How Crypto Culture Becomes Just… Culture (tl;dr)
As always, theyre going to be links in the show notes, so you can do a deeper dive into any of these topics and before we get started, i want to quickly shout out so rare, which is defys biggest platform for collecting trading and playing fantasy soccer. They have a polished front end and, if youre, a top shots person or a fantasy sports person uh well, this is the app for you so check it out and the link in the show notes to get started. So raul paul returned to the podcast this week and its been really cool to see raul go deeper down the rabbit hole and he really gets what makes ethereum and defy an incredibly exciting asset class. And as we move into mania season question mark, it gets really easy to get caught up in tiny details and the micro ebbs and flows of market sentiment every release, every piece of news, its also stimulating and can definitely be overwhelming david and eric connor call this Ethereum brain and talk about it in depth in this weeks, layer, zero episode so definitely catch that if you didnt but raul, circumvents ethereum brain by staying zoomed out, it is his job. After all, as a big macro trader in the end, ethan is the greatest trade and the thesis is simple. Really, it is clearly money beneath his technology. We know that too um eth is also a platform of which people are building a lot of different applications.
So whether we talk about community tokens, nfts d5, a whole bunch of stuff, you know i came out with a piecing global macro investor last month called the greatest trade, and you know heres. My macro head on again is okay. Weve got this. Adoption of that is kind of exponential right, its growing at least twice the rate of of bitcoin and its by far dwarfing the rest of the space. Then the eip 1559 comes along and that reduces the supply, so thats clearly bullish for the price. And then you look at the on chain analytics and everyone is bloody staking it because now its a pretty clear run between now and eth 2.0. So why would you not, if youre, a long term holder so everybodys staking it so thats taken a ton of stuff off the exchange, theres tons that have gone into just holding tons that are locked up in d5 tons that are locked up in nfts and youre Left with i dont know, as of today, 11 of the entire supply of ethereum available and its going down every day and the demand is going exponential. The only outcome is an exponential rise in price theres, no other outcome, technology always wins and adoption happens on an exponential scale. Ethereum is positioned as the most salient technology in the space, with the most developed ecosystem with the most fundamental momentum. For me, this episode was like insanely calming, especially as ive been like fomoing super hard about nfts in our market monday.
David asks the question whats after nfts, and i think that the answers to this question really tie up what the rest of the week was about. Uh first nfts are definitely here to stay, but its far more uncertain. How much longer this mania, this craze is going to last market monday, usually talks about what is immediately next, but i think this also asks a bigger question like what have nfts unlocked for us. What can we build next, and i think the answers to these questions may just be the same thing. So first nfts unlock social media for web 3. in relevant news. Twitter is apparently adding bitcoin payments, while ave is looking to build its own social media ecosystem. If youre paying attention youll notice that the crypto social movement is catalyzing, social media is a huge part of that. I wonder if trying to pick winners for platforms and protocols even makes sense here, though, maybe its bigger than that. Maybe the metaverse offers enough freedom in scope and scale that the whole of web 3 becomes one big platform that combines social media finance value information and its a bit early to predict the exact nature of these things. But i think its time to think big. Its time to dream about the world that we want to build uh and our tactic this week focuses on e s names and how you can use dot com urls as an eth address. The fluidity and composability of this ecosystem is just starting to peek through the clouds, and this will be an early example of self sovereign, interoperable technology that improves the user and community experience of engaging with the internet.
Another thing coming after nfts is perhaps a resurgence and yield farming with the arbitrarium roll roll up scaling solution launching to mainnet this week. We expect to see a massive capital flow into layer, two and probably incentives to do so so maybe layer two summer coming. This fall well see and also layer, two ethereum isnt, the only place well be looking for opportunities. Staff, writer ben covers other layer, one platforms and the guide to multi chain yield farming. We live in a multi chain world and wed be wrong to totally ignore the things happening in that multi chain. World bin covers avalanche solana and tara and some pretty interesting opportunities there. We also did a deep dive into solanas value proposition with santiago and constantine in a panel this week and its interesting. It left me with a lot of question marks, theres. Clearly a lot of momentum. There uh both from the price action side and the ecosystem development side, the values and trade offs are things to learn about and things to think about so yeah watch that panel and keep your mind open and also remember, whats important to you. Nfts also unlock communities. Dj justin blau returned to the state of the nation this week to talk about tokenizing music weve, seen it with visual art, and i think music is just around the corner, especially with things like audience teaming up with tick. Tock blaus new platform royal aims to turn the business of music into a community experience, blurring the lines between the crowd and the stage giving supporters the chance to invest and be rewarded for the success of their favorite artists for a tick tock star who comes out With a song thats viral a lot of the time, the record label will pledge 10k to take 80 of that song and that song will probably generate that 10k back in like four months.
The artist just gets really excited by the money, because theyve never seen it before they dont know that you know the song actually will generate income from streaming and they just sign the dotted line. Thats like a typical situation. Lots of you know successful young people that want to earn income on their capital. Music is an asset class that only private equity and hedge funds and record labels have even had access to right. So a big part of royal is democratizing access to music as an asset class. I think the premise is obvious, but the execution of that is incredibly challenging and i think that that is basically the whole space. In a nutshell, uh social and dow tokens are heating up in a big way and yeah cryptoculture is taking off and soon it will just be culture. Maybe if this episode of tldr feels different than the others, and maybe it does, maybe it doesnt uh its because of davids article. The metaverse emerges its had my brain in a pretzel for days now and trying to wrap my head around the concepts and form my own view of it uh, and the big question obviously, is what is the metaverse on the podcast this week? Raul paul described it as digital fluidity and to me the metaverse is just when society happens, digitally and the current state of the internet is a place where value is represented, but were watching a new internet emerge where value is natively hosted on it, and this transfer Is the fundamental metaversal shift, so the metaverse is a digital first society and a society can be boiled down to two fundamental things: economics and culture, and the core of economics is capital and d.
Phi is handling that and the core of culture is identity or the people, and it seems like nfts, broadly, are handling that. I think the metaverse will have fully matured when those two things meet in the middle and become one flourishing ecosystem, and i think thats why loot has taken off so hard. Its value proposition is the meeting in the middle of culture and value its a simple prompt. They give you some fantasy items on the blockchain and its a call to action to the community to build a world and a culture and value around that its cool and ive never had so much fomo in my life thats. Basically, the final thought: what do you think the metaverse is its really tricky to pin it down into a single sentence, because its complicated its squishy, its multifaceted, and i think the best way to think about that is to look forward, see what the world looks like When the technology of the internet is optimized and we will continue to observe and analyze it and give you our best takes on where we are and where we think its going so with that uh, none of this was financial advice. Ethan is risky. D5 is risky. Everything is risky uh, but we are headed west, its the frontier, its not for everyone and were glad youre with us on the bankless journey, and i want to quickly shout out our sponsors, gemini, ave, balancer and uniswap.
We get to sponsor the building blocks of the metaverse and its an honor to do so. So thanks a lot and see you next time, hey, we hope you enjoyed the video. If you did head over to bankless, hq right now to develop your crypto investing skills and learn how to free yourself from banks and gain your financial independence, we recommend joining our daily newsletter, podcast and community as a bankless premium subscriber to get the most out of Your bankless experience youll get access to our market analysis, our alpha leaks and exclusive content, and even the bankless token for airdrops raffles and unlocks. If youre interested in crypto, the bankless community is where you want to be click. The link in the description to become a bankless premium subscriber today also dont, forget to subscribe to the channel for in depth. Interviews with industry leaders.