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- 🥜 All-time highs in November
🥜 All-time highs in November
PLUS: Ethereum dying?
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GM to all you crypto nuts. Crypto Nutshell #416 bouncin’ in… 🦘🥜
We're the crypto newsletter that's more unpredictable than a food storm in Swallow Falls... 🍔🌧️
What we’ve cooked up for you today…
📉 Ethereum gas fees plummeting
🛸 Why Bitcoin Will 100x
🤑 BlackRock takes over
💰 And more…
MARKET WATCH ⚖️
Prices as at 5:05am ET
Only the top 20 coins measured by market cap feature in this section
ETHEREUM GAS FEES PLUMMETING 📉
BREAKING: Record Drop in Ethereum gas fees marks historically bullish signal for ETH
Ethereum gas fees have been in free-fall since March 2024.
And now they’ve just crossed their lowest point in the last 5 years…
What’s going on?
A quick side note for those of you who are new to crypto:
Gas refers to the fees a user must pay to perform a transaction on the Ethereum network.
And there’s a clear reason why gas fees are plummeting.
Right now, there simply isn’t that much demand for Ethereum block space.
HOWEVER…
That doesn’t mean that the Ethereum network is dying.
In fact, that couldn’t be further from the truth.
Layer 2 transaction count
Layer 2 networks have been popping off this year.
These L2’s are built on top of Ethereum with the aim of reducing transaction fees and increasing transaction speed.
Essentially a MUCH cheaper and faster way to interact with the Ethereum network.
And as you can see from the chart above, transaction counts have never been higher. (they’re just taking place on L2’s instead of the mainnet)
Taking a look at Ethereum’s Transactions per second (TPS), we also observe the same trend.
When taking all Layer 2’s into account, Ethereum’s TPS has never been higher.
Ethereum is actually processing 26.78x more transactions per second then when it launched.
That’s massive.
BUT…
Due to the way Ethereum works, lower gas prices mean less ETH being burnt.
(a portion of every gas fee is permanently removed from the ETH supply)
Which results in Ethereum becoming inflationary.
And that’s exactly what is going on right now.
Over the last 30 days, ETH has been inflationary at a rate of 0.612% per year.
A steep drop in gas fees could also be a bullish sign…
That’s what Bitget Research’s Chief analyst Ryan Lee believes:
“Every time ETH gas fees drop to rock bottom, it has often signalled a price bottom in the mid-term… ETH prices tend to strongly rebound after this cycle, and when this moment coincides with an interest rate cut cycle, the market's wealth effect is full of possibilities.”
Could Ethereum be about to explode? 🚀
Let us know what you think in the poll at the bottom of this newsletter. 👇️
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WHY BITCOIN WILL 100X 🛸
Over the last 25 years, the price of gold did a 10x.
Over the next 25 years, the price of Bitcoin will do a 100x.
That’s the latest prediction out from Fred Krueger.
Fred is an extremely successful entrepreneur, mathematician and now Bitcoiner.
In his latest video market update, Fred pointed out something fascinating.
In 1999, the price of gold was ~$250 per ounce.
25 years later, in 2024, gold is now ~$2,500 per ounce.
Gold pulled a 10x in 25 years. Pretty impressive.
But Fred thinks Bitcoin is about to do much better.
“Gold did a 10x in 25 years. Bitcoin will do 100x.”
Fred believes Bitcoin will do 10x better than gold because Bitcoin is digital gold.
In many ways, Bitcoin is innately superior to gold.
Just some attributes Bitcoin has over gold are:
Verifiable scarcity 🌐
Accessibility and portability 🔒
Divisibility 🧩
Fred also spotted an interesting trend.
Just today, gold hit a new all-time high price of $2,500.
If you over-lay the price of Bitcoin with the price of Gold, lagged by 3-months, here’s what you get:
As you can see, they track each other fairly well.
Fred believes gold is able to ‘sniff’ out high inflation better than other assets and therefore its price rises first.
The price of Bitcoin then follows, ~3 months later.
If this logic follows, Bitcoin should be looking at all-time highs in November. 🤨
A potentially exciting 3-months ahead. 🍾
BLACKROCK TAKES OVER 🤑
They’ve done it.
BlackRock now has the largest on-chain holdings of any ETF provider in the world.
As of this Friday, BlackRock holds a combined (IBIT + ETHA) $21.217 billion, compared to Grayscale’s (GBTC + BTC mini + ETHE + ETH mini) $21.202 billion.
The biggest reason for this “flippening” is the absolutely ridiculous amount of outflows we’ve seen from Grayscale.
Since launching, Grayscale’s GBTC has seen net outflows of $19.646 billion.
Compared to BlackRock’s IBIT which has seen net inflows of $20.388 billion.
Here’s the real crazy part though…
Since launching, IBIT has only had ONE day out outflows.
Making it the most successful ETF launch of 2024. (we’re talking about every other ETF launched in the US here, not just crypto related ones)
While IBIT is now significantly larger than Grayscale’s GBTC, BlackRock’s Ethereum ETF still has a bit to go…
Currently BlackRock’s ETHA is the third largest Ethereum ETF behind both of Grayscale’s offerings.
Since launch, Grayscale’s ETHE has seen net outflows of $2.414 billion. 🤯
It’s also worth pointing out that ETHA has yet to record an outflow day.
However, it has seen four days of net zero flows…
The institutions are here.
And they want your Bitcoin…
CRACKING CRYPTO 🥜
Trump holds around $5 million in Ethereum, nets $7 million from NFT ventures. Former President Donald Trump pivots to crypto, amassing millions in Ethereum and NFTs.
Bitcoin miners may gain $13.9B yearly from 20% shift to AI and HPC. VanEck argues that AI companies require the energy that Bitcoin miners have, and reallocating 20% of their energy capacity to this sector could be a profitable venture for Bitcoin miners.
Bitcoin, Ether Held in BlackRock ETFs Cross Those of Grayscale’s for the First Time. Recent flows show GBTC experiencing outflows, while BlackRock's ETHA saw inflows, contributing to this shift.
Franklin Templeton files S-1 for 'Crypto Index ETF' holding BTC and ETH, following Hashdex. Investment firm Franklin Templeton filed an S-1 form with the U.S. Securities and Exchange Commission on Friday proposing a new exchange-traded fund which
WHAT WE’RE READING 📚
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CAN YOU CRACK THIS NUT? ✍️
Select your answer below and you’ll be redirected to the results page. (answer explanation can be found after “Meme Corner”)
What was Bitcoin's initial block reward? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: B) 50 Bitcoin 🥳
If you were mining Bitcoin back in 2009, you’d be earning 50 Bitcoin per successful block.
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DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.
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