Today’s edition is brought to you by Crypto.com

Start earning up to 5% back on all your spending! No annual fees. Sign up for the Crypto.com Visa Card today to receive your instant $25 bonus!

GM to all you crypto nuts. Crypto Nutshell #429 findin’ the truth… 🕵️🥜

We're the crypto newsletter that's more mind-bending than questioning reality with Neo in the Matrix... 💻🕶️

What we’ve cooked up for you today…

• 😨 ETFs continue to bleed

• ⏳ It’s only a matter of time…

• 📉 Is Ethereum dying?

• 💰 And more…

MARKET WATCH ⚖️

Only the top 20 coins measured by market cap feature in this section

ETFs CONTINUE TO BLEED 😨 

BREAKING: US spot bitcoin ETFs continue to bleed with $37 million in net outflows

After yesterday’s drawdown of ~4%, Bitcoin has now somewhat “stabilised” at ~$57,000.

(It even bounced to a high of $58,500 early this morning)

However…

The US Bitcoin ETFs are still feeling the pressure.

Yesterday, the Bitcoin ETFs experienced net outflows of $37.2 million.

That’s a considerable drop from the prior days outflow of $287.8 million.

But it does mark the sixth outflow day in a row…

Here’s the breakdown:

1. Grayscale GBTC: -$34.2 million

2. Fidelity FBTC: -$7.6 million

3. VanEck BTCW: -$4.9 million

The only highlight of the day for the Bitcoin ETFs was Bitwise, who saw $9.5 million in inflows.

BlackRock, ARK Invest, Invesco Galaxy, Franklin Templeton, Valkyrie, WisdomTree and Grayscale BTC all saw zero inflows/outflows.

And on the Ethereum side of things, the story was much the same.

Yesterday, the Ethereum ETFs experienced net outflows of $37.5 million.

The only outflow came from Grayscale’s ETHE, which saw $40.6 million exit the fund.

And the only inflow also came from Grayscale’s ETH, which saw $3.1 million enter the fund.

On Monday, we broke down 6 key dates to watch this September. (check it out here in case you missed it)

The first of those important dates is coming up tomorrow.

September 6, the Bureau of Labor Statistics is set to release its report on Job growth and unemployment.

Fingers crossed, unemployment doesn’t come in higher than expected again… 🤞 

START MAKING EVERY TRANSACTION COUNT 💳

If you haven’t got a crypto card yet, you’re living in the past.

With a Crypto.com Visa Card you can spend your crypto anywhere you want.

The benefits are insane.

Not only is there NO monthly or annual fee, you also get up to 5% back on every transaction.

With your Crypto.com Visa Card you can:

• Enjoy 100% cashback on Spotify, Netflix, and Amazon as a new customer. 🍿

• Get complimentary access to airport lounges and elevate your travel experience. ✈️

• Flaunt your style with the sleek and stylish metal card 🌟

Here’s how to get your $25 bonus and start earning up to 5% back:

1. Click here to Download the Crypto.com App

2. Sign Up: Use our referral code - Nutty - for your instant $25 bonus.

3. Get Your Crypto.com Visa Card: Start making transactions, earning rewards, and enjoying the perks!

Start making every transaction count - the future is here.*

IT’S ONLY A MATTER OF TIME ⏳

At the end of the day, Bitcoin will hit a new all-time high.

It’s only a matter of time.

That’s the message out from out macroeconomic analyst, Pentoshi.

Pentoshi is a technical analyst who regularly posts his charts, trades, and macro predictions on X.

He's amassed a following of over 800,000 investors for 2 reasons:

1. His impressive technical analysis

2. His stunningly accurate macro calls

To maintain his anonymity, he writes under the pseudonym "Pentosh1" and uses a cartoon penguin as his avatar. 🐧

In his latest post, he broke down why new Bitcoin all-time highs are inevitable:

There’s 3 reasons why Bitcoin is genuinely unstoppable in the long run:

1. Bitcoin has a fixed supply 🔒

2. Bitcoin is programmable money 🤖

3. Central banks will continue to print infinite fiat money ♾️

When will Bitcoin make new all-time highs?

Pentoshi thinks that nobody truly knows:

Finally, Pentoshi finished with some much needed hopium:

At this point, it’s just a matter of time. ⏳

IS ETHEREUM DYING? 📉

Ethereum network revenue has plummeted by 99% since March 2024.

And at first glance, that sounds terrible…

But there’s a good reason for this drop in revenue.

Let’s break it down.

According to data from Token Terminal, network fees hit their highest levels for the year on March 5 at $35.5 million.

Today, network fees are at ~$500,000 per day.

The reason for this is the Dencun upgrade which went live on March 13.

The Dencun upgrade significantly lowered transaction fees on Layer 2 networks.

And as a result, Layer 2’s have been popping off this year.

Take a look at the chart below.

Transaction counts on Layer 2 networks have doubled in the last six months.

So if Layer 2 network transactions are up, then why is Ethereum revenue down?

Well here’s the thing…

There are a LOT of Layer 2 networks out there right now competing with each other.

And this highly competitive environment has encouraged a race to the bottom with L2’s offering lower and lower transaction fees to customers.

Meaning, fewer users are settling transactions on the Ethereum base layer. (opting to use L2 networks instead)

Ultimately lower transaction fees are a net benefit for users of the Ethereum ecosystem.

However…

Due to the way Ethereum works, less base layer activity 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 0.71% per year.

So Ethereum finds itself in a bit of a weird situation right now.

On one hand, network activity on Layer 2 networks is booming due to extremely cheap transactions.

But on the other, ETH is now inflationary and base layer revenue is falling…

For Ethereum revenue to once again increase, layer 2 network would have to continue to increase at an exponential rate.

CRACKING CRYPTO 🥜

Trump’s DeFi venture to use Aave and Ethereum not Bitcoin with open-source approach. Trump's venture into DeFi partners with Aave for new credit account system.

Bitcoin investors ‘relatively profitable’ even as the bull market takes a pause. Bitcoin price continues to descend toward its range lows but most BTC investors are still “relatively profitable.”

Kamala Harris Is Not Directly Accepting Crypto Donations, a PAC Is, Coinbase Says. A spokesperson for Coinbase said the Future Forward PAC, which is dedicated to supporting Kamala Harris, is accepting crypto donations, rather than her campaign directly.

Crypto.com dominates USD support exchange volume as August sees $193 billion in trades. August marked the second-highest month for USD support exchange volume in 2024 with a staggering $193 billion in trades.

WHAT WE’RE READING 📚

Want to get even smarter? Check these out.

p.s. all completely FREE (one click subscribe link)

• Raremints (link) - Daily crypto news

• Bullseye Trades (link) - Daily stock market tips

• Crypto Pragmatist (link) - Actionable alpha 3x a week

• The Hustle (link) - Get Smarter on Business and Tech

• Your Next Breakthrough (link) - Personal growth with Mark Manson

• The Neuron (link) - AI trends and tools to keep you ahead

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”)

MEME CORNER 😂

Because what would the crypto world be without its share of memes?

Trivia Answer: C) IBIT 🥳

BlackRock’s Bitcoin ETF trades under the ticker symbol IBIT

GET IN FRONT OF 64,000+ CRYPTO INVESTORS

Advertise with Crypto Nutshell to get your product or brand in front of the crème de la crème of crypto investors. Crypto Nutshell readers are high-income earners who are always looking for unique or interesting offers.

Get in touch today.😎

HOW DID WE DO? 🤷

We read every comment submitted in this poll and love to hear what you guys have to say. 😁 (bonus points for suggestions 🍪)

NUTCASE REVIEW OF THE DAY 🔍

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.