ROLLUP: Ethereum Absorbs Alt-L1s | SEC vs. Stoner Cats | Mark Cuban's -$870k Wallet Hack

Layer Two summmer is getting hotter and hotter three new rollup ecosystems have joined ethereum just this last week this isn't just another op stack it's not just another arbitrum or ZK sync these are brand new ecosystems coming into the ethereum uh layer 2 rollup fold bankless Nation it is the 4th Friday of September David what time is it uh Ryan it's the bankless Friday weekly rollup where we cover the entire Weekly News in crypto which is always an ambitious Endeavor this week no exception yet we persevere into the frontier nonetheless nonetheless how you

doing this week Ryan I'm good man back from permissionless feeling energized was great to meet the community last week in person um get some proof of human one time a year that Ryan manifests yeah yeah some hugs well handshakes um high fives stuff like that fist bumps yeah I was it was great anyway okay we got some topics of the week David the SEC they're coming after the SBS man munis Ashton cutcher Gary Gensler does not like what they did with their nft project we're going to talk about that what else we got but why this nft project is it because of the

celebrities we'll talk about that coming up after that ethereum collects three new rollups this week two of them previous layer ones now layer twos on ethereum and the third based on salana salana on ethereum as an L2 what is going on with that we're going to cover that and then Ryan what's after that we got coinbase apparently they have a 57 eth work of alchemix is money how in the world did that happen and should they give it back this is kind of a me question legal question moral question

some big questions it's a quandry it's a real quandry we got on today's episode and then speaking of quandries Mark cubin he lost almost a million dollars in a wallet hack not good news we'll tell you a bit more about that David before we get in we got a message from our friends and sponsors over at bridging protocol platform layer zero what do they want people to know layer Zer and Google Cloud have partnered up and they are ready to bring the interoperable cross-chain apps of the future to you uh this is what they want to do so of course what what is layer

zero it's a simpler simple modular framework for applications to use the layer zero smart contracts that exist on 15 different chains and then Google Cloud as the default Oracle between these different smart contracts are the service provider for passing messages so that apps on different chains can start to be woven together so Google cloud is the latest option of oracles for layer zero is serve as the default uh but of course layer Z if you want to pick your own Oracle that is something that you can apparently do uh so visit layer

zero. Network for more information uh if you are working in the world of cross chain interoperability cross chain we're moving from this world of cross chain to a multi-chain which is different you deploy once and you got it across many different chains so uh very cool stuff there David let's get to the markets though speaking of cool stuff how we looking on bitcoin price is that cool I know cool Stu not cool not cool stuff yeah Bitcoin lost a $100 in the week which isn't that crazy no that's that's not that crazy at all I mean it's not cool but it's not like bad not cool yeah it's something in the

middle uh how about eth it's worse uh definitely not cool down 3% start of the week at 1640 currently at 1590 I think I saw a low of 1575 uh not not cool it's not cool thanks to Kraken for these charts though and uh if I press reload does the price go up at all I should try that you should try that a few more times how many times do you uh do that per day just like you know if you don't like the price you just reload keep reloading never works for me that only works in the B market where you legitimately reload and all of a sudden you're like you know a few bits more more wealthy

there are those days do you are those days yeah distant in the past had stupid large green candles man we haven't had a stupid large green candle in a long time I miss them I'm starting to miss them absolutely deprived of dopamine man double digit days right where you just like you look at the charts and it'd be up like 10% you look at them again it' be up like 15% you look at again it's like up 19% you look it again is down to like back to 12% it's just the whole day you go into work and I'm like what am I doing here I remember I remember my

first cycle I'm not saying it's healthy okay I'm just saying no no it is it is bad for your mental health but it's temporarily good you know just it's just a drug you know it's just like cocaine oh wow uh yeah I wouldn't know anything about that David but maybe maybe that's for a different show here's your Tweet speaking of tweet eth has spent almost 500 Days between 1,100 and 2,200 that's 2x bottom and top compared to 2017 eth spent 700 days between 80 and two uh and 320

that's 4X bottom and top okay it's getting dangerous because David is charting so uh tell me about the chart man what's your ta analysis here uh I mean it's just a comparison of time right it makes sense that in 2017 to 2020 that bare Market that it was a Forex bottom to top range things were less liquid uh they were lower Market cap that's just the nature of markets um and now 700 days that is the thing I'm comparing here the thing I'm trying to get Apples to Apples so 700 days was the bare Market of old uh today we are

passing 500 Days of this current bare Market uh between 1,100 and 2,200 so have we paid our dues is that what you're telling me or we got 200 more days to go yeah I think the left curve bell curve take is we got 200 more days to go um also I will say like we're at the top of the closer to the top of the range so like we're ether's falling down to like 1575 right now like 1575 and 100 1,100 these are there's a gap there um so in that 200 days like not necessarily clear skies um 200 days to

go would put us in 2014 right maybe like mid 2014 or Sorry God 2014 2024 is what I meant the wrong four um but what if this cycle is a little bit longer than the last cycle isn't there some uh truth to the idea that every cycle a little bit longer lengthening Cycles how about that um Theory correct yes that that length Cycles have tended to lengthen out a little bit um there's also the conversation of like well was it even crypto's foure cycle or was it the

liquidity in the macro fouryear cycle um lots lots of variables here uh I think just like this stupid brain take is like yo 500 Days last time was 700 days you can start to see the light at the end of the tunnel you don't have to think too hard about it maybe it's 300 days which is yeah maybe yeah 300 days more maybe 400 maybe just 200 maybe 150 right we're in the range we're in the zone let me ask you because I feel like at this point in the market we are our most sober ever I know you're were talking

about earlier but the truth is you and I are very very sober this is the very depressed range like no one's getting excited no one is like happy have you seen how much fighting there's going on on Twitter right now everyone's angry everyone is angry and irritable it's because we've got no serotonin in our system we've got no dopamine is that why okay um well I want to ask you in this very sober moment that you're in MH call the top next cycle top okay 300 days away or whatever eth price give me the

top ,000 wait wait what5 to 17,000 $15 to 17,000 that's a big bump from here yeah so you think we're going 10 15x yeah wow I mean it's a Prett sober come down from like the last call last Cycles range which we called for 10K and we got not anywhere close yeah I guess last Cycles range you know it was really hanging this Zone was like um Anthony saano was calling for $10,000 when ether was $100 which is like he was the I think he

was the B first big like person to like put a very confident flag in the ground saying like ether's $100 I'm calling for a $10,000 eth K I mean we didn't get to $10,000 we got to $5,000 but like in a log logarithmic term Anthony was right I think my so my take on that is um 10 to 15K this is pretty close but above 10K cuz the theory is it's a lengthening cycle maybe but it's also like a dampen like we're not always going to get like

yeah and what was last cycle go I'm hitting cell at 15,000 by the way are you you sell eth well how dare you yeah at some point is that allowed is that allowed on the bankless program are you owed to sell eth sure at 15,000 yeah just all of it you're going to I'm out see you later yeah I'm out job here is done bank is closed we got you to 15K see you later close for business you're you're on your own now no you know here's a secret about my co-host David he's addicted to the podcast you know almost as much as I am

so we we'll just change podcasts anyway okay wait do you have a top call for Bitcoin or do you not care as much I don't care below 15K 100k about 100K 100K Bitcoin yeah sounds totally POS yeah shooting from the hip ratio anything on the ratio this week it's down 3% and total crypto market cap we're above a trillion almost 1.1 trillion Not Dead Yet close though um David you want to talk about the FED a little bit can you do it I can talk about the FED sure um the FED leaves

rates unchanged that was the news of this week so you know the rate of uh 5.25 to 5.5 mhm they were scheduled to maybe think about changing that uh rate now and they decided not to change it so there's no change this is the chart over time David all the way from the 1970s fed fund Target rates and 19 go old 1970s it was between like 8 9% and then by the early 80s you remember Paul V vulker I mean we don't remember him but he existed he's a name that we know I

did not exist when he was in his leadership position well way before your time David he uh heed yeah no I didn't but he he increased um prices sorry market fed fund rates to 19% all right it came down insane look this is the story of the 90s it was just down and then the story of like post 2008 it was like at zero it was very very low and now here we are back to 5.25% I this when I look at this chart it does not look organic at all I don't know what to

make of it it's very controlled yeah it's not an organic chart for sure yeah yeah yeah this does kind of look like the interest rates Last Stand it's like this is the first time interest rates have gone higher than they previously were like were marginally higher than the second second to last most previous um interest rate uh and but that's just because we just did helicopter money right it feels like you know interest rates Last Stand before well I mean I don't know as inflation does increase Capital controls go up interest rates might might go up may maybe it does get worse I don't know well this is what the

FED projects is one more increase this year two cuts in 2024 so one more increase and then we start cutting in 2024 again these are just projections uh and also the FED does not expect a recession if that was on your uh weather report and GDP will grow so uh we'll see how that works out that's the prediction coming down the pike for the FED they not they're not expecting a recession and they're expecting GDP to grow yeah okay so they're expecting only good things good things good things my

cynical take is like yeah sure like you know I mean but it hasn't been catastrophe a lot of people calling for catastroph remember bology you know 1 million Bitcoin and all the banks are going to fail hasn't happened yet yeah yeah yeah you're totally right like when we were doing all the micro stuff a little bit over a year ago like everyone was giving us Doom and Gloom and it hasn't been terrible KY scanon who I think has been the most tapped into this has called this A vibe session so people feel worse than the actual fundamentals of the economy people report negative

affect about inflation and their prospects but the actual metrics of the economy don't support that alignment of negative sentiment towards the economy so she's calling it a Vibe session that's really interesting yeah yeah I don't I'm sure there's theories on what causes that but we don't have time to get into them here's something we do want to get into though David a question for you how many Americans do you think own own crypto right now give me a are 330 million Americans or 350 million Americans uh that includes all the kids you know so all the kids uh

five 20 million 10 million more five that according coinbase 50 million 50 million uh 50 million crypto owners um let's see what the stats are here yeah coinbase says one in five Americans own crypto right now and that is 5X more Americans than own an electric vehicle you know that that is a weird stat I mean I get what they're saying they're saying it's a weird step but it's a cool

step because they're putting they're putting the crypto users into like political cohorts so here's another one um 3.5x more Americans own crypto than belong to a trade Union okay there 2.75x more Americans that attended an NF uh this is 2.75x more Americans that attended an NFL game SE so bigger than the NFL tribe too bigger than the football tribe this is 2x more than American families who hold stock that's unbelievable I can't be right who

directly hold stock is that an important h maybe who directly holds stock so not through mutual funds okay who how I don't even know how you directly stock and this is more Americans than use Uber every month or R crypto is more popular than Uber that's kind of cool that's what coinbase says okay here's a question to you how many at least um this is on ethereum specifically how many addresses hold usdc how many ethereum addresses own usdc yeah uhh um I'm going to call 1.2 million wow pretty

good 1. wow it's not exactly relevant to what we were talking about but I think it's a nice metric to just to talk about well do you want to know what the spread is in terms of demographics here so I said one in five adults own crypto and uh 75% of them have an income less than 100K right so this skews under um you know six figure salary uh 60% are gen Z or Millennials okay which probably not surprising but also like 40% are boomers and Gen X yeah yeah uhhuh um 41% are

racial minorities and 63% of crypto owners agree that the system unfairly favors powerful interests um yeah I'm not surprised about that I feel like that should be higher so coinbase is basically channeling this into like a political motivation it's basically saying hey we have a cohort go out vote um download the app look at your candidates and uh you know get out there and this is a message is much to crypto users as politicians like we're a powerful cohort and Force if we choose to use it the one thing I would say is I

wonder wonder how many of those 52 million Americans feel kind of down bad about crypto moving on what I mean next moving no how many of them are like I own crypto and I'm proud of it and I can't wait to tell you about it no they're probably own crypto and I'm a bag holder they're probably like yeah mistakes were made at least 202 at least 50% uh can we move on some happier news I got some happier news we have an anniversary to celebrate ethereum's first merge anniversary so the first anniversary of

full proof of well not full proof of stake proof of stake ethereum happened on Friday September 15th uh so so here some numbers since the merge almost a million ether 980,000 ether burned 11.6 million ether staked and 362,000 100,000 validators uh so pretty cool uh yeah congrats to uh the ethereum for having your First Merch anniversary you know what is the this is the uh third anniversary of September uh September 2023 Ryan what bankless

LLC oh wow when we started we were like H we got a podcast podcast is going well let's put a ring on it yeah yeah let's register in the state of whatever Virginia Delaware something like that yeah some stupid Nation make this real yeah I always forgot about that yeah well happy anniversary to you then on likewise bankas likewise um but let's not overshadow the merge okay the merge is a little bit more important um but okay I I got a a flip maybe some bad news it depends on how you interpret this byy by ultrasound money David it's ultrasound money

forever yes forever this was ethereum's first inflationary month I think we're talking a long the month of September or the last 30 days or something um so some history from October 2022 until now there's only been one month in loss there's only been one month where ether the asset was not ultrasound money overall there's been a gain of 414 million in uh 201 23 but in September 2023 ethereum block SPAC has only had

one single profitable day so in September so far there's F uh 15.9 million in losses David does that kill ultrasound money meme are we gone it's totally dead what are the reasons for this uh it's the bare Market it's just like onchain activity super low no one's minting new nfts no one's doing any sort of djen stuff and simultaneously layer 2 activity is up only so I think the layer two stats the activity on all layer 2os are 6X versus the ethereum layer one so

like this this is what is expected from the layer two rollup Centric road map thesis we take ethereum's economic activity and we move it onto the layer twos so I don't think there's any coincidence in in looking at the aggregate ethereum layer 2 economic activity and the reduction of gas uh of ether being burnt on the layer one this is this is what you would expect yeah layer twos are very healthy this is the highest we've seen at the scaling Factor 6.21 this week David we have a question later in the episode at the end of the episode about whether this is actually bullish or bearish for ether the asset

so we'll talk about that what else we got coming up coming up next we have a very important part of the answer to that question Ryan is always going to be inside of the world of rollups Layer Two summer is getting hotter and hotter three new rollup ecosystems have joined ethereum just this last week this isn't just another op stack it's not just another arbitrum or ZK sync these are brand new ecosystems coming into the ethereum uh layer to roll up fold so we're going to talk about all of these we're also getting our first privacy enabled layer 2 so one that's already in the ethereum ecosystem but this one private uh tons of things to talk about

and Mila Kunis and Ashton Kutcher everyone's favorite nft celebrities in the hot seat from Gary gendler uh there's just a lot so much more to talk about even beyond that uh all of that is coming up and more but first I moment to talk about these fantastic sponsors especially Kraken our preferred crypto exchange for 2023 if you do not have an account with Kraken consider signing up in the show notes below Kraken Pro has easily become the best crypto trading platform in the industry the place I use to check the charts and the crypto prices even when I'm not looking to place a trade on Kraken Pro you'll have access to Advanced charting tools real-time Market data and lightning fast

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brand new high performance ethereum layer 2 built using the op stack but uses igen layer's data availability solution instead of the expensive ethereum layer 1 not only does this reduce mantle Network's gas fees by 80% but it also reduces gas fee volatility providing a more stable foundation for mantle applications the mantle treasury is one of the biggest Dow owned treasuries which is seeding an ecosystem of projects from all around the web free space for mantle mantle already has sub commmunities from around web 3 onboarded like game s for web 3 gaming and bybit for tvl and liquidity and onramps so if

you want to build on the mantle Network mantle is offering a grants program that provides milestone-based funding to promising projects that help expand secure and decentralize mantle if you want to get started working with the first dowed layer 2 ecosystem check out mantle at mantle. X Y and follow them on Twitter at zxm we got a narrative watch this week are all the chains moving to ethereum are all the chains becoming layer twos as a question we're posing this week there's been some maybe evidence of movement this week or at least support ecosystem I think we got

three examples here what are we talking about Aster network from polka dot Kanto from Cosmos and Eclipse not necessarily from salana but using salana technology these are all brand new ecosystems coming to launch different layer 2os powered by different Technologies all on ethereum so asther network from polka dot will launch a ZK evm layer 2 powered by polygon's technology uh and so a quote out of sand deep here Aster is the leading blockchain of Japan he says which is probably why I'm not familiar with it uh after launch it quickly

became the most notable par chain in the polka dot ecosystem focusing on owning the Japan Market uh Japan with a large entertainment and gaming ecosystem has the potential to become one of the biggest hubs of web 3 in the world especially with the most crypto crypto-friendly regulatory environment jealous so with the polygon cdk the chain development kit this is the op stack of polygon uh Aster will be able to build a ZK powered layer too with a trustless bridge straight to ethereum this is the polygon subnet uh the polygon SDK cdk uh so this is uh polygon

taking a win from polka dot so that's the first one you ready to move on to the second one yes yes but before uh we do that so they're taking a win from polka dot I would say in a way but also not so I was corrected by the pokka dot Community Aster is not totally migrating pokka dot so they're going to actually maintain their Aster par chain on pokka Dot and this is like an expansion move yeah I guess Two Chains I don't know um I that that that doesn't under in my understanding of and you know I I don't

know how this will um uh change long term right whether you know they're going to have to pick one chain or the other but um yeah that's what the the founders reached out and said to me after I I tweeted something super salacious which you could we talk about that tweet later anyway that's my caveat okay but one polka dot and ethereum are both trying to be settlement layers one activity activity from this chain is has to pick one like one chain you can only be ens Shin to one chain one chain to rule them all where youon the dark lord

can't you can't you can't be poly in you there are no poly chains this is polygon though you tell me I can't be poly polyon settles to ethereum okay I I will have to get confus I will have to go get my learn on and we will talk about this next week cool what's the next one though you know that one a bit better Kanto yes Kanto uh it was previously a cosmos chain it was uh Scott Lewis's project it's the uh what is it the contract secured Revenue model as a layer one now moving to a ZK layer 2

poly powered by also polygon's chain development kit so polygon taking some dubs this week uh so uh Kanto from a layer one to a layer two um and my understanding by the way in the size of this Aster is about 500 million uh total locked value not necessarily that's all you know migrating but that's a lot um Kanto is 40 million in terms of market cap it was it was way up there and then right it had it had like a it had like a moment and then it went it died back down so additionally with this pivot into a layer two on ethereum uh they're also pivoting into the world of real

world assets I know Scott Lewis is very uh bullish on real world assets and so where are they pivoting from David it's not it's not um it was a cosmos train wasn't it yep train Cosmos train yep yep yep yep okay ready for the third yeah Eclipse we did a show on Eclipse uh with the founder Neil this week and so this is the salana virtual machine inside of an ethereum Layer Two uh but not just salana technology here uh we are using Celestia for data availability and then risk zero for fraud proof so we have

ethereum for settlement ether for gas and payment tokens the salana virtual machine Celestia for data availability and risk zero for fraud proofs what what the hell is that it's a platypus chain you had a meme about that I don't know if it made the agenda David but yeah it's in there uh it's further down oh no I don't see in the agenda uh we'll get it sorry uh it's on my Twitter it was a good meme it's the it's a Family Guy what the hell is this meme the with four different animals all kind of like slapped together uh okay so why salana

VM why the salana virtual machine like I I don't even think ethereum people will argue that it is just a great piece of technology the evm is custom built to do certain things it's meant for security it's not meant for execution it's also made in the year 2015 it's got improvements but it's just not built from the ground up it's single threaded rather than multi-threaded right so multi-threaded um parallel uh parallelization is what the svm's got it's also got localized fee markets to help with hot spots is what they call them where people are just using the same state and that needs to be jacked

up in fees but nothing else does um so so now the salon virtual machine that piece of technology is now a uh roll up on ethereum a layer two on ethereum uh Celestia for data availability just because it's got more bandwidth than ethereum and then uh risk zero for for fraud proofs of course um so there I thought the episode that we did with Neil was extremely informative uh I think this is a very strong validation of bankless thesis where uh I remember an old 2019 29 tweet 2019 tweet of mine

wow was just all about how like ethereum is gobbling up all useful bits of technology and this is one of the main um reasons why I've never been able to fully understand the investment thesis behind Soul because soul and the svm are different pieces of technology and now the svm is settling on ethereum so if salana is as good as it purports to be as an execution layer well that can be settled on ethereum and so now it's Eclipse versus salana in my perspective yeah there's a full episode on that and

by the way you know I'm I'm clicking through it right now is this what I look like the whole freaking time when we interview people this is why I tell you to sit up every single time we start recording you're super low I'm look at that face and your camera sucks it's just like boring into the guest like that's not Hospitality at all it's just that's just a particular one particular frame really let's go to something else if if you if you updated the camera that I gave you the camera makes you smile more oh really yeah I'll get to that David I'll get right on that it's only

been shipped Ryan a camera almost a month ago and all he has to do is take the old camera off and put the new camera on and plug in the H and he hasn't done it yet it will get done uh next rollup maybe I make a promise a public commitment to the bankless community next rollup I will have a newly improved uh camera and you can you can hold me accountable on that you wouldn't you wouldn't fail the bank Nation would you I would never do that would never do that your never disappointed the bank anyone everyone talks about how good your skincare is and so I think people

are like they would love to attempt to see the pores you know maybe maybe we can get closer we'll zoom in we'll zoom in um this is my comment from it yeah that was a weird segue whatever weird weird segment hope you guys enjoy the rollup um this is my comment on it the largest chain from polka dot just moved to ethereum that's asra the largest public common chain uh from Cosmos just became a polygon valum validium uh it's Kanto and I hear the world's first salana virtual machine svm layer 2 is dropping uh ethereum rollups are eating the the world that's my kind of Nom Nom

eth sort of centric type uh take I guess uh I'll amend this a little bit cuz Aster didn't move to ethereum they just opened up a new residence I guess I disagree with that but I need to learn more Kanto definitely moved completely moved Kanto is now in a and uh there's some debate there's some debate in the community as to whether the salana virtual machine deploying as layer 2 is actually bullish for salana or bearish for salana I mean there's there's a question of relative to ethereum and

there's also a question of relative to other layer ones of course like you and I have our take on that but before we get to kind of like our take on that uh we should hear out some members of the salonic community what's their take on that David yeah so this is Mt who uh you know does a salana podcast also the founder of helium on on salana he says seeing some awful takes about Eclipse an svm based eth layer 2 and how it is quote bad for salana uh please don't fall for such non-serious comments this is extremely bullish for salana this is open- Source software is as if as great

as we say it's as if as great as we say it'll be much more concerning if it weren't being adopted so he's saying like this salana the svm is so great it would be weird if it wasn't adopted and it is being adopted so that's validation about how great salana Tech is sana's bottleneck has never been Tech it's been M share and now with maker foring salana and eclipse in an ejective adding svm rollups you can see salana is gaining share not only does this open the door for more developers it also der risks those wanting to build on Salon because now they can deploy in multiple environments versus just the salon layer

one layer twos are inevitable ethereum is isn't going to just stop stop working on them because you disagree with their road map so he's talking to the salon people here kind of in the same way we talked yeah but he's basically saying the point is that um any propagation of the svm is good for salana because it gets the svm into more developers hands more ecosystems and then they kind of come back to salana so so um that's certainly a take um here's another take who's this Frankie yeah I I don't know this Twitter account but they write very well in the short of the tweet that this is and I love history and so I think

this is this I agree with this a this is my perspective as well um he starts a tweet titling svm rollups and the Elgen marbles Elgen Elgen marbles in the early 19th century the Earl of Elgen removed a collection of Greek sculptures from the parthona Justified the removal saying that the placement of the marbles is in such a prestigious Museum validated their artistic value and indeed to this day the Elgen marbles are displayed in a br in Britain a testament to Greek

culture and Artistry yet every time a museum ticket is sold profit flows back to Britain not to Greece and 200 years later You' be hard pressed to find someone in Greece who thinks that this was a good trade this is my perspective what does that mean for people who aren't into like the metaphors and historical signicance of this like pleas please link this yes so like I said uh I would say even everyone in all the developers in ethereum the the debate between ethereum and salana is not about the evm