Core dev updates, ETH demand and more - The Daily Gwei Refuel #842 - Ethereum Updates

Transcript

Hello everyone. Welcome to another episode of Delray Refuel where we cap the latest news in the ecosystem. I'm your host Dan. This is Sino as the 15th of July 2025. All right everyone, let's get into it. So, it's been about a week since my last refuel episode here and a lot has happened over the last week. It just feels like things are accelerating every day now pretty much. Uh, and as you guys know, I'm just doing refuels when I feel like it at this point, but I do feel like doing one every day. But, uh, you know, you guys know how routines work, right? where if you don't do something for a while after it's been a routine, it like it's not a routine anymore. So, and it's not a habit anymore, right? So, you have to kind of like build back up to that. Um, but just

doing the episodes when I feel like it's actually working really well for me. And it's it gives me kind of time to stew on things a bit longer as well. Like, I've had a lot of thoughts about a lot of things and there's a lot of things to talk about today which I'll get into. Um, but you know, obviously there's two different sets of the Ethereum ecosystem as I've discussed in the past a lot. you know, the Ethereum network as it exists as a technology and then ETH as an asset. And obviously, these things play off of each other. Ying and Yang, one cannot exist without the other, but I think that I've been talking a lot about the asset lately. And I want to start talking more about the tech again. And that's why for today's episode, I'm going to be starting off with the tech.

But I am going to be talking about the asset. Like, it's really hard not to talk about the asset and what's happening there given that there's so much bullish stuff happening there. Like if I was just to talk about Ethereum the tech today, I'd be missing, you know, at least half of what's happened over the last week with regards to the Ethereum ecosystem as a whole, but I will leave that to the end. And I mean, I have a really bullish rant lined up for the end of this episode. Uh it's the it's a tweet that I put out the other day that I shared in the Delhi Discord channel. And I said that, you know, I'm going to do a rant um but it's going to be non- cocaine filled cuz some people made a comment that like I got so bullish last episode that it it was like I was on

cocaine or something. I was like, "No, no, I'm just like obviously filled with bullish energy these days about um Ethereum and ETH." But anyway, asset stuff later, tech stuff now. So, the first stuff to talk about when it comes to the tech is of course the Ethereum core protocol. A lot of stuff happening here right now, guys. Obviously, we have Foraka coming up hopefully before the end of the year. I think it's still slated for like October, November to go live. Obviously with that is uh going live with that is Podas as the headliner and then we have Glamsterdam coming next year. Now, a lot of the conversations have since moved from Fusaka to Glammsterdam because we already kind of know what's going into Fusaka and there are a lot of people discussing about what the headliner is going to be for Glamsterdam. Is it going to be shorter

slot times? Is it going to be Fossil? Is it going to be EPBS? We're going to talk about that in a sec because Nixo has a has a tweet related to that that I'm going to cover. But in terms of general updates, you've got a tweet here that Lattis Slaw does uh each week basically all about the protocol research side of things. So the research obviously in Ethereum is you know way ahead of where the development is. It's usually a few years up to 10 years out in terms of kind of looking at what the future of Ethereum looks like doing research there looking at what may work and what doesn't. Um and there is a lot going on in that arena as there always is. So the highlights from the last week included uh all about uh shipping an L1 ZKVM.

That's obviously been a huge discussion over the past I guess like 6 months has really ramped up but you know this has been on the kind of road map for a while now but things are really picking up there. You know there are there are really people who believe that we could ship an L1 ZK EVM uh as early as 2027. And I think I mentioned this on one of the previous episodes where I said that 2026 probably not going to happen given that it's not even kind of part of Glamsterdam and Glamsterdam seems like it will be the only fork that happens in 2026. Um I don't know may maybe maybe we'll have two forks in 2026 but Amsterdam is is shaping up to be a pretty big one. So if we were to see it would be 2027 but that is a much faster

timeline than was given previously. I think previously it was expected maybe 2029 2030 sort of thing. So 2027 seems to be the kind of uh the kind of I guess consensus right now but at the same time it's also a rough timeline. So we'll have to see um what happens there. There is also uh uh updates on EIP7983 which has got to do with the transaction gas limit cap. You can read more about that. I'll link in the YouTube description below. Uh the compatibility of EPBS and Fossil which I'll talk about in a sec. Road to statelessness. So there's a I don't know if this is a new website but it's one that I haven't covered before uh called bloatet.info which basically uh is a is a initiative around scaling uh Ethereum through statelessness. And statelessness has been on the road map

for a while now. and we kind of are looking at ways to basically get this live on mainet in order to uh reduce the kind of overall network bloat in order to scale the network like everything is in the service of scaling the L1 and scaling the L2s here guys like that's why we do these things um you know there are obviously other L1 upgrades with related to security related to censorship resistance and increasing the decentralization of the network but of course you know I mean most of the the kind of like core things that are being worked on the big headliner things definitely have a lot to do with overall kind of network performance, scalability, um, and you know, obviously, uh, lowering fees as well for the end users here. So, this is a website you can go check out. It's got a bunch of different things on here such

as like metrics that that are being looked at, uh, attack vectors, bloating. I mean, this is really something quite technical as well. Like, don't expect to go here as a casual user and know what's going on, but hey, that's a resource that's there for you guys as well. Um and then also lattis law here provided a summary of the beam day in cans uh EVM resource pricing and L2 interrop uh breakdouts uh breakouts sorry uh which all happened at I believe HCC in cans here. So you can go give this a read for yourself. I'll link it in the YouTube description below for you to do so. Now moving on to what I was talking about with regards to NIXO's tweet about um Glamsterdam and about EPBS Fossil and all those other upgrades there. So, as I

said, Glamsterdam still doesn't have a headliner. And what a headliner is for each network upgrade, uh, in case you forgot, is basically the kind of EIP that is considered the one that is kind of like on top of all the others. So, it's the most important EIP or it's the thing that the upgrade will be known for, uh, so to speak, right now. There was a lot of discussion about what this should be. And because of that, the um forecast website now has a really cool little I guess like uh tier, you know, meme meme tier ranking kind of image generator that you can use here where essentially you can drag the various EIPs into into these ranking sections and rank them where you see fit. So let's just say you think that EPBS is really important and you think it should

be a headliner for Amsterdam. Well, you would put it into the S tier here. S is number one. Um, and and then there's A, B, C, and D here. So, essentially, a lot of people have been tweeting these images out, and it's a really good way to, I guess, like gauge kind of rough consensus around what people want. From what I've seen so far, most people put reduced block latency into STR. So, reduce block latency is obviously reducing the slot time. So, essentially getting us down to 6second slots from 12 seconds right now. That is is pretty much in everyone's number one, I think.

Um and then uh some people are putting Fossil in there as well. Uh and then you have EPBS as well. But the problem is is that EPBS and reducing slot times are in contention with each other right now with regards to the way the core dev the the core devs are looking at them. I think there is a general consensus and someone can correct me if I'm wrong here, but from what I've seen, there seems to be a general consensus among core developers that they don't want to do EPBS and reducing block latency at the same time. And I think that's one of the conversations that has spurred on this tool because essentially if we can only do one then we need to gauge what people consider to be more important. Is it reducing the slot times or is it EPBS? Now so spoke here has a really

good tweet thread all about EPBS and why uh it really it goes really nicely with Fossil, what you get from it, what the um you know the the I guess like the end user benefits are so on and so forth. But you can also go to forecast uh forecast website as well. So if I go to uh Amsterdam upgrades here and I click on uh let me click on uh 7782 which is reducing block latency. It will give you the benefits the stakeholder impacts uh and everything here as well. So you can go give that a read. I'll link it in the YouTube description below. Uh and this exists for every IP as well as um enshrined proposal builder separation uh or EPBS here. So go check those out if you haven't yet. But what I'm going to do now is I'm going to put my live

rankings on here. I actually created one of these images before and tweeted it out. It was a meme image where I put like um everything into the Sranking just as a joke, but I'm actually going to do this live on the refuel now. And this, as you guys know, the refuel is not obviously live stream, but it's pre-recorded, but I don't edit it normally unless I cough or something and and need to edit that out. Uh but so you you'll see my kind of um uh my kind of uh STR, AR, BTS, CDR, CT, and DTR picks here. So, without further ado, let's go. This is probably not going to come as as a surprise to you guys at all, but I'm putting Fossil in STR. Now, as I said, like EPBS and and and reducing uh block times are in contention with each other,

but I don't believe Fossil is. So, I believe that Fossil could be shipped alongside either of those, but Fossil has been in the works for a very long time now. Uh it is really good for censorship resistance. Like, it's definitely needed. I I I mean, I don't I wouldn't say it's critical. Like, it's not something that we need like now, but it is something that we need in the network. It's just simple as that. That's my my view on it. So, I put that in STR for sure. Now, here's where it gets a little bit trickier for me and I guess like for for a lot of people is where to put EPBS and reducing block latency. So, if they're in contention with each other, if only one of them can go in, then I can only put one in STR, right? I can't put both of them in STR

because we can't have both. Can't eat our cake and eat it too right now. At least that's my understanding. So, like I have to put one in. So, I'm going to put one in. I do have my my pick here and that's EPBS. I think that EPBS is more important than reducing the slot times. And I'll give my my reasoning here. Main reasoning I guess is that the reduction in slot times is great and is needed. But the problem is is that if we want to work towards a ZKVM or L1 kind of like ZKVM and if it takes 10 seconds to prove 99% of blocks and if that's like at least for the foreseeable future the the the the fastest we can do it then by reducing

slot times to 6 seconds we would push back the L1 ZKVM because you can't have that in uh you can't you kind of like um do an L1 ZKVM if you can't prove the clocks in the slot time. Like it's just it it doesn't work, right? So, there's a massive trade-off there between between that. At least from my understanding. Again, someone correct me if I'm wrong here. I'm not as plugged into core dev stuff as I used to be because I obviously I'm not doing a refill every day, but this is like from from what I can gather here. And kudos to and shout out to Greystroke and the Dead Discord channel. He's been keeping up with this stuff and posting it there. But yeah, so that that's a kind of trade-off there.

Also, it's more complex, I believe, than EPBS. And at the same time, there are good arguments being made that EPBS is actually better to go first as a prerequisite to um you know two sixsecond slot times. Uh and and you know we can maybe do the reducing block latency, the 6second slot times in the upgrade after Glamsterdam if we do EPBS and Fossil in Glamsterdam. And as I mentioned before, there's a really great argument here in this thread from Soy spoke saying that EPBS and uh sorry, it's not a thread. It's basically a link to an Ethereum magician's post here of essentially saying that EPBS and Fossil work really nicely together uh and should go in the same upgrade together.

So if we take that as fact and we want to do reducing block latency instead of EPBS, well that means we would probably not do Fossil, right? like if you if you if to get the like the the main benefits of fossil if if that requires EPBS or if EPBS is like a huge kind of upgrade there then you would want to ship these things together. So if you can't do so because we're in a bind here because we can only do one or the other from from my understanding uh I would rather go with this. This is my choice here. I would rather have EPBS and Fossil together in Glamsterdam and then reduce the block latency later. Another reason why I think that the reducing the block latency isn't that urgent as well is because in terms of like doing uh like

in terms of the upgrades and and the benefits that that reducing slot times gives you. It it does give you big benefits, right? It makes the network more efficient. Obviously, faster transaction confirmations, faster um uh uh uh confirmations for for L2s, faster finality for L2s. I'm not talking about like the economic finality of the network, but in terms of them posting their stuff down to L1 and and also all else being equal, you get more um you get more scale here too. Uh like it's good. Like there's plenty of good things about it. But again, the problem is is what what I just outlined with the ZKVM stuff. The fact that you would like to ship EPBS and Fossil together. So that's why I have um EPBS and Fossil as the things that I would like to be shipped in as my headliners. In saying all of

that, where does reducing block latency go then? Well, it goes into A tier, of course. Like, I think it's really important. Like, there's nothing like I don't actually think it's not important. I think it's really important. So, it belongs in in a tier as well. And the other ones that I would put here would be delayed execution and block uh level access list. I think they're both great. The rest of these things, I don't actually know what they are off the top of my head. I mean, as I said, you can always go to the forecast website here and check. Actually, I should duplicate this tab so I don't have to keep going back and forth uh between them. Uh and then yeah, this has kind of canceled out my little thing here uh of what I did.

Uh let me just put this back. Uh and Fossil and EPBS. Oh, sorry. I'm I'm doing it wrong here. EPBS goes into STR. Um yeah, so if you go here and you actually look at what these are, I think the this is very technical. All of these um available at test station. I don't know what 7942 is actually. I'm going to look at that here. Uh, it eliminates all known reorganization attacks permanently. Provides formal security guarantees with mathematical proof. Strengthens transaction inclusion and finality properties. Enables more aggressive scaling without security trade-offs. That sounds pretty good to me. I mean, but like at, as I said, I don't know too much about these upgrades yet. So, these four I I'm not going to put in any of the tiers here because I don't actually know what them well enough. Maybe I'll put EOF in Dtier just

to annoy people. No, I'm joking. This is not I don't think this is the eof that the same one that was kind of punted from PCR. I think it's a different one. Um but I have to look into that more. But yeah, that that's currently my standings. I'm going to finish this image and tweet it out eventually. Um but that that's currently where I sit there. Maybe you guys resonate with what I was talking about with regards to EPBS Fossil and reducing the slot times here. Maybe you have a different view on that. You should definitely let me know if you do, but you can go create your own image. I'll link this in the YouTube description below for you to do so. And again, a reminder that you can learn all about these EIPs on the forecast website.

All right, so there's a new really cool dashboard from the Grow the Pie team that came out the other day. Now, this dashboard is probably my favorite one that they've actually ever made because it has a really nice at a glance view of a bunch of different things here. So, first off, you have Ethereum's uptime. Now, as you guys know, Ethereum has 100% uptime. It's almost 10 years. The 10 year anniversary or the 10th birthday is on July 30th. Uh, so that's coming up within 2 weeks. Uh, so that's there. You can see here Ethereum uptime 9 years, 11 months, 14 days, 13 hours, 17 minutes, and 57 seconds at time of recording.

That's all well and good. We we we we know Ethereum has 100% uptime. Uh, and it's great that it's just there as a live ticker. Next up, and probably my favorite part of this dashboard, is this little section here called Ethereum ecosystem TPS, which aggregates together all of the different um L2s as well as Ethereum L1 and shows you what the aggregate TPS is across them. And this updates in real time as well, pretty much like every second, I believe. And you can see here also the 24-hour peak TPS, the all-time high TPS, and then the live TPS. So, as I'm talking right now, the live TPS obviously is fluctuating between, you know, 350 to over 500. Uh, and then you have the peak TPS of the last 24 hours was 2,700. Alltime high is 3600 here, which is really awesome to

see. So, it's just an at a glance view of what the current landscape looks like in terms of TPS. And then similarly, you have a another section here which tracks all of the different uh token transfer fees across all of the L2s. pretty much like all the L2s from what I can see just eyeing it off under 1 cent right now um or at 1 cent and then you also have Ethereum mainet being tracked. So to transfer a token on Ethereum mainet, I think this is ETH. Like I I actually don't know for sure what this is, whether this is ETH transfers or ARC20 token transfers. There's different costs for them. But like if we just assume this is ETH right now, the ETH transfer cost on L1 is around 17. On an L2, it's like on average is 0.001.

So obviously very very cheap, almost free there. But that's a great little uh uh section there. And then scrolling down, they have a bunch of other sections such as the total application revenue of everything in the Ethereum ecosystem, stable coin supply, how many layer 2s are alive right now. We apparently have over 100 layer 2s, um the daily TPS of L2s, and this is all tracked over time on nice little charts here. And then you can click into each of the individual L2s to view their own metrics there. Now, on top of this, uh they're going to uh they're teasing that they have other things coming, other kind of metrics coming here which haven't been enabled yet, but I'm sure is going to be coming uh sooner rather than later. So, as I said, one of my favorite new dashboards of uh covering the Ethereum ecosystem here. You can go

check that out. I'll link it in the YouTube description below for you to do so. All right. So uh something that caught my eye uh yeah today actually it was announced today was this new based rollup or based L2 that is being developed by the Rya team here. So they're calling it Rya chain um and they're saying that it's enabling internet capital markets as a based rollup on Ethereum and you can go give this a read for yourself. I'll link in the YouTube description below. Obviously everyone's really excited about based rollups. They've got a really unique architecture I thought from reading through this and having talked to the team as well. I should disclose I'm I'm an angel investor in this team. They were known as as something else a while ago. Um but I've been invested in them for for quite a while now. But

essentially what they're trying to do is bring the Hyperlquid trading experience to Ethereum as a based rollup. So as you guys know, Hyperlid is an L1 that has gotten a lot of fanfare over the last few months. It's been growing quite rapidly. But I mean I think it's fair to say that it's very very centralized, right? It's a it's an L1, but like um it it doesn't have a huge validator set. It's very very centralized, but that trade-off means they get performance. And you know, kudos to them for taking that trade-off to its logical conclusion because as I've discussed before, you're either centralized or decentralized. I actually don't think there's really a middle ground on a long enough time frame. I don't really buy into the decentralization is a spectrum thing.

Um, from a performance point of view, maybe u mostly uh I do think that like you're either as an L1. I think I should clarify as an L1. I think like you're either a decentralized global credibly neutral settlement layer like Ethereum or you're very very centralized like Hyperlquid but for that centralization you get a performance uh boost there sitting in the middle I don't think that works um and I think over the next few years that's going to be proven out even further than that but that's a bit of a tangent to to this as I said you can go give this a read I'll link it in the YouTube description below but what I really wanted to highlight was a comment that Simon made here so Simon um is is obviously working on this and he's one of the uh the architects behind it. But

essentially, a little while ago, Rya had actually flirted with transitioning to an L1, right? And this is interesting because they were going to transition to an L1, but actually decided against that obviously and want to be an L2 on Ethereum now and specifically be a based rollup on Ethereum. And Simon responded to this this question saying they thought about it and it would have been a similar design where execution and cons and consensus were decoupled into different node types to be super fast but uh decentralized. Uh but then the more you think about uh think about that and think about that design uh choice there, the more you realize you should just build on Ethereum. And I mean I think that's a pretty good way of putting it. You should just build on Ethereum. Like that that's the beauty of the L2 road map. It's the beauty of the

rollup ccentric road map is that you can just build on Ethereum. Like you can do all of this stuff. You can make all these trade-offs. You can design all these different things and you can just do it as Ethereum. Because if you're you're separating out consensus and execution um to begin with, then like you already get that out of the box by being an Ethereum L2. You're just pushing the consensus to Ethereum L1 and you're worrying about the execution performance of your L2 and and and that's about it. So that's the better design. And I've I've been talking about this for years now, but like it's good to see that people actually in the weeds saying this because it means that it may convince other people to also say this and other people to also kind of get on this train here. So you can go give this

a read. I'll link it in the YouTube description below uh for you to do so. All right. So, now we're moving on to the bullish kind of part of the the kind of podcast, bullish ETH part, I should say. So, there's a couple of new reports that came out over the last week. One of them came from Fidelity. So, for those of you who don't know, Fidelity is the third largest asset manager in the world. This is not small potatoes here, guys. This is big potatoes. Now, they put out a report covering the Ethereum network, and you can go give the report a read for yourself. fallen kid in the YouTube description below. But they posted that they believe if ETH is a store of value. And I think this is like probably the most bullish thing that I've seen happen in a long time. And

honestly, like this gets me super excited because of the fact that we have as an ecosystem um and myself since at least 2019 been pushing ETH to be a store of value to be pushing ETH to be valued as a store of value instead of some kind of tech stock or instead of valuing it based on how much revenues the Ethereum network does, so on and so forth. To see the third largest asset manager in the world say this themselves and reinforce this themselves through official channels means that the overton window has now shifted. That barbell that I was talking about where I said that essentially there is a a barbell there's three points on it. There's the left hand side which is like the tech point of it, the DCF, the revenues point

of it and that's where assets that get rated on that stuff sit. Then there's the middle which is like emerging and then there's the end which is store of value and that's where BTC is right now. And I did say that ETH was in the middle maybe you know end of last year earlier this year it got pulled towards the the tech side of things. Um I'm talking about ETH the asset not notthe here. Um and then now the last couple of months has been being pulled towards the the store of value side of things. I would say that we're pretty much like 90% of the way to the store value side of things guys. Like I really do believe that when you have huge kind of entities like Fidelity saying this that really does shift over to window and that shifts us closer to the store value

side. And the reason why I say 90% is cuz we're not there yet. The you know the job's not done guys. Like it really isn't done. We may not get there. That last 10% may take a while to get there. But I do think that once ETH starts cracking its old all-time high, starts going into trillion dollar kind of territory in terms of in terms of um a valuation of ETH as an asset and then also ETH performing well against other assets, specifically BTC, then I do think that we get that last 10%. And I do think that ETH firmly cementss itself into the store of value kind of category there. And that's where we want to be.

We don't want to be on the left hand side of the barbell. want to be on the store of value right hand side and we want to stay there. No more screwing around with like playing around with that. No more going back to rating ETH based on revenues and whatever. Like let's not do that anymore. Let's talk about ETH as a pristine programmable store of value because that's what it is and that's what it's going to be valued on. And that my friends is worth much more than you can even imagine. That is worth tens of trillions if not hundreds of trillions of dollars. It is not worth tens of billions or hundreds of billions. It is a magnitude step up from there or multiple magnitude order of magnitudes step up from there and that's what we're going to focus on going forward. That's what I'm going to focus

on going forward. Of course, I mean I've been focusing on it for so long now, but I'm glad to see more people wake up to this. So, that's the Fidelity report. You can go give that a read uh for yourself. I'll link it uh in in the in the YouTube description below for you to do so. Now, another report that came out was from Electric Capital again about ETH the asset but more of a focus on how the Ethereum network is going to kind of like feed into ETH the asset and make it bullish. So, essentially this puts a heavy emphasis on stable coins because stable coins is um is the one thing uh that I guess like really resonates with Tradfire right now, but it also uses that as a jumping off point to talk more about what's beyond stable coins. So, this report I'll link in the YouTube

description uh below for you to check out. But essentially, it's broken down into a bunch of different sections. Um the sections here include uh the stable coin section. As I mentioned, there are uh the the yield section. So, not just e staking yield, but yield for for dollars on chain as well. Why Ethereum as a network is the only network that serves the global requirement for all of these all for stable coins generally. How it stacks up. Nice little kind of graphics here to show that. uh and why this all results in more demand for ETH as it becomes a reserve asset of the digital dollar economy. Uh and then going down here, you can also see um you know why holding ETH is the best way to get exposure to the stable coin economy uh and beyond that there. So you can go

give this a read for yourself. I'll link in the YouTube description below. But just another really great report from another entity. Electric Capital is not um you know is not Fidelity obviously uh but they are a big kind of VC in the crypto ecosystem. been around for a very long time. Um, been doing a lot of really great stuff around devel developer reports that I've covered before, tracking developers. Uh, so when they, you know, say something when they put something together, I tend to read and I tend to listen. And this was a really great report. So, you can go give that a read for yourself. I'll link it in the YouTube description below for you to do so there. All right. So, a tweet thread here from Kate, who also works at Electric Capital, uh, talking about how L2s are scaling demand for ETH. This is another

thing that I've talked about for a long time now where I said that L2s are a really nice way for us to basically export ETH as a money and as a store of value. You guys have heard me say this a million times before, but again why I'm bullish and why I'm excited is that someone else who doesn't even follow me on Twitter, right, who isn't someone who I I don't even know who this person is, but I doubt they're an ETH maxi, right? But they're also saying this. So when you start seeing people that aren't ETH maxis, aren't in the Ethereum ecosystem, and are I guess like maybe relatively neutral in terms of what their kind of um stance within the ecosystem saying stuff like this, then it it generally hits harder for the average person than like an ETH Maxi saying. And I

understand that. It's like that meme that I posted the other day where Tom Lee, you know, that HR meme where Tom Lee says ETH is going to $100,000. And the lady's like, "Oh, you're cute." And then I come in and say, "Eat's going to $100,000." And the lady's like, "Hello, human resources." Right? Like I get it, guys. Like it's it means much more and it's much more impactful when it comes from someone who is viewed as relatively impartial versus an ETH Maxi. And that's fine. I'm happy with my position in the ecosystem. I'm happy being the ETH Maxi face. But I think the reason these people are saying this is because of the narratives that are set by people like myself, not to toot my own horn, but I recently saw um someone who works at Arc Invest, that's Kathy Wood's firm, literally copy my tweet, my tweet word

for word and just tweet it out themselves. And I don't care that they're copying my tweet, but when I saw that, I was like, "Okay, well, my tweets are having an impact here and they are actually feeding into the wider narratives that get dispersed outside of the Ethereum bubble in the Ethereum ecosystem." So, I I was really liked seeing that because it reinforced kind of my view that I should just keep being an ETH Maxi and keep bull posting um like that because then other people catch it and the other people who aren't Ethaxis will keep perpetuating out that narrative and that meme and then my work is done and I can kind of rest easy. No, I'm not going to rest easy. Job's not done. And as I said, but um this thread you should go check out. I'll link it in the YouTube description below. But

essentially, it just talks about how ETH is bridging into these different L2s that scales ETH as an asset because now more people have access to it because L2s are cheaper to transact on. L2s have a lot of the new users that are being captured and then they're using and being exposed to ETH as an asset. So yeah, you can go check out that thread uh for yourself there. All right, so this is that tweet that I was talking about just then about the um the guy from Arc Invest that that copied me here. So, I've been tweeting this out pretty much like every day um for the last maybe week where I compare the net new ETH issuance uh that's issued by the Ethereum network to the total flows into the ETH ETFs. So, this is today. Last week, there was a bigger flow, but just

just for the sake of kind of um simplicity here, I'm just going to cover today's tweet. So, the Ethereum network currently net issues, and this is including the burn, around 2,200 ETH per day, which at current prices is about $6.5 million worth of ETH per day. That's not very much, guys. Like, it may seem like a lot to us because we're individuals, but on the grand scheme of things, and in the grand scheme of like how much money is out there, in the grand scheme of ETH's market cap, that's not very much. So, we're getting a net issuance of $6.5 million uh per day here, right? Okay. Well, then what what about the ETH ETS? So, what did they bring in today? Well, they brought in $260 million today. Okay. Well, how much ETH did they buy? Well, they bought about $86,758 ETH. Cool. So, let's divide that by the

the total net new ETH issued today. What multiple do we get? Well, we get 40x. So the ETH ETFs alone, just the ETH ETFs, not including the ETH treasury companies, not including natural ETH demand from retail investors or broader macro demand for ETH that that comes outside of the ETH ETFs, just the ETH ETFs bought 40 times more ETH than was net issued by the network today. And you guys know that I've been banging on for many years now that demand is all that matters. It doesn't matter about supply. Supply only matters if there's demand to match it. This is why over the last two three years as we had EIP1559 go live as we had the merge go live with a 90% issuance reduction the ETH price has not done you know as well as we would like

it's because the demand kind of portion wasn't there and I'm going to talk about this at the end just to illustrate my point here the demand part wasn't there yet Ethereum didn't capture memecoins so ETH wasn't getting a bid because of memecoins right we we failed on that meta let's own that move past that right and then ETH didn't capture the macro bid. It went to BTC obviously, but now we do have that stuff. And again, I'm going to talk about that a bit later. But in terms of demand, supply, ETH has incredible amount of demand right now and not much supply. So, what do you think is going to happen? Well, I'll leave that to you guys for now to to work out until I get to my bullish round at the end of the episode, which is going to take this to a whole another

level. I'm getting ready for that. I'm already like 30 minutes into this episode. But anyway, I want to talk about the ETH treasuries a little bit as well because they go hand inhand with this. So, E strategy, which I've talked about before. I think I talked about this a few months ago, and I um uh I said that I was uh not directly a part of this, but kind of like helping these guys with this or at least being a supporter here. They announced their kind of pre-sale acquisition of 6,900 ETH. So, they have 6,900 ETH in their treasury right now. Uh they're the first and I believe like only fully onchain ETH strategy uh uh or ETH kind of treasury strategy out there right now.

Um, so it's great to see this finally live here. It's great to see them uh be able to acquire a bunch of ETH and I'm really quite bullish on what these guys are trying to do because as I said, it's onchain native. So they're going to be able to integrate with like everything on chain natively. There's no need to go through any third parties. There's no need to go through like Tradfi. They can just do it natively on chain. And it's a very similar strategy to what these other ETH treasuries are using. I should disclose actually before I forget that I participated in this um in this acquisition here. I put a bunch of ETH into this uh because I'm obviously bullish on it and I want to see it do well. But you can read more details about this. I'll link it in the YouTube

description below. But yeah, as I said, this is distinctly different to the other ETH Treasury uh strategies because they're all offchain, obviously part of Tradfi, but this is fully onchain um with no off-chain portion of it, at least at this stage uh here. All right, keeping on the topic of ETH uh treasuries. So, there's been a lot of ETH bought by these treasuries over the last even just week, right? Since I last talked about this, I believe Sharp Link Gaming alone has bought like hundred millions, hundreds of millions of ETH. I think today they bought like $70 million, $75 million of ETH just today, right? It's crazy crazy numbers here, guys. Um, but what's really interesting is that Sharp Link also bought a bunch of ETH off the Ethereum Foundation. So, they bought 10,000 ETH or $25 million

worth of ETH directly from the Ethereum Foundation. And I quote tweeted this and I said, you know, instead of the EF selling ETH on the open market like they normally do, they are selling it to an ETH treasury company who will diamond hand it. So, not only is the EF, you know, they have to sell their ETH to fund operations, we all know this, but not only is the is the EF able to continue selling ETH as they they need to to fund operations, they're able to do it in a much more kind of like I guess you could say values way for ETH as an asset because Sharp Link is not going to sell this ETH anytime soon. I don't know if ever like obviously Sailor says he's never going to sell his BTC but like you have to trust him on that.

Same way you would have to trust Joe Luben if you said he's never going to sell the ETH in sharp link. Uh but like I don't expect Sharp link at least I don't know about the other treasury companies but I don't expect sharp link to sell their ETH anytime soon. So essentially they've just you know bought this ETH from the EF and conserved the value of ETH here. The EF isn't selling it on the open market. They're not even they're not selling at OTC to some other OTC broker who will then onsell it and that eventually will um will hit the market. Uh and and then the optics are a lot better as well because you have Sharp Link who is is going to diamond hand this rather and the EF basically being able to still sell like people who expect the EF not to sell any ETH are

delusional. They have to guys like that's their only way of funding themselves. Yes, they can obviously put ETH into DeFi and borrow against it, but there's risks with that. And yes, they can stake their ETH and earn rewards there, but like there I mean there are risks with that too, but not really. But also um it's not enough. Like they have pretty huge costs here, guys. So I'm happy with them continuing to sell their ETH. Um and and I'm happy for Sharp Link to keep buying it. Like imagine all of their ETH just gets bought up by I mean maybe not on maybe not just Sharp link but like all the other ETH treasury companies instead of going directly uh to Kraken for example cuz that's where they usually sell it to but they probably sell it via Kraken's OTC desk not you know market sell it on on the

order books yet but it does eventually hit there. So that was really interesting to see. Really liking that there. And then last up on the topic of um these ETH strategic reserves. Uh as I said like Sharpink's been buying a lot of uh of ETH recently. Um they're now up at almost 300,000 ETH. This uh the um website here, strategic eathreserve.xyz, hasn't been updated yet, but yeah, I believe Sharp Link is almost at 300,000 ETH. U maybe if I refresh it, it'll be updated. Um no, not yet. Uh uh Bitmine Immersion Tech, which is Tom Lee's thing, announced they bought about $500 million worth of ETH. Uh you had Bit Digital the other week, announced $100,000 purchase of ETH. BTCS, BTCS is continuing to to purchase more ETH. Um and then E strategy obviously is here

now. There are a few uh there is a few new ones. Gamesquare holdings in chains group. Moss Ethereum actually announced a partnership with ETH strategy where they've um kind of put 100 ETH into ETH strate sorry,000 ETH into ETH strategy. So like bridging the um the offchain and online onchain worlds here. But yeah, these uh treasury companies guys like they're buying up a crap ton of ETH. And as I was talking about before, the ETFs alone are buying up, you know, 40x the new uh 40x the amount of new ETH issued each day. Uh but then the treasury companies throw them in and we're at maybe what 100x the daily issuance being bought up by these things. And you're seeing it play out on the price action right now. I mean, he's at pretty much 3K at time of recording, right? Um and and yeah, obviously like that's still

not, you know, at alltime high or that's still only back to what prices were in like January, but it's the trend. The trend is what we care about. The trend is up so far. And now on that note, it brings me to my last thing that I wanted to talk about, which is an extremely bullish tweet. I think um probably one of the most bullish tweets that I've ever put out. And I'm going to go through it because I think this is really important people to to realize. And this is something that I was talking about just before about supply and demand. But I said here and and I started this tweet off by saying, "I think we're finally going to see the effects of the merge plus the EIP1559/burn overall issuance reduction going forward." And this was at the time a 90% plus issuance reduction in newly issued

ETH because we swapped from issuing ETH via both the proof of work chain and the proof ofstake chain to only issuing it via the uh proof ofstake chain which is now just Ethereum, right? Via the beacon chain there. Um, and then obviously we had the burn, which was good for a while, sent us to deflationary, but then obviously since we offloaded a bunch of activity to L2s, um, the L1 burn has come down, but I actually do think we're going to go ultrasound again one day, guys. As we keep scaling up things, as we keep increasing economic activity, I do think we can get there, but that's irrelevant to to what I'm talking about here. So, take out even the burn, we still had a 90% reduction in issuance thanks to the merge, right? So what was missing from this piece wasn't the fact that we needed to lower supply more. No,

we we we had basically no supply coming to market in terms of the the amount um in dollar terms and the ETH terms, but what was missing was the demand piece. And I said this before when uh uh well sorry I alluded to this before but essentially after 1559 went live like a few months after the bare market hit and then the merge was done in the heart of the bare market in September 2022 and then ETH didn't capture the meta after that in 2023 2024 with memecoins and then it didn't capture the macro buyers because they went to BTC. So that's the main reason in my opinion why ETH had such a rough go of it because the demand piece wasn't there had nothing to do with the supply. supply was fine was the demand piece, but now ETH is capturing the macro buys, right? They're capturing

it in a really big way, obviously via the ETFs and the treasury companies. And we've only just begun. This is only the last few weeks. This is not new. I mean, at most, it's probably two months over the last two months. ETFs obviously aren't new, but those are ramping up a lot as well. And I mean, if I go to the the Far Side website here, you can actually see what these look like in dollar terms for the ETH ETFs. Like guys, the last four days we've had hundreds of millions of dollars of of inflows. You you zoom out a bit further than that and you can actually see over the last two months it's just been a massive amount of uh of inflows basically like huge amount for the ETH ETFs. Historically, I think the last week has been the best week since the

ETH ETFs launched. And also I tweeted out the other day um that the previous nine days and I think I was talking about the previous nine trading days from like the 9th of July up had bought more ETH or I think it was from the 10th of July had or no no it was from the 11th of July sorry I should say 11th of July and previous nine trading days had bought more ETH than was net issued since the merge. So, the ETH ETFs over the last over the nine trading days from the 11th of July back had bought more ETH than was net issued. There was about 370,000 ETH um since the merge, which is almost 3 years ago now, guys, because obviously like we've been tracking it since the merge and we've been tracking

the net issuance since then and seeing how it was it was net deflationary for a while and then went inflationary again. But if you account for the fact that like the buy pressure is there right now, who gives a about the burn? like the pressure is here, the demand is here. This is new ETH being bought from the o open market. Doesn't matter if it's OTC eventually like this gets bought from the open market, right? This is new ETH being purchased here. So, that obviously is incredibly bullish. So, yeah, we're capturing the macro buyers that meta that that that um that big new kind of like demand from the ETFs, from the treasury companies, and this is all very reflexive. And then also, Ethereum has firmly captured the meta of stable coins and tokenization.

Whenever someone talks about stable coins now, they're talking about Ethereum. Obviously, in large part thanks to Tom Lee because he's pushing this out to the Trafy crowd, but just generally like there's nowhere else. I mean, Ethereum leads in stable coins. And second place is Tron. And then from there, all the other ones are very very small. The Ethereum ecosystem is is huge when it comes to stable coins, right? Tokenization, same thing. And then also, we're capturing the meta of companies building their own chains as L2s. Robin Hood, uh you know, the the um these other kind of like uh uh the these other um companies like like Sony, um I think HSBC was experimenting with it recently.

There's a bunch of others. I'm not going to remember all of them off the top of my head, right? But but they're doing this. They're building their own chains as L2s. And then I said, all this puts a massive bid on ETH that we haven't seen under a paradigm where ETH has an extremely limited supply. Um, and as I just said, the ETH ETFs over the the 9 days from July 11th had have eaten all of the net issued ETH since the merge. That's just the ETFs. That's not including the treasuries, guys. Uh, and now on top of all this net new demand, you throw in an increasing ETH burn as we scale the L1's and L2s and onchain activity goes up, which will further just reduce the available ETH for all these entities to buy. Imagine if we go ultrasound again, guys. Imagine if we go

deflationary again. I mean, that means there's literally no new ETH net new issuance each day on top of all the net buying pressure. Like, it's just it goes negative. Like, it's just ridiculous, right? It's just very, very bullish. Um, and then I finished off the tweet by saying, "I don't think I've ever been this bullish on ETH. The stars have never been this aligned and all of this is extremely reflexive to the upside." And I I truly do do believe that. I know I've been really bullish in the past about this, but I have noted my bullishness by saying that demand trumps everything else. And now we have that demand in a really real way. And the last thing I'll say on this, and I forgot to mention this before, is that that net new issuance that comes to market, guys, that's going to stakers,

right? And I say comes to market, it doesn't actually go to market. All of the net new ETH issued to me as a solo staker, it's not going to the market, right? I'm I'm compounding that on my validators and it's staying there. I'm not the only one doing this. A lot of the the staking um entities, they do this. And the only ETH that you can guarantee that's being s sold from staking rewards is for taxes. Everything else is uh up in the air. We don't know. It's very hard to tell. You can kind of do some analysis on this, but essentially it's not hitting the open market. It's not hitting it immediately at least, right? And maybe it hits it eventually. But again, like for me to say there's 2200 new ETH being issued per day, net net issued per day, that may be true. But if you're talking about

the ETH actually hitting the market per day, I would wager it's substantially less than that. Substantially less, especially because stakers don't have uh costs like miners do, right? The cost is basically 99% less. So if you look at it all from from all those angles, look at it from that lens, know that we have the demand factor here. Now, I think that the $10,000 price target that I gave in 2018 is extremely conservative. I am think that ETH can actually go much higher than that. I think that ETH becoming a macrograde institutional grade asset is extremely bullish. I think that the world waking up to the fact that ETH is a programmable store of value. It is a better store of value

than BTC. It gives you a yield if you want to stake it. It lets you do things on chain with it. It is the most decentralized asset and that's never going to be replaced. It is the only decentralized ass truly decentralized asset asset on Ethereum I should say. Nothing can replace its role uh in Ethereum. Uh and you can only stake ETH with on Ethereum. You can obviously like do some convoluted staking of other tokens but like that's not in protocol. That's for some DeFi app or something like that. You take all of these things together. Really take all of these things together and you really think about this here because you've got the supply side that I've talked about a lot in the past and how bullish that was.

Um, but the reason why the bull case ace didn't play out is because of the demand side wasn't there. But now the demand side is there in a really big way. I'm talking billions, tens of billions of dollars of net new ETH buy pressure potentially every week now, guys. Potentially every week. And friendly reminder for for those of you who don't remember, the ETH ETFs launched when the ETH price was $3,500. So the ETH ETFs are bringing in record flows while they're still underwater. They're not above what they launched at yet. So, anyone looking at the ETH ETFs, not the ETH price, the ETH ETF price because they trade at different prices.

They have their own pricing. Anyone looking at that chart just sees a down, not a down only chart, but just sees a chart that's never been like as high as it was when it first started trading. So, what do you think happens when ETH goes above $3,500? What do you think happens when this chart for for the for the ETH ETF tickers go into basically all-time high territory? Well, I know what happens, right? We get billions of dollars of inflows per day into the ETFs like BTC has. And again, this is incredibly reflexive. And just to illustrate my point further here, if we have a billion dollars that goes into ETH in one day, and let's just say the ETH price is $4,000 because it's probably not going to happen until the ETH price is a bit higher, right? That means 250,000 ETH is

bought. So we do 250,000 divided by 2200. That's the net issuance of ETH per day. That's 113 times greater buy pressure than the net issued ETH for a single day if we get those kind of flows. And that's just the ETH ETFs. I'm not including the Treasury companies here. Joe Lupin is on record on CNBC saying that he's planning on buying tens of millions of dollars worth of ETH every single day. And that's just Sharp Link. That doesn't include the other ones. So, it's not farfetched to say that right now we do already have billions of dollars of net buy pressure on ETH per week in the high billions of dollars per week. And it's not

farfetched to say that's only going to accelerate from here. And that's why I think, and I tweeted this out, we're going to have a aggressive repricing of ETH straight to alltime high. Straight to all time. I don't even think we're going to break at 4K, stop at 4K. I I think we're going to just cut through 4K. I'm going to go straight to alltime high. And that's going to cause the true FOMO to come in. And that's what's really going to push it even higher than that. So, I know I've gone a long-winded way of saying that ETH is going to go up, but I figured I'd give my reasoning. I figured I'd give my bullishness because I don't know when my next refill is going to be. So, I want to I want to be bullish here. But that's that's the that's the bullcase, guys. Like, that

that's always been the bullcase. Um, and now we've got the demand to match it, which is why ETH is going up again. Demand trumps everything, as I've always said. So, good to keep that in mind about all your investments, by the way, not just ETH. that applies to everything. Uh, but I think on that really bullish note, that's going to be it for today. So, thank everyone for listening and watching. Be sure to subscribe to the channel if you haven't yet. Give a thumbs up, subscribe to newsletter, join the Discord channel, and I'll catch you all on the next one. Thanks everyone.