GM friends.
This week, in a conference room somewhere in the world, a blockchain developer said, “f#%k it, we’re moving to Ethereum!”
Get a fresh pot of coffee started because this is your mid-week crypto update. ☕️📰
Here’s what’s in today’s issue:
- David & Sam share their thoughts on Canto (L1) becoming an Ethereal L2, Japan’s largest investment bank launching a Bitcoin fund, Balancer is under a DNS attack, a US + UK legislation update, IOTA’s upgrade increasing supply by 60%, the return of the ICO, BitGo and Swan joining forces & an update on the SEC vs Binance US battle.
- This Week On Chain.
- Rekt Capital has the latest technical analysis for you on the market.
- This week’s trending coins by Rebecca
- Erik has a report for you on MetaMask Snaps.
- Defi Dad has a tutorial for you on the ultimate ETH earning strategy in DeFi.
- Jesse has a ton of hot new airdrops for you.
For any crypto related questions please comment on the website.
Thanks to Phemex for sponsoring today’s newsletter.
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L1 Canto to Become an Ethereum L2
It’s happened again folks.
News dropped Monday that the L1 blockchain Canto will be transitioning to become an Ethereum L2.
Canto and Polygon issued a joint announcement, as the former will be using the latter’s chain development kit to make the transaction.
As an Ethereum L2, Canto developers say the blockchain will focus on bringing real world assets on-chain, which Canto is calling “neofinance”. Canto started as a DeFi-focused L1 with a launch in the Cosmos ecosystem in mid-2022.
Canto’s announcement comes on the heels of a similar one made by Celo, where community members overwhelmingly voted over the summer to transition the L1 into an Ethereum L2.
What this Means for Ethereum
The significance of these transitions isn’t so much about how these blockchains benefit Ethereum (Canto and Celo are small with total market caps at $54M and $235M, respectively), but rather what they say about how Ethereum is doing in the L1 competition to become the internet’s “commerce” blockchain.
When competitors are saying to Etheruem, “I can’t beat you, so I’ll join you”, that means Ethereum is dominating.
In fact, when taking a step back and looking at the entire crypto ecosystem, the data shows that Ethereum is crypto’s blackhole, because every time a project tips over its event horizon, Ethereum’s network effect becomes even stronger.
So what about the data?
For starters, Ethereum commands 20% dominance over the entire crypto market. An impressive statistic considering the amount of competitors out for blood. And that’s not accounting for any of Ethereum’s L2 market caps.
When we look at the total value locked (TVL) on all Ethereum L2 (except for Polygon), we see this number basically ranging near its all time high (ATH).
And speaking of ATHs, so are the transactions per second (TPS) for all Ethereum’s L2s (again not including Polygon), which is currently at 67, with an Ethereum scaling factor of…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
