DAILY CONQUEST #084
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- Markets tumble while ATOM climbs.
- How is Coinbase looking to influence politics?
- Has Ethereum become more centralized?
Good morning Fam,
The Ethereum Merge has transpired, and the high emissions to miners are long gone. So how deflationary is Ethereum now? What’s its case as ultra-sound money? Let’s explore.
Firstly, I’m not the only one excited about ETH’s deflationary mechanics. Here’s what Arthur Hayes had to say:
Diving deeper into the subject, @korpi87 tweeted on one of the most epic threads on Ethereum’s tokenomics. This thread is an absolute must-read if you want to understand Ethereum’s issuance model.
And guess what? Ethereum went deflationary immediately after the Merge. May it never look back!
Maybe the Merge was a “buy the rumor, sell the news event.” Or maybe, it’s just a hangover. Whatever the case, Ether (ETH) fell considerably despite its successful upgrade to proof-of-stake (PoS). ETH price nears a $1430 support level with a good amount of momentum after falling to $1474, down -10.00% yesterday.
Bitcoin (BTC) price continues to trek lower while volume continues to increase. The trip to the $19.2k support seems a strong likelihood. According to his analyses, Bitcoin trader Willy Woo tweeted about the possibility of BTC reaching a low of $9100. BTC completed the daily candle down -2.59% to $19,700.
Behind increasing amounts of users, stakers, and TVL, the Cosmos Hub (ATOM) continues to climb upwards. The ATOM token has been in a clear uptrend for nearly 90 days with little signs of slowing down. As a result, ATOM completed the daily candle up +6.71% to $14.91. Some notable projects with native chains on Cosmos are Kujira (KUJI), Evmos (EVMOS), Juno (JUNO), and Osmosis (OSMO).
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Coinbase adds a politician-tracking “policy efforts” feature on the trading app. In a tweet early Thursday morning, CEO Brian Armstrong introduced a new feature on the Coinbase app that tracks the crypto-friendliness of each US politician. In addition, Armstrong wants to help pro-crypto candidates solicit donations for the Coinbase community. Armstrong stated,” Crypto advocacy is very important for our mission of increasing economic freedom in the world, and Coinbase will do its part to help.”
FTX leads the bid to buy Voyager’s digital assets. Crypto lender and exchange Voyager filed for bankruptcy earlier in the year after the drawdown in crypto markets led to the liquidation of many of its positions. The firm rejected FTX’s offer to purchase Voyager’s assets a month later. The preceding bankruptcy litigation led to an auction in which FTX currently leads. The offer amount is unknown.
Ethereum is showing signs of centralization. According to Martin Koppelmann, co-founder of Gnosis, hours after the Merge event, two validator entities created 40% of Ethereum PoS blocks: Coinbase and Lido Ether validator staking services. The large percentage of block creation brings the question of centralization to the Ethereum network. Furthermore, the tweet featured a pole in which 75% of the voters agreed that “This needs to change.”
- stETH is near recovering the peg to ETH after staked ETH post-merge surges.
- CFTC is prepared to be crypto’s regulatory watchdog.
- Binance Labs increases investment into Aptos Labs.
- Seventeen seconds into the Merge, the first NFT, “The Transition,” was minted on the Ethereum PoS blockchain and cost 36.8 ETH in transaction fees.
- Fortnite’s creator Epic Games store launches its first NFT-based game: “Blankos Block Party.”
- A leaked Yuga Labs document notes the firm’s intention to launch a new NFT collection called Mecha Apes by the year’s end. Yuga Labs looks to raise $50m from the project but currently denies its existence.
And just like that, the Ethereum Merge came to pass without wild price action, mishaps, or significant controversies. But, as big as the event was to crypto, it seemingly held little importance to the masses. I’m not even sure it was honored with a headline on CNBC. And honestly, I doubt it’s the kind of story grandkids will be eager to hear. Imagine:
Me in 2065:
“Kiddos, I was there when Ethereum confirmed its first PoS block…..”
Well, not all important events unfold glamorously. So it was a quiet evening with 40k geeks ( myself included) watching some coded pandas being live-streamed to inaugurate the finality. Then I minted a few commemorative NFTs and called it a night.
What’s essential is the Merge transpired smoothly and highlighted the proficiency of the Ethereum devs. May they continue quietly building the future in the background while the rest of us squint at candle-laden trading screens and yell at each other across Twitter.
Much honor. 🙏
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