Morning Minute | The Future of Crypto Is Bright
TylerD's Market Summary
โ Takeaways From the Coinbase State of Crypto Summit
The "Coinbase State of Crypto Summit" took place late last week.
And the primary takeaway is - no one is bullish enough.
The founder of Blockworks Jason Yanowitz shared his key takeaways from the summit after attending and they were quite insightful.
In brief summary:
The Opportunity:
- $70T is transferring generations and the young generation is fed up with the traditional finance system
- New groups will grow up without bank accounts; their phone will be their wallet
- New realization that crypto is an increasingly important part of the global economy
Institutions & ETFs:
- 80% of BTC ETF buying is coming from retail (self-directed investors)
- We haven’t even seen real demand yet because the Morgan Stanley, UBS, etc. bankers haven’t started pushing
- Institutions were over allocated to VC, are now moving to liquid token positions
- Tokenization of every asset is coming and will happen on Ethereum; permissioned blockchains have lost (no one wants to fragment liquidity)
- 56% of Fortune 500s working on something onchain
The Regulatory Problem
- Regulatory clarity is still very important with big clients on the sidelines waiting
- Mark Cuban is telling politicians that the biggest problem for American crypto companies is the SEC registration process
- Regulatory clarity will push institutions from 1-2% to 5-10%
Coinbase Focus
- Brian Armstrong says Base is the most exciting thing happening at Coinbase; next is their Smart Wallet
- CEXs had a point in time but the future is peer-to-peer onchain, and Coinbase is moving products onchain
- Last big piece of puzzle for them is international expansion - just 17% of revenue today; have picked 10 markets to go deep
Crypto Investment Insight
- If you aren’t buying crypto - you are short crypto
- Funds used to advise 1% for crypto, now 3-5%
- Crypto still has a major branding problem (no one knows what an RWA is or cares); not controversial to invest in emerging tech, but it is for crypto
- The trade has 10x upside trade with 25-50% downside; very rare opportunity
Overall these are some very powerful words.
From some of the biggest players in the industry (and world).
Why It Matters
The big takeaways for me:
- ETH is really positioned well to win tokenization, the next major narrative for crypto
- The ETF demand hasn't even really started yet, this is just the appetizer
- The regulatory issues in the U.S. are still not solved or even that close
- The great wealth shift from Baby Boomers to the next generation will see a large relative chunk allocated to crypto
The timeline may be dark at times but make sure to take in what these leaders are saying -
The future of crypto is as bright as ever.
๐ What else is happening in NFTs?
Here is the list of other notable headlines from the day in NFTs:
- ETH led NFT trading volume with $3.9M on the day; Polygon was next with $2.9M and then BTC & SOL tied with $2.45M
- ETH NFT leaders were mostly red down 2-3%; BAYC -3% to 10.2 ETH, Pudgy -3% to 10.2, Milady even at 4.8 and Azuki 1% at 3.69 ETH
- San FranTokyo, Sproto Gremlins and Checks were notable outperformers on the day
- BTC NFT leaders mostly chopped on the day; NodeMonkes +2% at 0.208 BTC, Puppets even at 0.133 BTC, OMB even at 0.245 and Quantum Cats -6% at 0.26
- The Runes board was mixed with DOG ($675M mc) and BAMK ($3352M fdv) both seeing slight red but BILLION DOLLAR CAT jumping 40% to $52M; RSIC even at $165M
- Solana NFTs were mixed; Mad Lads -1% at 66 SOL, SMB Gen 2 +7% at 25, DeGods -1% to 22
- Tensor rolled out a new feature showing top 100 holder for its NFTs
- RTFKT began shipping its Nike Dunk OG and VOID
๐ฐ Token, Airdrop & Protocol Tracker
Here's a rundown of major token or airdrop news from the day:
- The ZK token airdrop went live, opening at $5.25B FDV equating to a $920M stimulus for recipients
- Layer Zero announced its Layer Zero Foundation along with a June 20 TGE teaser
- Photon threw a curveball with its Season 1 Stimmies, delivering $500k to its top 300 traders and 1,700 bonus winners (instead of wider airdrop), though the team did confirm a token is coming in the future
- Fantasy Top delivered all outstanding rewards of its next round of tourneys with 1M Blast Gold up for grabs, while promising more insight into its scoring algorithm
- nftperp recovered all 200+ ETH lost in its protocol compromise in the latest Blast full recovery
๐ Around Crypto and Web3
A few other Crypto and Web3 headlines that caught my eye:
- Crypto majors are red this morning; BTC -1% at $65,800; ETH -1% at $3,530, SOL -0.5% at $144
- Memecoin majors are also red with DOGE -1%, PEPE -2%, WIF -5%, BONK -8%
- Fidelity posted a 60-second primer on Runes created by one of its research analysts on Friday explaining the protocol
- Donald Trump vowed to end "Joe Biden's war on crypto" in a rally in West Palm Beach on Friday night
๐ Memecoin Movers
- $BILLY (+20,000%, $11M market cap, SOL)
- $WakaFlocka (+1500%, $11M market cap, SOL)
- $HOPPY (+43%, $31M market cap, ETH)
- $WOLF (+33%, $34M market cap, SOL)
- $DADDY (+20%, $130M market cap, SOL)
๐ NFT Floor Price Increase (ETH)
- GLHFers (71%, 0.06 ETH Floor)
- Piggy Club (46%, 0.1 ETH)
- Sakura Park (33%, 0.2 ETH)
- San FranTokyo (28%, 0.29 ETH)
- Sproto Gremlins (27%, 0.99 ETH)
๐ Upcoming NFT Mints and Reveals
Today is off to a fast start.
The ZK Sync airdrop went live this morning opening at a $5.25B FDV.
Then the Photon stimmies come out later today to the top 300 traders, and Fantasy Top's next round of tournaments begin at 5 pm ET.
See the full list and dive in for more details with Swizzy's daily mint monitor.
- ZK airdrop (3:00 a.m. ET)
- Photon - Season 1 stimulus (TBD)
- jcode - Between Bytes and Being (9:00 a.m. ET)
- kylepatrick x Prohibition - Onchain Summer (12:00 p.m. ET)
- Grailers DAO x Singular - All at Once (12:00 p.m. ET)
- Fantasy Top - main tourneys (5:00 p.m. ET)
Enjoy this write-up and/or want to sponsor the Morning Minute? Follow along with me on Twitter @tyler_did_it or reach out via email to tyler.warner@luckytrader.com.