Hong Kong ETFs, Arbitrum BOLD update and more - The Daily Gwei Refuel #765 - Ethereum Updates

Transcript

hello everyone welcome to another episode of theway refuel where up latest news in etherum ecosystem I'm your host Ando to the 16th of April 2024 all right everyone let's get into it so apologies for missing yesterday's episode everyone I know that a Monday episode rug fu is always bad because obviously there are no episodes on the weekend so it's been 3 days since the last refuel but I'm back today and just before we jump into the news I wanted to quickly give a heads up that I will not be able to do a refuel from May 1st to May 3rd so May 1st 2nd and 3rd I will not be doing refill that's Wednesday Thursday Friday because I will be at eth Sydney so I'm hoping to see whoever is going at eth Sydney uh I think the actual kind of uh conference is happening on like the

Friday Saturday Sunday but there is a side there is a couple of side events here and there and I'm sure some some kind of meetups and stuff so I'm hoping to see whoever they're really I know that there isn't going to be a lot of international folks there probably because it's just so far away you know I always complain that for me it's really far to travel to Europe you know the US and and really in most places from Australia but it works the other way as well obviously so yeah but I still think it's going to be really great I'm judging the hackathon so I'm really looking forward to it and yeah I mean it's it's very close to where I am in Melbourne so only an hour and a bit of a flight there so and no jet lag that's the main thing so I'm looking forward to

it there but just wanted to give you guys a heads up but I'll keep you up to date on that and remind you as we get closer there but going to jump into the news now I have left a bullish rant for the end of this episode so if you want to listen to that it's all about the markets hopefully won't go too long about it but I think that it's relevant right now because there seem to be it seems to be a lot of bearish energy out there right now and I got to set that straight I got to do my bullish rant to set that straight but first thing I want to jump into was this announcement out of Hong Kong that they have approved applications for spot BTC and eth ETFs managed by China asset management bosera and hash key and this has kind of got

the hive a bit stirred The Hive being I guess like crypto Twitter a bit stirred you know there are people saying that okay well this is not really that bullish because Hong Kong is only Small Potatoes compared to the US which isn't necessarily wrong like Hong Kong is obviously very small compared to the US especially when it comes to ETFs as um ETFs are really a US phenomenon and have been really really popular in US markets but they're being exported right other markets around the world uh Contin continuing to adopt the ETF standard uh in different ways like there etps and etn in Europe I believe there are ETFs here in Australia I don't know what it's like elsewhere but this vehicle this tax advantaged vehicle that is just like completely managed by these large asset managers they handle everything for you all you really have to do is buy and

sell it and you can trust them to handle everything for you because it's all fully regulated it's obviously the tradire system here but they're obviously getting more integrated with crypto um you know it makes a lot of sense right it makes a lot of sense from uh from a bunch of different perspectives here so I expect this Market to grow and obviously it's funny that Hong Kong has approved a spot e ETF before the US has approved one and honestly I'm not going to go on another rant about the US eth ETF at this point it's a waiting game you know as I've said before I I kind of changed it to like late April if we don't hear anything by late April I'm going to like lose all confidence in May 23rd being an approval there but I think at this point you know whether it's approved or denied

the market is pretty much priced in a denial so I think that even if it gets denied the market action is going to be quite muted there but I'll I'll probably go over that when I talk about the markets a bit later here um but yeah just great to see that Hong Kong has approved these things here and I'm curious to see what the demand is actually like I'm curious to to see what the uh what the numbers are like right because as I said like their ETF Market is Tiny compared to the US but they're ramping it up and they're trying to ramp it up relatively quickly and especially when it comes to crypto right this is a this is an asset class that Hong Kong and I guess like China broadly have not been very favorable of in the past you guys know that I know China's banned

Bitcoin like a million times at this point they kicked out the Bitcoin miners which had to you know completely leave China and go elsewhere so they've just generally been hostile towards crypto but they seem to be embracing crypto more I know that Hong Kong exists kind of separately to China in its own special economic zone I think from from my reading I'm not I'm not an expert on Chinese politics or or Asian politics generally but from my reading Hong Kong basically exists as a way for China to have its cake and eat it too what I mean by that is essentially it gets to have you know that authoritarian control that CCP control over over um all of Chinese M China Mainland as well as Hong Kong but Hong Kong gets this special designation of being like a special economic zone where it can be more

Progressive and more loose and more kind of like western style e um you know economic system tradire system or financial system that is available in in mainland China there so there is basically like a two- tiered system here under the One Umbrella still of of the CCP that's my understanding but someone's better versed on Chinese politics please let me know there because I think I triggered a little bit of people when I said that China was getting uh these ETFs not Hong Kong to me I mean it's like the same thing like you can say oh they're distinctly separate I'm like yeah okay maybe from like a a financial perspective from like an economics perspective but from like a government social perspective uh they're definitely under the same there at least from my read but as I said open to being corrected on that one there we're going

to leave that one at that uh we have a fresh update from coinbase today well I guess like some fresh coinbase versus the SEC news now this is Paul GRL coinbase's Chief legal officer tweeting out that uh yesterday coinbase filed a brief asking the Court's permission or not yesterday I think this was like 3 days ago coinbase filed a brief asking the Court's permission to seek an interloc interlocutory that's how you say that appeal in uh coinbase's SEC case on this controlling question whether an investment contract requires something contractual we think it does the SEC disagrees now from what I've read from the legal experts this seems like another long shot from coinbase to file this appeal against the SEC here um but I obviously agree with coinbase's

position here that an investment contract requires something contractual whereas the SEC does not agree with that they believe that an investment contract can exist without an actual contract and this goes back to I think like how the Securities laws were written like what 100 years ago or 990 years ago and about how they were actually written to be uh purposely broad because at the time the people writing these laws and um you know the Regulators in in the room knew that uh there wouldn't just be like one asset class or two asset classes there's all types of different asset classes and the SEC to Be an Effective regulator needed to have a kind of broad set of uh interpretations into the law they could take in order to go after any kind of Bad actors that would try to get around

this or try to essentially find loopholes in this which makes sense on the surface but in practice as we've seen because these laws haven't been updated in so long what ends up happening is that they're so dated and they just don't apply to some asset classes or they don't apply cleanly to some asset classes especially when it comes to crypto here so obviously I'm rooting for coinbase here to win this this kind of appeal but as I said it is a long shot it is not something that is typically won uh by the the defendant here and the SEC obviously disagrees because they want to have as broad uh you know as Strokes as possible to go after everyone that they can here but you know I'd be more sympathetic to the sec's cause if they actually had clear guidance on crypto for these companies

to follow but they just don't right like that's that's that's the heart of this issue when it comes to the SEC versus crypto just generally there's just not clear guidance there's not clear guidance on what you can and can't do when it comes to crypto stuff there's not clear guidance on uh you know what what happens if you actually do run a foul or how to essentially uh kind of um not ask for forgiveness but basically make it make it better if you run a foul and you didn't know you were running a foul like stuff like that right or make amends for it like there's just nothing like that all there is is the SEC being incredibly hostile towards everything crypto and not giving any clear guidance on anything and we all know that I'm preaching to the choir here but I'm going to keep uh I guess like an eye on

what on What Happens here with the SEC or with with coinbase doing this appeal uh and I'll keep you guys updated on that all right moving on to some tech related news so Georgio is here from Paradigm who is the lead of the W client uh effort here to announced I think today yeah that they have open sourced something called The W alphanet so the W alphanet is an OP stack compatible test net rollup that maximizes W performance and enables experimentation of bleeding edge ethereum Research Now what's really cool about this and you can actually read this in the announcement post I'll link it in the YouTube description below but my read on this is that WTH would work really well uh or the research and development going into WTH would work

really well with everything that bass is trying to do right now because as you guys know bass is trying to scale up their execution layer which is the evm uh to one gagas per second now to achieve that is a huge feat like to get there is is a long journey and it's going to be a huge feat to get there because of the fact that they're trying to inch out as much performance as possible out of the evm and to do that they're going to need to make better clients they're going to need to make more performative clients now what the most performative I think execution layer client right now I believe is WTH and now reth is a very new client it is is definitely not ready for you know large scale production I think you can you can run it with your like home

validators if you want but it's definitely not ready for like large scale production or anything like that but it is being uh worked on actively and it is something that can apply not just to L1 but all the learnings can apply to these evm compatible l2s so I think obviously given that the re alphanet is working with the op stack this is definitely going to help base in a really big way here and it's going to allow Bas to scale up massively now there's also a Ive thing here as well where Paradigm is a huge backer of optimism and Paradigm is incubating the W effort here and paradigms one of paradigm's co-founders is uh well not anymore he I mean par one of paradigm's former Co I guess like he's still a co-founder but like he left um it is uh is what's his name Fred uram he was the

co-founder of coinbase alongside Brian Armstrong there so obviously there's like a bunch of vested interest here to make this uh kind of succeed and to help along with this and to basically play off of the different Investments at Play but that's a good thing it's a net good thing that the financial incentives are leading us to get uh to getting know more performative l2s and better performance for everyone and as I said it is open source General this is open source so it really does get back to the community it's not some closed Source thing that they're building that no one can benefit from everyone can benefit from this which is uh obviously really really awesome there but you can go read this announcement post for yourself I'll link it in the YouTube description below for you to do so all right just a tweet here from

David H that I thought was quite interesting so I've been talking about this for years at this point but uh when it comes to Erp 4844 or blobs they share a separate fee Market to ethereum L1 as you guys know you know as I said I've been talking about this for ages but David here posted a couple of pictures where he said that uh the ethereum L1 you know normal L1 gas price went to 500 gay during the selloff that we saw over the the weekend there and the ethereum blob price stayed at one way or which is basically free which Illustrated the independent fee markets that we see here and this is what I've been banging on about for a long time now is the fact that we do now that we have these independent fee markets essentially any spiking of gas fees on l2s is going to

be because of the execution side where essentially the execution side gets hammered like we saw with Bas and then those fees go up because of that it's not because of the data side which is at ethereum L1 and when ethereum L1 has these crazy fee spikes you're not going to see the same fee spikes on on the L2 side because the data doesn't Spike it's stays basically free blob I should say blob um fees stay basically free whereas normal ethereum L1 is as you can see up to 500u or even even even above that there now I will say there is some correlation between I guess like when L1 gas fees Spike up like this and L2 execution fees because obviously most of the time when you see L1 gas fee Spike up like this is because of some uh Market volatility whether that be

volatility uh to the upside or to the downside it's still General market volatility and when you see that basically what you get is essentially uh you know the uh the fee Market going crazy on the L1 side but also on the L2 side because the l2s still work off the same markets right so the L2 execution side may go crazy as well and you may see Fe spiking there but I I just really enjoy the fact that we have separate fee markets between the blobs and the ethereum L1 and the fact that it's actually working and we can see it working um and the fact that the l2s aren't influenced by this anymore so I just wanted to point that out there because I thought it was a really cool thing uh to to kind of uh analyze there all right so I've been talking a

bit about L's market share coming down recently well I do check this dashboard from Hill Dobby quite regularly it's his ethereum staking dashboard and as you can see here L's market share is now down to 29% now I believe it's actually lower than that if we go down here uh and we kind of see the current market shares L's market share is at 28.8% uh and coinbase is is at 13.8% so they've both come down quite a bit recently uh you know obviously they're still quite high but they've come down quite a bit recently and as you can see it's mainly due to a lot of these other um kind of players growing especially players like ethery which is about to flip binance actually and be number four uh which is just a crazy amount of growth there uh but there's been others here you know as as you scroll down you

can see them like Renzo for example man Manel bunch of others uh but what illustrates this even better is these tables here that show you what the inflows have been like over the past week past month and past 6 months as you can see here over the past 6 months ethery has almost doubled Lido's uh eth that it's taken in like that's just insane and that's just one of these new entities that have kind of shown up here Renzo has almost taken in as much eth as lier over the last 6 months same with mantel same with um uh uh yes with man and then you got like the longer tail here like Kiln ever Stak swell and uh puffer isn't listed here but puffer took in a ton of St as you guys know that it plans to um vampire attack which basically means withdraw it directly

from Lio and then restake it on their puffer validators and that's going to take another chunk away from Lio here so we could really be seeing Lio go to like 28 27% relatively soon with that vampire attack there and you guys know that 22% is that kind of well agreed upon threshold that everyone was talking about basically saying that we need to get you know no entity should be at above 22% and I don't know if we're going to get there before Li strikes back because this is the main thing I wanted to talk about is that yes slos market share has come down a lot but obviously we know that a large part of that or pretty much most of that is due to the fact that people have been going with these other staking providers for reaking right their LT tokens instead of

just lsts and the fact that they're doing token incentive programs which is driving the activity there which there's nothing wrong with that because ler also did token incentive programs at the start of when they you know started and and they got going there and it's obviously put a lot of pressure and competition on Lio now which is a net good for everyone but what I mean here by L striking back is that I'm I'm for sure not I mean I don't know if this is this is actually kind of publicly being talked about on the forums but like I assume that Lio is working on their own uh kind of LRT or converting Lio into an LRT or they might just go scorched Earth and make Lio into a reaking platform uh on its own like outside of IG layer altogether they just become their own

reaking platform here I'm going to be very curious to see how they managed to do this because of the fact that Lio doesn't have any tokens left to give out so they've got a few different options here maybe they can take from their existing Treasury and and give those out and and I meant like um they've already got tokens they have to take it from the treasury they can't just take it from an existing pool and pay it out or they don't have a token yet people can't Farm them to to get a token they already have a token you know their their incentives can come from their treasury but then they have to go through the Dow to do that right they and it's it's a lot more messy than just having this unilateral control over the tokens early on but they can do that so I'm assuming they're

going to strike back in some way especially once the puffer vampire attack happens which I think is happening soon uh from what I've seen from their road map there so yeah they're under the pressure that's for sure and they're under the pump in order to get something out in order to stop bleeding market share here uh but I mean even still like they've come down from what almost 33% down to let's say they get down to 28% that's a 5% reduction in their market share that is is is pretty big but when you actually kind of put the numbers here uh 5% reduction in market share none of the other providers except coinbase even have over 5% market share so that just shows you how dominant Lio has traditionally been here but I'm very glad to see that they have competition and I'm I'm super glad to

see just a more distributed and more I guess like diverse thinking ecosystem and you know I saw some people kind of posting on Twitter saying that oh it's arguable whether or whether all these other providers are better than lier it's like well okay we can argue over the differences between the providers differences between the you know the staking pools differences between the risk profiles and so on and so forth but I think we can all agree that having more of these providers and more of them being independent more of these independent pools is a net good for everyone I don't see how you could say that was bad and I I really don't like that line of thinking because it basically means that oh okay well we should only settle for Lio and we shouldn't compete with them and Lio is the best you know Li is the best we can

do I think that's a really bad line of thinking especially in a free market and and crypto is one of the freest markets that we have uh and I just don't think it's it's a great way to think about these things so that's when that you know when I look at this I look at the fact that okay yes these other things may be more risky maybe because they newer they might have a higher chance of a bug in their contract and so on and so forth but hey you know Lio shouldn't just exist as this pristine thing that everyone thinks is perfect they need competition they should have competition and they should compete freely in the in you know in the free market rather than having a I wouldn't call it a monopoly but they basically had like a really unique starting point where essentially

they were first to Market they got a lot of market share in before staking withdrawals were enabled they started uh you know in the bull market and then in the bare Market no one could withdraw from Lio so essentially what happened is that the uh fair value of St went down a lot because people were selling in the open market but by the time withdrawals was enabled again that fair value basically went sorry that that um Arbitrage opportunity Went Away St went back to fair value and no one was withdrawing from Lio then so now that they've got actual competition what ends what ended up happening is that there may not be much uh eth uh being withdrawn from L directly right now but a lot of eth is going into other provid now instead of lios so essentially what's happened is that not only has

their relative market share gone down but their real market share has has also um gone down now as opposed to these other kind of solutions out there so yeah it's just been cool to see that competition play out there and I'm hoping it continues uh there all right so a big announcement from arbitrum today so they've announced that uh fraud proofs have taken them to a stage one roll up but today with bold we're on our way to becoming a stage two rollup so bold is a permissionless validation uh uh mechanism on arbitrum which is now live on test net so you can read this medium post which I'll link in the YouTube description below to uh check out what this is but yeah I mean it seems like arbitrum is actually going to be the uh first stage two rollup or

at least like the first stage two rollup that has uh you know activity on it because I know there are some other stage two rollups out there right now if we go to L2 be.com you can actually see these so there is other stage two rollups like dgate V1 and I believe fuel V1 but I mean fuel V1 has like nothing in it like there's not even $1,000 of tvl in it and dgate V1 has like $60 million of tvl in it so very small potatoes as we say compared to arbitrum 1 which has $16.2 billion of TBL in it so they are stage one not you know the next ranked stage one which is DDX V3 only has 233 million TV in it the rest of them are stage zero or non applicable here so arbitrum getting to stage two is

a pretty big deal I I believe that by the time they get to stage two op stack change will probably be at stage one um but yeah Alit is just killing the game when it come when it comes to the fact that they're basically getting to uh stage uh stage two here and they're doing that with with arbitrum bold and I've talked about bold before but the main benefits are permissionless validation so essentially anyone can run their own validator notes and contribute to the consensus process helping to secure the network and validate withdrawals back to ethereum uh there is enhanced security pulled challenge funding and uh a bunch of Foundations uh putting into place as well here um and this is really critical here anyone running their own validator nodes and being able to contribute to the consensus process is critical for allowing for permissionless uh fraud

proving because uh fraud proofs are currently whitelisted on arbitrum you can see here that they currently allow 14 whitelisted a actors watching the chain to prove that the state is correct but by replacing this with permissionless validators via bold arbitrum chames will be able ble to address this particular concern and of centralization and move further towards greater decentralization and achieve a greater ethereum alignment so you can go read the blog post full a full breakdown of this I'll link it in the YouTube description below but it's great to see that arbitrium is well on its way to achieving stage two here and I believe the op stack chains will be here one day as well but they still need to get to stage one they're going to have permissionless fraud proofs from the get-go I believe so they're going to but then they're going to have other things

that they still need to hit to get to stage two and you can see here that um to for Arbitron one to get from stage one to stage two the fraud proving needs to be open to whitelisted act actors uh upgrades unrelated to onchain provable bugs provide less than 30 days to exit so it needs to provide more than 30 days to exit and the security council's actions are not confined to on train provable bugs that that has to be confined there so to get to stage two you not only need uh permissionless fraud proving you need those other two things as well so if op uh stack Chains Get permissionless fraud proving but still don't meet those other two criteria then they're only going to be stage one they're not going to go to stage to so there is multiple criteria here there isn't just like the

permissionless fraud proving there's there's more than that here and as there should be honestly we should be you know the bar for getting to stage two should be quite High uh because then we have better guarantees around decentralization and security there but yeah anyway we can go give that a read from the arbitrum team I'll link this in the YouTube description below for you to do so all right last thing here on the L2 front just wanted to kind of highlight this metric from Unis swap so they kind of have been on base for a while now their protocol but the growth has been staggering over the last two months so they said here that in January the base volume on unisoft protocol was $329 million in February it was $675 million but then in March it was almost $10 billion and then halfway through

April it is already at $7.8 billion so essentially when from going from Jan to Feb they like doubled their volumes but then going from Feb to March they like more than 10x their volumes and it looks like they're going to do another near 2x this month uh depending on volatility right depending on on the activity that happens there but yeah it looks like April is going to be an alltime high record month and it just goes to show like how much activity was happening in March I know a lot of it was due to like meme coins a lot of a lot of mania around that obviously over the past few days or really the last the bulk of it the last two weeks uh prices have come down especially over the weekend you know we had a big crash which I'm going to talk about in a sec but still

generally the volumes have been up massively here and if you kind of look at this more than just like a month- on-month basis maybe you look at that like a 3 Monon on three month or 6 month on six month or year onye basis yeah it's just been an incredible amount of growth for UNIS swop on base and this is just Unis swop guys there are other dexas on base there are other protocols on base so and and obviously Unis swop is on other l2s as well so it's not just Bas here which is crazy to me so I mean I haven't looked at the numbers of eth L1 plus the l2s for unisoft volume but it could be for the month of March over 100 billion there just on unop alone so that's that's pretty crazy uh there but anyway enough on that I wanted to leave

a bit of time here to go over the market so I did give an updated market analysis on Twitter over the weekend where I said two weeks ago I mentioned that I didn't think retail investors were here in any real way and all the market action we had been seeing was led by crypto natives doing Max PvP with a bit of a wealth effect from BTC getting new money via the ETFs well given the brutal selloff that has happened to most of the crypto Market I think I was pretty on The Mark with my analysis so where to from here well Weston man I can't tell the future but do feel like at this point the board has been reset and we can soon start a new game which is the new ret the the real retail Le part of the overall bull market the bull market

isn't over we're just in intermission so I've talked about this for months now on the refill probably going on like a year I don't know but like at least for the last few months where I've basically said that I don't believe that the you know normies retail investors are here in any big way maybe there's a little bit of them here but they're not here in any big way and I wanted to find what I mean by like these retail Normy investors so what I mean by this is people who are literally putting in new money and that haven't touched crypto since last cycle I'm not talking about the people who uh are here right now and they're putting uh you know new money in uh and and have been around for a while and they're putting new money in this doesn't apply to those people because

those people to me are not the normies retail investors they're already in crypto they're just putting more money in yes that's new money but that money trickles in it's not like a flood of money and why why it trickles in is because these people that are already here they need to get money to put in in the first place they need to get paid from their job which happens you know once a week once every two weeks once a month they need to make money elsewhere whatever they're doing it's not like a you know a sudden Rush of money it's a continual drip and I remember I think I mentioned this like a long time ago is that this is what happens in the uh kind of like bare markets in the crab markets and then in the early bull markets you have that for it to be a real retail Le

Mania bull market you need a surge of new money coming in net new money from net new people who haven't not been around since at least the last bull market or not around ever and the only place that has been happening is the BTC ETFs outside of that there has been nothing not on eth not on all the other assets out there especially not on all the other assets out there maybe a little bit on E but on all the other assets out there it has not been happening memecoins I guarantee you most of the money that went into meme coins was crypto natives now the reason why I'm so confident in this and I'm even more confident now is because we sold off guys and you know what didn't sell off very hard BTC and you know why because it has had new money inflows via

the ETFs but the rest of the stuff sold off absolutely brutally like even the the The Darlings have sold off crazily I mean you can go on coin uh on coin market cap or coin Gecko and you can look at the performance of some of these things over the past couple of weeks and how brutally they have sold off a lot of them have retraced their entire like years like the last 3 months worth of price action which was basically all of their positive price action because towards the end of last year we did see some stuff pick up but it wasn't really like the last kind of 3 months or so like January February March where it really kind of picked up steam and again to me that was just crypto natives maybe we saw a little bit of new money coming in last month because it was getting

really you know crazy and there were headlines because BTC went to alltime high and all that but it didn't sustain itself because of the fact that BTC did not sustain its alltime high it is not in the media every day where it the media is saying BTC hit another alltime high or eth hit another all-time high it was basically in there for a brief period of time brought some maybe some new money in but other than that it it hasn't really materialized and I want to stress here this is a good thing guys this is a really good thing and why this is a good thing is because I've been talking for a while about how I believe that the four-year cycle is dead I still think the fouryear cycle is dead but that doesn't mean that we should just like accelerate the cycle to the point

where we essentially turn it into like a 2-year cycle or something like that or a 2 and a half year cycle I would rather the cycle last longer than shorter and if you actually look at the chart BTC for the last 7 months except for April was green monthly candles the entire like for 7 months straight that is a crazy amount of positive price action for a crazy long period of time and that was obviously because of the ETF hype like 7 months ago was uh was really where the ETF ETF hype really kicked into high gear and then it just it kept going from there but now that we've had the ETF hype now that the ETF narrative for BTC is fading now that it has like completely faded for eth the market is starved for a narrative and because there is no new money coming in

it can't create a new narrative so essentially what that needs to happen now in my opinion is that we need to have some time where we settle down where prices settled down I don't know if that means we're going to go further down from here I don't know if that means we're going to go you know Spike up again and then come back down again but I'm more confident in sideways movement for a little while than I am in just kind of you know bottoming local bottoming here and then going straight back up I would rather there be you know even just like a couple of months of Sideways from here to set ourselves up a nice base so that we can reset start a new game as I said in my tweet here and then we can lead us into the real retail lead bull market and you'll know when

it's the real retail lead bull market guys it is going to be a market where everything is going up and the stupidest things are going up it's not going to be a market where these isolated things are going up the things that are going going to go up the most are going to be things you don't even hear about on crypto Twitter because they're going to be from people that aren't even on crypto Twitter bidding these things up so I do I just want to really stress to you guys that the bull market isn't over but we've had you know since basically June of last year really I mean you could argue that started there till today has been crypto Natives and and the only new money has been going into the BTC ETFs uh you know once they happened in January there which kind of kept us

going for a little bit kept BTC going and it's kept BTC relatively you a really well but in a really good position I mean if you actually look at how much BTC has come down versus like most other things not so much eth eth's come down a bit more but like not so much eth but like a lot of the other things out there have just come down so massively and I I wish I had a chart in front of me to show you guys what this kind of looks like but I do have a chart on my other screen I just want to put this in numbers for you guys if we go to btc's like new all-time high that it's set and what the price is today btc's come down by about 15% right now I'm not going to go to a meme coin I'm going to

go to to to some of these other things out there so let's go to something like like soul for example right soul was is obviously you know had a lot of positive price action into late last year also into this year and there's been a lot of stuff happening on salana there but Soul since it said its alltime not alltime high since it said its local high about a month ago is down around 36% as opposed to btc's 15% so obviously it's down a lot more there and I think eth and I'm I'm not actually even sure what eth is down here eth is down around you know 24% so as you can see on the downside eth performs better than everything else but BTC performs better than everything else right and then if you want to look at like the meme coins I mean Jesus like uh let's just let's

just check Bon for example which uh topped I believe 4th of March it's down 70% so this is what I've been trying to I guess like get through to people around kind of speculating on these things there can go up a lot shortterm but they can absolutely Crush as well shortterm guys like if you're trying to hold this stuff long term I'm not even measuring this stuff against eth by the way it's just against USD this is where eth really shines eth shines as a long-term solid story of value investment same with BTC they may not go up as much well they definitely not going to go up as much as these longtail assets over the short term but they're also going to protect you from the overall Market sells and for overall Market downside as opposed to sitting in something else now obviously cash is

going to be the king here but that if you're trying to play kind of like the market trends here you know maybe every 3 months or something or every couple of months or something you're going to have to play it really right to not lose out and not to not let net lose out especially if you're somewhere where you have to pay taxes on these trades it becomes a a just a a really shitty game it becomes a game that consumes all of your time and for little benefit at the end of the day so that's another thing that I I thought was really important is just like you got to look at these assets you got to look at the fact that yes they can go up a lot but then you got to look at the fact that they have a lot more potential downside as well

because they're the first things that people sell off when the market is not going great they're usually like towards the later stages of what people will buy when the Market's going good especially when it goes crazy but they're definitely the first things people sell off when the Market's not going and in big size because they don't have as much liquidity their market caps are much smaller so they're a lot easier to move in either direction and then also if we go sideways for a little while they're probably going to be the last things to recover if they recover and BTC and eth will probably just creep up but these other things they won't really catch too much of a bid and then they're just going to be crushed against B BTC and eth right so trying to play these things very very difficult to do and that's why

I've always said you know eth's a long-term investment it's not going to give you 10 times returns overnight or anything like that uh but it is going to uh you let you sleep well at night rather than holding one of these meme coins or anything like that nothing wrong with speculating on them but you need to know what you're getting yourself into but I think on that note that's going to be it on the market side for today I there is other stuff that I could go into but I didn't want to kind of rant too long about this because I want to give the market some more time to settle down and bake to see exactly where we are but I'm fairly confident that we're in a reset period here it's not going to happen overnight it's going to take a little while to reset the

market here but it wouldn't be surprised to see Ethan BTC hold their ranges that they've had for a little while uh and then slowly continue from there but anyway on that note 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 newsletter join the Discord Channel and I'll catch you all tomorrow thanks everyone