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Crypto is about to melt faces | Market Monday

What's happening now, next, and soon that'll make crypto melt your face off
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Apr 5, 2021 • 5 min read

Dear Bankless Nation,

The era of digital assets is upon us.

Let’s go through what’s happening now, next, and soon (the ETH effect)…because I have a feeling crypto is about to melt faces.

The Now…

Last week we saw Visa announce it’s using Ethereum to settle USDC transfers on its network. We also saw Goldman Sachs scrambling to enable Bitcoin offerings to its customers in an attempt to match Morgan Stanley's new Bitcoin funds.

Every week there’s more evidence that the institutions are building on crypto.

We also saw a historical quarter in venture funding for the crypto space.

And now some are hailing the awakening of the dragon in the East…

🧠 Kimchi premium: The increased valuation of crypto prices when traded against the South Korean Won. Who’s having flashbacks from 2017?

The Next…

On April 14th, Coinbase is expecting to publicly list $COIN on the NASDAQ. This is the first stock on public markets that represents pure, neutral exposure to ‘crypto’, and the hype will be insane.

Hello WallStreetBets. 👋

While the value of $COIN at launch is unknown, if we are truly in a late-stage credit cycle where there’s ample supply of fiat cash in every corner of the world, I expect COIN to pump basically no matter what.

This will be a good test of the public’s level of broad interest in crypto.

Meanwhile…there’s so much BTC ETF pressure on the SEC right now. We recently had a conversation with SEC Commissioner Hester Peirce who articulated her belief that Bitcoin is ready for an ETF. Watch the clip!

Above: Sneak Peak clip of our Conversation with Commissioner Hester Peirce. Coming out on the podcast next Monday!

A new SEC chairman and legacy institutions now pushing it—we have got to be close to the launch of multiple BTC ETFs…

The Soon (the ETH effect)…

All the while something big is happening in the background. I think ETH is about to flex its muscles and have the bull run it has long deserved. Let’s zoom in on ETH.

EIP 1559 is approved and slated for inclusion. This means that Ethereum fee burning begins in July. The significance of a DeFi enabled deflationary store-of-value asset has even elevated Ethereum to the front-page of Bloomberg.

Not only this but some core Ethereum developers are tossing around the possibility of accelerating the ETH 1 <> Beacon Chain merge to before the end of the year.

Why? Because it’s ready. At least this is what Justin Drake and a number of Ethereum developers seem to be indicating.

The ‘merge’ is where Proof of Work formally dies and Ethereum is 100% secured by Proof of Stake. ETH issuance drops from 4.75M ETH per year to less than 1M ETH per year and ETH as ultra sound money takes full form. 😱

These fundamental economic improvements as well as a building narrative will lead to an institutional bull run for ETH. We’re already seeing early evidence of this too.

DeFi resonates with traditional investors. Matt Hougan from Bitwise recently discussed why this is the case on State of the Nation.

Institutional investors will look beyond Bitcoin and towards DeFi—the fast-growing sector that is generating over $200M in revenue each month.

Watch over the next 6 months as the Ethereum narrative bleeds into mainstream financial media. Here’s Ethereum being discussed on CNBC just this morning.

The now: institutions building, historic funding levels, retail awakening in the east.

The next: Coinbase IPO and Bitcoin ETF.

The soon: ETH’s narrative leaks into the mainstream.

Get ready to have your face melted. 🚀

- David Hoffman

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MARKET MONDAY:

Scan this section and dig into anything interesting

Market numbers 📊

  • ETH moons +16.2% to $2,120 from $1,823 last Monday
  • BTC inches up +2.2% to $58,900 from $57,600 last Monday
  • TVL soars +20.1% to $51.2B from $42.5B last Monday
  • DPI jumps +9.4% to $452 from $413 last Monday
  • DAI stability fee on ETH holds 5.50%

Market opportunities 🤑

Yield Farming 🌾

What’s new 📰

What’s hot 🔥

Money reads 📚

Governance ⚖️

WHAT I’M DOING

Check out a few cool things I’m capturing right now in crypto

  • Ryan: Taking a closer look at DAO tools like Collab Land, Snapshot, SafeSnap, and DAO House. This space is shaping up!
  • David: Farming ALCX in the ALCX/ETH Pool. Here’s a really solid 101 writeup on what Alchemix is and how it works. Farming APYs are pretty high too these days—almost 400% on the ALCX/ETH pair!
  • Lucas: Learning about Fei Protocol. The genesis event was last week and a lot of the Bankless Nation participated. It’s an interesting take on algorithmic stablecoins and garnered over $2.2B in liquidity at genesis. But will it succeed? TBD…

WHAT YOU’RE DOING

What’s the coolest thing you did in crypto last week?

See the rest here!

Extra Credit Learning

Some recent tweets…

SOMEONE on the Bankless team STEALS TWEETS!!

Actions

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

Published in Bankless

There’s a revolution in the world of money. Ethereum, Bitcoin, crypto, open finance, DeFi—a bankless revolution. And you want part of it.

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