EIP-4844 chat, Coinbase Smart Wallet and more - The Daily Gwei Refuel #741 - Ethereum Updates

Transcript

hello everyone welcome to another episode of Del refuel where recap latest news in etherum ecosystem I'm your host and today the 4th of March 2024 all right everyone let's get into it so a little bit of drama over the weekend with regards to the eth ETFs now it all stemmed from this one comment from Eric buunis here who I've spoken about a bunch on the refi before I've been following him and his uh takes about the BTC spot ETF for probably over six months now and he's been one of the really great uh kind of analysts at be Bloomberg that's followed the ETFs for quite a while now and I've really always respected his opinions on things but unfortunately he doesn't seem to hold eth in very high regard as he put out a tweet replying to someone basically saying that the ETF wasn't going to get

approved Eric said uh yeah James and I will have James safeer the other ETF analyst that I've been talking about a lot on the refuel um and I will have formal odds out soon but to be honest and no offense to the E people but this is such Small Potatoes versus spot BTC ETFs it's like the opening act coming on after the headliner using Gen X bands it's like Sister Hazel trying to follow navana now I'm going to show my age not in the I guess like old sense but in the young sense here obviously I know who Nana is but I have no idea who Sister Hazel is now I think this analogy is really silly um and I quote tweeted Eric and I said I understand why people believe the spot e ETFs could be denied and I think some of the arguments are

sound but to call eth Small Potatoes is such a bizarre take eth is onethird the market cap of BTC that's not small potatoes and the ethereum ecosystem is absolutely massive and we all know that guys like I'm bridging to the choir here but we all know that but the market cap kind of metric is what I find most bizarre because you expect something that's small potatoes compared to BTC to not have onethird of its market cap and even if you go back even further and look at U what's E what e market cap was when um Black Rock filed for a spot e ETF for BTC it was around the same as what btc's market cap was back then and that was a tweet that cus yessi put out and he pointed that out on Twitter uh basically that e market cap was essentially the same size as Bitcoins

was when Black Rock filed for an ETF for BTC so yeah I think that got a lot of people a bit triggered that he was calling eat small potatoes I do think it's got comes down to like an education thing I do think that inherently ethereum is obviously more complex to understand than Bitcoin I think that when it comes to these guys who traditionally follow trafi um they've been following Bitcoin because of the ETF stuff and now for them to Conta change to follow ethereum requires a pretty big commitment I think because to learn about what actually makes ethereum and eth valuable you have to spend more time than I think within the Bitcoin ecosystem because within Bitcoin there's that kind of meme of oh it's digital gold right uh and it's worth like a trillion dollars whatever it's going to replace gold so on and so forth like

that's relatively easy whereas with ethereum like people like to use analogies like it's a you know it's a digital oil or something like that but that doesn't even scratch the surface of what eth is as an asset and and in no way does it describe what ethereum is because the Bitcoin Network at least until recently with the ordinals kind of stuff and and Tapo and stuff like that the Bitcoin network uh generally just cannot do what ethereum does it's not the Bitcoin network is not viewed as something that brings utility to BTC the asset whereas ethereum as a network is all about utility right it's all about driving value from the network to the asset whereas traditionally Bitcoin has been viewed as a kind of just an asset Network essentially so it's just it's a network that just secures BTC it let you transact BTC but that's all it does it

doesn't really do anything yet but obviously that's changed a bit recently but still like the people that are looking at BTC as an asset and calling it digital gold they're not paying attention to any of the stuff happening with ordinals right and and and tap rude and and kind of like BRC 20s whatever they want to call them they're still focused on that easy narrative whereas with ethereum it's it's a completely different game right so I actually replied to Eric and I offered to get on a call with him to educate him obviously I'm not going to be able to educate him on one call about what and what makes ethereum great but I really do think that just that that massive Gap in education there where people especially if they're only exposed to the Bitcoin are talking points they seem to think ethereum is so much smaller than what it

actually is and they seem to get very confused about what ethereum is because a lot of bitcoiners espec particularly the Maxes particularly like the laser eyes right they just they just Call eth a scam they just Call ethereum a scam and they put out all this absolutely false information out into the wind so if you're someone from the tradire world and all you're following is bitcoiner talking circles or bitcoiner kind of content then you're going to get the wrong idea about ethereum and eth so I really would love to jump on calls with these people and just explain to them I could do it in 30 minutes like I you I don't it very long but I can do it in 30 minutes I can explain to them why eth is special as an asset why ethereum the network is special as an asset and why

those two things work in harmony to drive value to each other like I can you guys know I mean after listening to me for so long on the on the refu you guys know I could do that right I'm not trying to like toot my own horn but I would be love to be given that opportunity but but typically I'm not given that opportunity I'm not really in those circles at all and I don't really get approached by those people and I'm not someone to go out there and cold DM people or anything like that I'd rather they come to me because that means they're coming to me wanting to learn rather than me going out to them and and and cold daming them and basically I wouldn't say forcing them into it but basically if they do want to do it with me it's more that I initiated it so I'd

rather them initiate initiate it I'd rather them have the Curiosity about it to to learn because at the end of the day like to learn is to be curious and I think that that's what's helped me a lot with my kind of learning is that I'm always curious about things going on within the you know crypto ecosystem and even outside of it obviously crypto isn't the only thing I try to learn about but still I could I could educate and I could basically dispel any fud that they came at me came me at me with especially stuff that they've heard from bitcoiners but that was kind of one tweet there but then there was another one from Eric as well where he replied to Nate Gerra here who actually said that he thinks people are underestimating the eth ETF and how much activity it will generate But Eric

replied and said yeah I'll stick with my sister Hazel met for which is NOT saying eth and Hazel aren't popular but not in Nana's League uh they sold they being um Sister Hazel sold 2 million albums to Nana's 75 million uh BTO bit which is the ticker for Bitcoin Futures has $2.5 billion AUM whereas e e which is a ticket for eth futures has $25 million of a AUM and that's why it's hard to get as into its approval process versus BTC I was actually very surprised by this tweet from Eric like he should know better than this honestly and the reason why he should know better than this with regards to why the eth ETF inflow is much less than the BTC one is because of the obvious reasons that I actually

outlined here and if I'm outlining these he should definitely know about this because I don't pay attention to this stuff as my full-time thing guys like all of this ETF stuff all of this trafi stuff all these kind of like Futures on the CME and Futures ETFs and like that's all stuff that I've only been really paying attention to the last you know maybe 6 to 8 months uh but whereas these guys I mean he's a senior ETF Analyst at Bloomberg like he knows this this is his bread and butter or at least I thought that he should know this and I quote tweeted this again and I said this comparison makes no sense BTO or Beto launched at the Pico top of the last cycle an e launched in the middle of the BTC spot ETF race meaning that people assumed a spot e ETF would be coming

next the better comparison here is gbtc and E which are grayscales products where gbtc was $30 billion assets under management pre-c conversion so pre the ETS being approved on Jan 10th and E was $7.3 billion on top of this why would anyone buy the E Futures products when they can buy eth e at a deep discount and bet on the conversion of eth e into a spot eth EF like all of this stuff is not rocket science like this is just stuff that's already well known and the e was trading at at a pretty massive discount on Jan 10th and it's still trading at about a 10% discount and is at $10 billion AUM right now um gptc has obviously had a bunch of outflows because of the fact that it got converted to a a a proper spot ETF which means people can sell um and I expect

that to happen with e as well but the point I'm trying to make here is that like that's the real comparison that's the actual comparison not the the Futures comparison that just makes no sense to me and then uh Ricky Bobby actually replied to me and said in even better comparison are the Canadian ETFs um the BTC Canadian ETF has $2.5 billion in AUM and the eth one has $500 million eth holding at roughly 20% of the BTC AUM for quite a while uh and the reason I used the gray scale products because I was trying to take a US Centric view here rather than go out internationally but that again is another great example here uh of the fact that eth not small potatoes eth will get in my opion once the spot ETFs get approved eth will get massive inflows I I I I truly believe

maybe not as much as Bitcoin because I mean inherently Bitcoin is just a big asset as well right and inherently it went first there was like this pent up demand because they've been trying to get a BTC spot ETF for a while but I do still think eth is going to be huge I do think the inflows are going to be huge I do think that the issuers are going to be educating their Their audience about this as well educating their clients about this you know Black Rock isn't putting their weight behind ethereum and eth just to launch the product and they're not doing anything with it no they wouldn't they wouldn't do that it's just dumb it's dumb it's a dumb business move and also Larry thinkink the CEO of Black Rock went on uh I can't remember what what mainstream media it was but he

went on there and did a video interview where he basically said that uh black is really bullish on tokenization where do you think they're going to do tokenization guys they're not going to do it on bitcoin right they're going to do it on ethereum like and and they're getting the ETF as the first I think he even said that the ETF is really just the first step get the ETF in then do a lot of the tokenization stuff they want to do on top of ethereum or using ethereum technology or working with ethereum um kind of uh players to to do that so to say that e is Small Potatoes when you have Larry thinkink the CEO of the largest asset manager in the world talking about tokenization which you can't do on bitcoin like I'm sorry guys I know that there are technically tokens

on Bitcoin now with ordinals and things like that but there's so so limited and they're just like completely different to what you have on ethereum and and ethereum has all the infrastructure already for this so it's going to happen on on ethereum and ether's an asset as I said it's onethird the market cap of BTC it is not small like you can tell I got really annoyed by this because Eric should know better than to say these things like I don't know what happened to him over the last kind of six months like if he got infected with what I like to call Bitcoin brain where essentially you focus too much on bitcoin and you lose sight of the fact that the ecosystem is much larger than Bitcoin um and then obviously as I said if you're in Bitcoin or circles you hear constantly about how ethereum is bad eth

is a trash asset eth is a shitcoin you know what's the supply cap of eth like all this dumb fud that's been refuted a million times but if you come into crypto as a newbie this isn't old fud for you this is you've hearing this for the first time and these people are saying it with confidence so you start kind of believing it because you don't know any better and this doesn't just happen with uh you know on crypto Twitter it happens everywhere there are so many YouTube videos guys that I get linked and people say look at this man like there's so much wrong in here hear about ethereum and I look at it I'm like how is it so bad like it's actually terrible I remember just the other week um one of the popular YouTube uh channels was saying that Denon was going

live on I think it was like Feb 8 or something but they got confused because Denon was not going live on Fair bath obviously it was the core devs were having a call to organize when they uh when a main net date would be when denu would actually go live like how do you get that wrong like it's not even a hard thing to understand like it no one said anything about Den going live on that date right so when you take all that together especially me as an educator it really annoys the out of me like how people can just have such wrong information and put such wrong information out there and even and obviously I don't think this YouTuber was doing it in a malicious way but by doing that they just continue the cycle of bad information right anyway I've ranted enough about that but I really

thought that was worth focusing on cuz I got a lot of questions about this when people saying look Eric's really bearish on the E ETFs you know does that mean they're not going to get approved or does that mean they're going to you know not have much inflows I just honestly don't think Eric has a good raid on ethereum and eth at all honest I don't think he has any ra on it to be honest and the fact that he's applying on it probably shouldn't be if you don't have a read on it in my opinion but obviously he you know the Trad fight ETF world is what he knows obviously he's probably talking to people who are like not really talking about ether ethereum it's all about Bitcoin right now because that's where the attention is due to the ETFs that's fine but that's an

opportunity there that means you have the opportunity to front run these people because eventually they're to learn about ethereum and eth because the black rocks of the world and the other asset managers are going to be educating these people about it right we have reports like the ethereum investors Club report that I just showcased the other day that you can actually pass on to these people like betting on the uh I guess like people not learning about ethereum and not not uh kind of researching ethereum is the wrong bet to make and it's the wrong bet to make about a lot of ecosystems I believe but anyway as I said I think I'm leaving it there today on on that one not not today there's a lot other stuff to get through but I think I'm leaving that one there cuz I've already spent a lot of time on

it but yeah just a little bit of a classic sassle rant there because that got me quite uh ticked off over the weekend all right moving on to some more positive stuff so uh eth Denver obviously just wrapped up uh over the weekend uh people are heading home uh you know people had a lot of great uh great times there I spoke to a few people the sping I couldn't make it honestly I'd love to go but it's just so far away and last time it just got so sick and got kind of got PTSD from it but anyway uh the reason I'm bringing it up is because Jasper here who you guys know from the Rocka poool Community uh tweeted out then that Houston the next Rocka poool upgrade the next major rockol upgrade will be going live on May 6th and brings with it fully onchain

voting and much better support for institutional staking partnership so as you guys know Rocka poool has a I I think it's three there's at least two upgrades there Houston and I think Saturn and then there's a third upgrade around the tokenomics I don't I think the tokenomics might be getting rolled into Saturn but you guys know that Rocka pool is undergoing a pretty substantial change uh over the next I guess you could say 12 months from here uh probably maybe a little bit longer than that but pretty substantial change with regards to how the protocol works you know scaling up the protocol how the token works the token's actually got undergoing a very very big change uh they want to make it so you don't have to hold RPL to stake which is obviously a huge change uh for the rocker pool model here um but it's great to see that

Houston is already going live in may like that's not far away guys I mean we're in March that's that's 2 months away now 6th of May I mean it's 4th of March right yeah two months away until May uh so so looking forward to that but you just wanted to put that on your radar that that's going live then don't think there's any date around Saturn or the tokenomics changes just yet but if you want to follow Rocka poool I mean you just follow Jasper honestly Jasper and wack actually as well uh and um and Pat who does uh the weekly orbit episode with whack if you follow those three guys you're going to keep up to date with Rocka poool that's for sure uh and obviously the Rocka poool Discord Community is still as active as ever if you're in there you know all about that

but yeah if you want to keep up with Rocka pool follow jasa follow wack follow Pat and go watch wax show obviously rocker Fuel and also the weekly orbit that he does with Pat all right so ewave has an update on their I guess like their sanki diagram is that is that the term for I think it's called a sanki diagram where they show where the eth has flowed since Genesis uh across the ecosystem so obviously the picture on Twitter is a little bit small here and compressed and I've showed this before but basically you can see from the left hand side you've got the Genesis wallets and then you've got the mining rewards of e and then you got the staking rewards split out and then what ewave has done is basically visualized this in this diagram to show you where all of this

eth has flowed over time now I can't see the smaller bits here but as you can imagine it shows eth going into defi into layer twos into staking protocols like liquid staking and obviously reaking uh and they have a whole thread on this uh basically uh I guess uh going through and breaking down what what what everything what's happening here and they've also got a list of sources that they used too so if you want to go check out out all the sources you can I'll as I said I'll link this thread in the YouTube description below for you to check out uh and actually there's a live version I I should have started with this maybe because this will give us a better view so there's a live version of this diagram very an interactive version um which I'll link in the YouTube description uh below because the URL is

too much to say on the on on the refill here but yeah you can see I guess if you start from the Genesis wallets you can see the total supply of ethereum flowing into things like centralized exchanges you know where it's gone from there uh Stak obviously a lot went into Lio but then other liquid staking protocols layer 2os you can see which ones have got the most eth in and then all the way down to like you know liquid reaking you know what what's cool about this is you can follow the eth from the total Supply it gets staked but then it gets staked with liquid staking and then from there it goes into you know obviously Lio but then other liquid staking protocols like Rocka pool and swell and so on and so forth then it goes into liquid reaking down to ig layers so like following it

along like as it as it goes here it's just really really cool to see and it's really cool to see this visual ized here so yeah kudos to eway for for putting this out here and thanks to them for sharing it in the de Discord channel so I didn't miss it uh and actually I wanted to give a quick shout out for eth wve here they they asked me if I could do this shout out for them and of course I will oblige here so they're actually looking for a job in crypto right now they're looking for a junior developer role or or you know something in the community but also around data analysis as well so if your team or a team you know is looking for anyone like that please reach out to me or eth wve there Discord Channel um and let them know

about that uh just just a shout out there for them uh you know I'd like to get them working in the ecosystem they obviously do a lot of great work and they know what they're doing when it comes to developing things and and building data visualizations and analyzing data so they definitely be an asset for any team uh to have so yeah just wanted to give a shout out there uh for them all right moving on so you guys know that shared sequencing and pre-confirmation and based rollups and Bas boosted rollups they're all the buzz words that Justin Drake is talking a lot about recently uh but not just him a lot of different people now obviously it can be hard to keep up with where this stuff's going keep up with like the calls and things like that well there's a new resource here that M team put out

on uh faster today where you can check out I'll link it in the YouTube description below but this has resources for everything regarding based rollups shared sequencing uh and and everything that goes into that as well as links to the things like the pre-confirmation calls or the shared sequencing calls that Justin Drake has has been uh spitting up recently and others have been joining recently that you can go uh look at and you can actually go check the notes as well so you don't have to watch the whole video or listen to the whole podcast you can just look at the notes as well uh but yeah I mean there's not much else to say here I just figured I'd put this on your radar if you wanted to learn more about based rollups and base boosted rollups and and Shar sequencing and pre-confirmation those

three things are definitely going to be at the Forefront of this the talk about fragmentation generally within the ethereum ecosystem within the l2s uh so definitely go check this out allink Link in the YouTube description below for you to do so all right EIP 4844 is coming guys like it is less than 10 days away now uh very very close at this point actually I think that it's going live in exactly 10 days in an hour and a half no no actually less than that I think exactly 9 days in an and an hour and a half CU I know that the live stream is at midnight my time uh but regardless of that very very close now now Michael silbering here has put together a really really great resource that shows you uh well not just him I mean a bunch of other

people worked on this as well it's basically a website that will show you how much blobs will save you as a user after they go live on op stack chain so this just applies to op stack chains does not apply to arbitrum 1 or ZK syn or snar Stark net or anything like that just op chains like op main net and bass uh and and a bunch of others out there of course and Zora which you you guys have probably used before if you've used farcaster now there's two ways to interact with this you can go to the website which is we lovethe blobs doxyz and on this website they'll give you sample transaction so if you go you click okay I want to see what a swap on Unis swap is going to cost me pre blobs and post blobs and you can see here that

before blobs it would cost you 58 cents after blobs it's going to cost you basically a cent obviously a substantial saving there now I do want to caveat this by saying that you can click the learn more button on this page and actually kind of learn about how they're calculating this there's a lot of assumptions baked into this a lot honestly of assumptions baked into this because we just don't know what blobs are going to be priced at when they go live we just don't know what's going to happen there so there are there are a lot of assumptions we know that the rollup fees are going to be cheaper but we don't know how much cheaper we're just estimating here and we also don't know what it's going to look like based on which rollup stack it's aart of because op stack is going to be

different to what how arbitrum handles it is going to be different to how uh zik Ayn and stet handle it and so on and so forth right so just just keep that in mind there but what's even cooler about this tool is that on farcaster if you actually go to the to this um cast which I'll link in the usbe description below and you have your uh you're logged into farcaster with your ethereum wallet if you click check savings it will show you one of your transactions that you've done on base and you can actually see what the cost was for you uh when you did it and then what the cost will be post 4844 so you can see here that I recently minted uh an nft on on vasia uh for 0 whatever 007 eth which cost me about a dollar and then the estimat cost

after 4844 is going to be about 1.3 substantial Saving right and then you can keep clicking through this I I can see another obviously all this activity is happening on S.R you can see I claimed my dgen tokens which are uh people tip you D gen on farcast so I claimed that and I claiming cost was over a dollar uh and now post 4844 it's going to be 1.4 and you can keep clicking through this is all on s. e so obviously I don't mind if you guys see what I'm doing here uh you can see like sending eth and I'm just clicking through as as as it goes on here um interacting with uh with arc's that have transferred and and I think that's a swap actually but yeah anyway you can go check this out for yourself and check out your own transactions to see this

but as I said guys like just keep in mind there's a lot of assumptions baked in here we don't know what the cost are going to be until 4844 goes live but this is really the groundwork being laid here for the you know for scaling ethereum for scaling layer 2s and with 4844 we can basically start to do things like uh obviously it's a start of blobs but it's like not the end of blobs it really is the start we can increase the size of them we can increase the count of them and that will make things even better and it will make um make uh make savings even better but the as I've always said about 4844 the coolest thing about it is that it creates a separate fee Market because right now you can see that gay is at like 60 that given that

we're in a bull market I don't expect gas to go back down you know I don't think gas is going to go back down low for a while like it's not going to be sub 10 for a while right like as it was in in the bare market for a bit there so it's going to be high but Post 40 4844 rollups will no longer be using well most of them have said they're not going to be using call data on on the normal layer one they're going to be using blobs instead which means that the fee Market will be completely separate for them to what we have so it's going to start at basically One Way essentially or even cheaper than that and then it will got from there based on usage of blobs and blobs only that fee Market is completely separate from everything else

it is only the usage of blobs that will determine what the gas price is of blobs so yeah anyway moving on from that to something related to that actually Tony put out a great uh little visualization today or pie chart today on Twitter where he said 70% of the total call data comes from rollups publishing data damn ready for blobs you can see the pie chart breakdown of all of the rollups using uh call data and what their share is but yeah I mean this is basically what we're creating blobs for to stop these rollups from using call data because call data was not made for uh rollups right it's not purpose built for rollups it is part of the regular L1 fee market so it it definitely um is is uh you know affected by the swings in gas prices on on layer one and the spikes in

gas prices on layer one because it shares that fee Market it's it can't be modified in an easy way to increase the size of it and the count of it Coe data is actually going to become more expensive uh in a future upgrade probably in Petra because we want to reprice it because now that rollups aren't using it anymore we can just reprice it because it's not it is a resource that should not be heavily used because it adds um you know and and it's mispriced right now I think that's what the C devs believe but yeah I mean the fact that 70% of C data is is coming from rollups and pretty much all of that is going to blobs post 4844 it's going to be interesting to see it's going to be interesting to see what what you know how quickly blobs get saturated how

quickly the gas price of blobs goes up because the gas price of blobs can go up to 60 way as well guys like there's no stopping it from going that high it just depends on the Demand right it just depends on how much demand there is from rups to use it uh it depends on if they want to outb each other but I do think we're going to find a bit of an equilibrium or or a much better equilibrium with blobs than we will with than we did with call data and and the reason is is because with blobs we know the user like besides I mean take away inscriptions like I'm assuming no one's using it to do inscriptions because you know maybe they do it at the start and they won't do it long term but with blobs we know the user the user are the

is the rollups and the rollups it's in their best interest not to try to out bit each other because there's no me to be had from that there's no real advant AG to be had from that I mean maybe you can say that oh look we're posting to the you know to layer one every block uh and you know that makes us more secure but in reality it's that's not how it works so outside of some meme marketing it doesn't really make any sense to do it so really what we're going to see is we're probably going to see like an orderly kind of uh fee Market much more orderly than what we see in the regular fee Market because blobs are their own fee Market they're very specific to one I guess user which which is rollups and and because of that it means and there's

no as far as I know there's no M to extract from this so because of that the fee Market should be a lot more orderly than uh than the regular fee Market The Blob fee Market should be a lot more orderly than the regular fee Market outside of things like inscriptions kind of invading from time to time but I don't expect that to to be anything but a passing fad to be honest so I'm very very excited to see that all go live and see that all play out been a long time coming you guys know that I mean I I think I've said I'm excited about it a million times already but yeah just a great V visualization from Tony to remind us that yeah blobs are going to be a very very big deal all right staying on topic of l2s Tao has announced a $37 million Capital

raise across three different rounds now I participated in one of those rounds as an angel investor just to disclose there uh but I mean there were a lot of kind of people in this round a lot of funds in this round as well uh light speed uh hashed generative Ventures and token Bay Capital were all the leads I believe with a bunch of other VCS joining as well as a bunch of angels here you guys know Tao is uh one of the l2s that is focused uh on based Roll-Ups I think they're the only L2 really that's focused on based rollups right now or at least doing a lot of research into that area they have been around for a while I've talked about them for a while on on the refuel I back them because I love l2s and I just love l2s that do

different things as well like there there are a lot of l2s right now I think that if you're kind of splitting the l2s into different categories I would say that when I think of an L2 I think of them as ecosystems now so you have the optimism ecosystem which is obviously all the op stack chain so I count bass as part of that I count blast as part of that I count op main as part of that and other ones right and then you've got like the polygon ecosystem so they got the polygon zkm the future polygon POS chain all the other chains that are joining uh to be part of the the aggregation layer then you have obviously arbitrum arbitrum 1 arbitrum Nova you have the arbitrum orbit chain so when I talk about them I talk about them as if they're ecosystems cuz they

are right uh but then you have the ones that really are thought focusing on something very specific and something very I I guess you could call it Niche or just like not a CO kind of like ecosystem play where it's like oh we'll let people create change using our own technology so that's the tyos of the world that's the Scrolls of the world um you know I think Stark net as well to an extent they haven't really focused too much on I guess like making people making it so that other people can use their technology to create their own chains it's more about make more about making Stark net the best that can be they did start off like that with a mutable oh and obviously mutable is part of the polygon ecosystem now as well but yeah I mean IM mutable Went to went to

polygon here uh and then I mean I think there's a few others like ZK sync for example I think they do want to do the ecosystem play but definitely they're more on the the too and skull side right now than the ecosystem side of things but regardless of that um you know the reason why I I really like tyo is because they really laser focused on this based rollup uh kind of primitive which if it works like we want it to work it' be very very cool because it means that essentially what a base rollup allows you to do is it allows you to use ethereum's l1's block Builders and validator sets to process your transactions instead of using your own sequencer uh and this has obviously a lot of benefits because you get like a more you I mean you instantly get a very

decentralized and and distributed validator set but the main con at least from my point of view is that you've got that validated set but you're still at the mercy of that validator set you you don't have your own sequencer you know you're giving up the me to the ethereum L1 validators you're giving up the fees to the ethereum L1 validators and the block Builders um instead of uh doing it within your own ecosystem but from a kind of composability perspective it's better as well because you're obviously using the L1 and the L1 transactions can be composable as far as I know and and atomic as far as I know with the with the L2 transactions but yeah I'm just super excited to see people trying different things within the ecosystem so yeah I'm I'm glad to back them but congrats to them for this massive raise

that is a lot of money and it's given them money to build out the based rollup technology all right all right grow the P has a new feature so they've called uh well they've added block space to their single chain view so you can focus on your favorite L2 with dedicated block space analysis and see what activities are hot on your desired L2 in the most active contract section and I think I've shown this before but if you go to the chain overview block space section here you can actually see each of the l2s that grow the p is tracking such as bass op main net so on and so forth and you can see what uh is taking up the block space on those networks so for bass for example the uh most used thing outside of unlabeled would be social and defi so

Defi and social are the two biggest things there obviously social is because of farcaster um and then uh there's uh other networks such as Zora where 42% of their block space is being used for nfts I mean that makes sense cuz they're an nft focused L2 you have arbitrum 1 where 26% is focused on defi uh and very little on nfts actually 1.7% right because arbitrium is very much heavily used for defi but then you can see the the rest of them here you can see the rest of the the chains what they're all focused on but the reason why I really like this overview is because it really kind of proves out the thesis that different l2s are specializing in different things they obviously all have their own defi ecosystem happening on there there's going to be defi on there regardless but then you can see here the

just the Stark difference between Zora Zora has 42% nfts and only 3% defi um whereas oh sorry only um only basically 0% defi actually I mean I think it's probably a little bit more than 0% but yeah you can see here that it's basically 0% uh and then you go to something like uh uh like arbitrum 1 which has 26% D5 but only 1.7% nfts so you can see the differences between the the the kind of different chains here which is what I really like to see but you can go check this out I'll link it in the YouTube description below uh but yeah just wanted to shout out that for you guys so you don't forget that's a feature on grow the pie all right so a pretty major announcement from Queen base over the weekend now I think they've been working

on this for quite a while it's part of their wallet stack so Jesse poac shared this on on Twitter where he said the coinbase smart wallet is the most important new product since base and the most consequential consumer wallet launched in The Last 5 Years it's the last piece to bring billions of people on chain because it just works he is not uh being hyperbolic about this he is not I guess like being too bullish about this I actually think he's 100% right here because if you click on their demo here which is at smartwall doxyz it's on testnet right now and you just click on uh I mean I have to log out cuz I already done it if you click on connect to Mint you can see oh you actually can't see this on my screen but it pops up with something that basically says

hey do you want to create a wallet and then depending on what device you're on whether you're on a desktop PC or in your mobile wallet whatever it's going to use that to generate your wallet and that's it you've got a wallet and that's it you don't have to download a new app or anything like that it's just using what you already have U and it's generated the wallet for you and then you connect Ed to the correct Network and you you you've minted now Jesse does a really great job of explaining exactly what's so special about this more than bit better than I can setup is less than 10 seconds it's very very fast there's no separate app or extension as I said Works across all evm chains and apps out of the box you can use your coinbase balance on chain now this is the most

important thing if you have a existing coinbase account centralized exchange account with a balance you can now use that balance on chain like that is mind-blowing that is actually really really really good it means that the bridging is abstracted away completely didn't I say this was going to happen guys I said this was going to happen I'm giving myself some credit there so that's just abstracted away all of that right and extracted away all the intricacies of creating a wallet because it's just done natively within whatever device you're on here there is TFA there's recovery and and more security uh uh features that keep you safe and day one distribution through the existing uh development kits such as rainbow kit wallet SDK and so on and so forth this is how we bring the masses on chain guys this is it right here you're seeing it happen in real time coinbase

is one of the teams leading this there are other teams working on this as well don't get me wrong it's not just coinbase but coinbase is laser focused on making it as simple as possible and they have the distribution to back it up too because they have the most real human users out of any platform in crypto they have the most customers the most kyc customers so they know they're real people for the most part you know sometimes you can slep through the cracks right but for the most part they know that they're real people they've got money there they've got their balances on exchange they can actually do this analysis and see how many people have never actually withdrawn from The Exchange and say okay well let's just make it so that they can use their coinbase balance on chain and bingo bango they're on chain like that is

mind-blowing that is exactly what we want this should be celebrated more I don't know why people aren't talking about this more this is what we've wanted for years this is what people complain about all the time oh it's too hard to get on chain there's bridging oh no one wants to leave a centralized exchange or creating a World's too hard there's too many different kind of like new terminology for people to use well now there's not you create a wallet under 10 seconds you have security features baked in there's no separate app or anything to download and you can use your coinbase balance on chain immediately that is the Holy Grail guys I mean obviously it's going to get better over time it's not like the end state but this is the Holy Grail stuff that we want that we want to be seeing so just a huge crudos to coinbase for

this a huge crudos for Jesse for leading the base effort and doing a lot of this stuff obviously internally this is great and I can't wait to see more and more people get on chain because of the efforts of coinbase here all right last up before well this is another long refu these refills are getting longer guys it definitely is a bull market but last thing before I get into a bullish rant I'm going to give you guys a very nice bullish rant in a sec but anyway last thing gitcoin has published the gitcoin 2.0 white paper with the main theme being grants equals growth this was this white paper was written by Kevin auki one of the original founders of gitcoin and Meg Lista here who works uh at at gitcoin or works in the labs of gitcoin the white paper illustrates how grants are pivotal

for ecosystem growth and gcoins evolution from 1.0 to 2.0 gitcoin 2. 2.0 introduces diverse Capital allocation mechanisms and Embraces multiple evm based networks the paper also explores gitcoin modular Solutions text stack so you can read the paper at gitcoin doco paper I'll link it in the YouTube description below but great to see them kind of refocusing here because you guys remember that gcoin did a bit of an experiment with launching their own L2 didn't really succeed didn't really go anywhere um and I think one of the main issues was that it was that fragmentation where G coin as a protocol is better suited to exist on multiple evm chains rather than having their own chain and they leared that and they they were able to gracefully shut down the L2 and now they're moving on to gitcoin 2.0 which seems to focus a lot on that and

focus a lot on grants but anyway because I'm overtime here I'm not going to get into too much detail about that you can go read the white paper it's very detailed and there's also a visual Guide to the white paper too if you don't want to do too much reading it shows what their goals are here so definitely go check that out I'll link it in the YouTube description below for you to do so all right so I promised promised a little bit of a bullish rant to end today's episode off as you can see in front of me I put together a little image of the E Supply versus the eth price since the merge so the eth supply has gone down only since the merge guys it is netive 0.22% over the last 534 days which is when the merge was it's about I think

it's like 535 days ago or something now but anyway since the merge here and then below it I've got an image from cocko of the eth price going up only since then since September 15th 2022 here now the reason I put this out there is because people have been saying oh you know the eth supply going down and eth being deflationary hasn't really had too much of an effect on eth as an asset and I would argue it has because e hasn't really gone down at all since the merge went live ether has really been up only yeah okay it's been slow for a little while and now it's accelerating but ether has really been up only here and I've long argued that the merge issue introduction and the burn and the and eth being at deflation area is really good for basically cushioning eth so I

want to revisit this when the bare Market hits and basically see how eth does and what eth Bottom's at because you know not only will eth have like an ETF not only will eth have all of the natural demand drivers that it already has it's also got the net deflationary Supply so it's going to be interesting to see like what eth bottoms at like does eth go to you know this bull market does it go to like 20K let's just say right you guys know my target is 15 to 20K this cycle goes to 20K but does it only go down to like 8K or 10K like that's a 50% drop at 10K right instead of going down 80% or 85% like it has traditionally like if it went from 20K down 85% that would put it at $3,000 right I kind of struggled to see eth

going to $3,000 if it goes to 20K but hey anything can happen in a bare Market just like anything can happen in a bull market but if it doesn't do that even if it only goes down you know 75% instead which is down to 5K that is still a big improvement over previous cycles and you know maybe it goes down even less than that because as I said it still has all those demand drivers as well as a you know a very limited Supply here but we're going to have to see how that shakes out after the bull Market's finished because we don't know I mean things are just getting crazy right now as I said the other day we're in the mid bull market now I mean BTC is about to breach alltime high it's at 65k it's pretty much going to go to all-time high

this week at this rate right maybe it doesn't break it the first time it goes there typically doesn't but still we're well and truly you know into the bull market now in in the kind of like midcycle here uh so it's going to be very interesting to see where eth goes to what the top is and where eth bottoms at and I think that uh also it's it's going to be interesting to see what eth BTC does as well because e BTC even though it hasn't really performed since the merge it's it's a little bit down it's not flat I think it's down like maybe maybe 10% since the merge or something the the point is though is that in the last bare Market e BTC went down 90% in this bare Market ebtc only went down Max 45% I think think or maybe 50% at at its worst yeah okay that's a

still a big drop but that is a substantial improvement over the last be market and I think that is definitely due to the merge and to eth being net deflationary now in the next bare Market what's that going to look like cuz it's not only about eth USD it's also about eth BTC in my eyes so does that mean eth BTC goes down you know maybe 30% only in the next bare Market or maybe eth has permanently flipping Bitcoin and it's Bitcoin that goes down against eth now I don't think that's going to happen this cycle maybe next cycle um but it's going to be very interesting to see and I do think that the merge issu introduction and eth a559 E being at deflationary plays an absolutely massive part in that and that is what's special about eth being deflationary and that's what

people Miss because it plays out over a longer time period it's not like a meme coin that pumps 400% in a week right I mean Ian we all wish e would pump 400% in a week but it doesn't but it does give you slow and steady growth over time like a nice story of value should anyway enough of that bullish Grant that's going to be it for today so thank you everyone for listening and watching be sure to subscribe to the channel if you haven't yet give it a thumbs up subscribe to the newsletter join the Discord Channel and I'll catch you all tomorrow thanks everyone