ROLLUP: Solana Wallet Hack | Nomad Bridge Hack | Ethereum PoW Chain | DeFi Tokens | Coinbase ETH Staking

There's just the bridge risk. People understate the bridge risk. And events like this kind of highlight what a mistake it is to understate the bridge risk.

Bankless Nation, happy first week of August. David, it's Friday morning. What time is it?

Oh, Ryan, it's the Friday bankless weekly roll-up time where we cover the entire week of news in crypto, which is always an ambitious endeavor, yet we persevere. On into the frontier, nonetheless.

To the frontier, that's right. And uh I gotta remind you enjoy this roll up with a cup of coffee. David, you said you got a a coffee upgrade earlier this week, and I forgot to ask you about it. So, uh, you know, how's coffee at the apartment in in New York?

You know, coffee's coffee's a tough thing. I I was making my coffee with an AeroPress, which I love. Uh is good. But uh

Doing

it's a little time consuming, it's a little laborious. Uh it's really meant for like camping or just like things when you're in a pinch. So I got a Chemex, which is, you know, definitely like a sta a standard. It's not nothing special. Uh but just like

Kamek?

Yeah, it's a it's a pour over. Yeah. Um more suited to like the particular ground that I have and then the kettle that I have. Um so definitely definitely got an upgrade, but still, still lots of work to be done on my coffee setup. So I'm looking forward to that.

I'm glad you're in better shape. And I know it's a continuous improvement. Just uh Dave's got to remind you to make your coffee or it becomes a beverage. Uh all right. We're not talking about coffee today. We're talking about crypto, and a lot happened as usual. What's uh the first thing we're gonna cover today?

Uh yeah, it's a bad week for crypto this week. Some some exploits. Uh another bridge hack. Uh so reset the clock on that one. Zero days since our last accident. Uh Nomad was hacked for almost $200 million on a smart contract exploit. Uh so we will go into how that happened because it's very unique, actually. The the hack, first of its kind of a hack. Uh, and so we'll we'll talk about that and kind of what it means for the whole like multi layer one thesis.

Speaking of hacks, all right, uh almost 10,000 Solana wallets were just randomly drained this week as well. Oh, yeah.

That's not supposed to happen.

And uh a lot of the week was spent with people trying to figure out how in the world this happened. Uh so we're gonna talk a little bit about that and the uh the conclusion of what happened with this wallet hack. Pretty alarming. What's the other thing we're gonna cover?

And lastly, there's just been a bunch of hubbub, a bunch of drama about the ETH POW chain, the ETH proof of work chain that is probably going to come out of uh the fork. Once we merge, we're going to leave a proof of work chain behind. And so some people are uh descending upon that proof of work chain as a shelling point. Are you, listener, about to get some free ETH POW POW ETH? Please. Yes. Yeah, well, uh I personally I wouldn't get your hopes up. We'll talk about that.

I don't know. I'm a little more bullish on it, so we'll definitely talk about that. And of course, if you like the weekly roll up, you like bankless content, make sure you like, subscribe, rate, and review. If you are listening to this on a podcast channel, on Spotify, especially, you can now get this in video format. It's always better in video, seeing faces along with the words.

Ryan, shall we get into markets?

Yeah, let's do it. What's Bitcoin showing us this week? I'm gonna show some charts.

Yeah, got got some new charts on the screen. Bitcoin, we are down a whopping point nine percent, which I would consider flat. I would consider that flat on the week. Uh started the uh start of the week at twenty-three thousand one hundred dollars, ending the week at twenty-two thousand nine hundred dollars. Flat on the week. Flat on the week.

Just flat on the week. Okay. Neither up nor down. Just tepid. Just flat. How about ETH? Same thing?

Yeah, start of the week at 1640, ending the week at 1620, down 1.5%. Again, I would just consider that flat. That is a flat week.

Alright, David. How about the ETH Bitcoin ratio? What's that looking like on the week?

Yeah, super flat on the week. Down half of a percent at.0707. So nothing.

Nothing.

Nothing.

Market's still deciding. Bitcoin or ETH?

So Bitcoin, Bitcoin ETH blue chips are flat. Tokens, Ryan, up bigly. We'll talk about that later in the show. But tokens, wait, wait, wait. Tokens like DeFi

tokens. DeFi tokens, yeah.

Yeah, they're on the move. Uh we'll we will cover that in what I am bullish on at the very end of the day.

Bring our DPI chart back?

Oh God, I'm not toast I'm not ready for that.

Not not

Specific tokens, please. Yeah,

how about uh global cryptocurrency market cap? Are we at a trillion yet? Yeah, no.

we've been at a trillion for a while. We uh ended last week at one point one four trillion. We are at one point one one trillion. Um so down thirty billion dollars. Again, less if it's less than one tera of downwards, that's flat.

Less than one tera. Wow.

Yeah.

Too soon, dude. Um gas markets. Gas markets in real life kind of suck. Price at the pump. But price at the Ethereum pump still kind of good. Is this nine Gway this week? Did it hit

Yeah.

as low as Gw nine Gwe?

Yeah, you can you can scroll down to get to get that chart a little bit. Yeah, so last week it was keep going down. God, every single time you miss this. There we go. Okay, green, green green chart, green chart and green. Top right. Yeah. So the peak the the average, well, we'll start here.

The the average total transaction gas distribution, the peak was at nine GUE this week, down one GUE from last week. Seven, Ryan, is the number we gotta beat to be deflationary in the merge. And we are at nine.

That's too close for comfort. All right. I can't. That would be so disappointing. But let's take a look at Bitcoin and ETH from all-time high perspective. Bitcoin down 65% from all-time high this week. ETH down 64%. And the difference between ETH and Bitcoin from their respective bottoms is ETH is up 76% from its bottom, and Bitcoin is only up 26%. So uh ETH took a harder crash, harder dip than Bitcoin, but it has recovered much faster. And now it's kind of neck and neck on the percent down from all time high. What do you make of this?

Yeah, I mean, this is definitely the merge trade. Like I I it's very infrequently that I feel like we can confidently say what is make move making the market do the things that it's doing. But right now I have some of the most confidence I've ever had that this is the merge trade. This is what this is. This is yeah.

Yeah, absolutely.

Merge is bullish.

Um, let's look at the other uh percentage tokens down from all time high. So besides Bitcoin and ETH, how about um Binance Chain? What's that looking like?

Yeah, Binance Channel Bine B and B always does very, very well. And uh and honestly, one of the reasons is because it's one of the few tokens that actually has cash flows embedded in it. Like it's kinda got this like manual EIP one five five nine buyback and burn, uh 'cause that's what Binance does with the with this revenue is it buys B and B and burn it.

It's a massive exchange, which is a cash cow in bull markets and bear markets. It's still a cash cow, and that's still sort of backing the Binance chain.

Always has been.

Sorry, B and B chain.

BNB chain. Yeah, so it's it's down 56% compared to Bitcoin and Ethereum down 66%. So definitely better than those two. XRP down 88%. Cardano down 83%. Solana down 85%. Polkadot down 85%. Dogecoin down 91%. Uh Polygon down 69%. Nice. Avalanche down 84%. Uniswap only down 28%. Wow. Uni only down 28%. That's pretty good. That's pretty good.

I gotta admit, David, I look at this chart and I see a little bit like nature's healing.

Yeah.

I mean, this makes more sense to me than the bull market. Um, doesn't make complete sense to me, but like it's still more reasonable than things in the bull market. Um, let's talk a little bit more about uh the bullish ETH narrative. It's kind of going mainstream. You know Joe Weisenthal, right, from Bloomberg.

Big time. Yeah, yeah, yeah.

He uh has a podcast I listen to occasionally also has a a newsletter and in his newsletter this week, Joe Wiesenthal, who's never really been an ETH bull at any point in time

Mm mm.

any of my reading of of of his, he just wrote why ETH is taking over the narrative and why Bitcoin's narrative is busted. And um yeah, I I think this is starting to escape into mainstream is probably the the takeaway here that ETH like surpassing Bitcoin on the narrative front is a is a is a real thing that's happening right now.

Yeah, and there there's two reasons for this. I think if you're inside of the crypto industry, you are bullish ETH. Oh, if if you are bullish ETH over Bitcoin, then it's because of Ether being deflationary post-merge. But if you're outside of the crypto industry, you think that Ethereum is going to be in a better place than Bitcoin because of the ESG like green energy narrative. Um so like it's kind of pick pick your reason, but we got two of them as to why people uh are trending in favor of ETH lately. Ryan, really quickly, I just talked about how Uniswap was only down like 28%, 29%. That didn't feel right. It's actually down 70%. It's not it's down 80%. I just checked on trading video. Yeah, it's actually down 80%.