so yeah well i'm not sure and they've talked about deploying to you ethereum um you know i've heard rumor that maybe second half of next year oh but it's kind of they're kind of busy on phantom at the same time so that could keep getting pushed back uh meanwhile metamask is making some moves what do they do this week they acquired my crypto so my crypto is this uh very old reputable uh team which is working on wallet

infrastructure uh led by taylor monahan who's a veteran of the ico era imagine ryan being uh the the founder ceo of an ethereum wallet during the ico era where like she was a veteran of keeping people safe during the ico era we should yeah she was one of the good good guys right yes yes and but also just like imagine like imagine being responsible for like 80 of the inbound support requests for icos because no one knows where else to get customer support so they go to the wallets and that was taylor monahan

her team was like basically ethereum support yeah it really was like that and in the same way that people complain about metamask and how like oh like where did my money go help me help me metamask team and like the metamask was like yo we just are the wallet infrastructure like we don't know where you've sent your money dude um anyways uh my crypto is teaming up with metamask uh getting acquired by metamask to help them build out the metamask ecosystem and we are having both dan finley and taylor monahan on the live stream on tuesday to talk about

this acquisition uh and where metamask is going from here just makes a ton of sense so congratulations to both teams uh looking forward to chatting i do want to hear where metamask is going next uh that'll be interesting conversation so make sure to tune in david this is weird this week do you know ftx is now more valuable than coinbase how how is that possible they're not even publicly listed where do they get all the valuation from it's it's you know private valuation so it's on the private market and so if you add up the private valuation most recently of coin of ftx and then also you add uh ftxus which is

a separate subsidiary which i don't know didn't we talk about that last week is like worth eight billion dollars on its own and you take the cumulative amount it's worth more than the public price of coinbase on the market which like surprised me right does that surprise you yeah it definitely does because like you know ftx is a gargantuan in this space and they're doing a lot more and they move a lot faster than coinbase but they also just don't have the same branding like when people when you ask people like yo like where should i go get my my crypto should i just get a coinbase account like that's always what they ask first