The markets fell, Bitcoin dropped with its pants down right back to the lower 30ks yesterday…. People wyckoffing, don’t know if it’s accumulation, distribution, or line drawing superstitions… One thing Chico Crypto know’s is Ratio Gang…it’s growing for that Ethereum. And that ratio growth is gonna continue…no matter what the markets do. Why? Find out in 10 minutes, give or take a few….because it’s time for Chico Crypto!! Yes, over the past 5 days, Ethereum has gained pretty much 1 percent in market cap dominance pushing it past 18.61 percent.
1 percent of total global market cap in just 5 days is pretty dang significant, especially with the markets being dumped on Monday…so what is the reason for this? Well there are more than a few… Numero UNO is Ethereum showing resilience where Bitcoin didn’t. With mining and hashrate reduction due to the “China Mining Ban”. Remember Ethereum’s hashrate collapsed about 20 percent from its May highs, while Bitcoin dropped by over 50 percent. Now there are 2 scenarios for why this happened and whichever one is correct, is freaking bullish for Ethereum versus Bitcoin. #1 Ethereum mining is more globally distributed, thus China bailing out of mining didn’t affect Ethereum as much. Or #2 Ethereum mining is not getting hit like Bitcoin in China. Which I showed is kind of the case. SOS limited announced they were partnering with a US company, moving their bitcoin operations. But in the press release it said “The majority of SOS’ China operations, namely, its insurance businesses, call centers and ethereum mining businesses, remain unaffected and fully operational” So no matter what the case is, whatever is going on in China with Ether mining right now, things are looking better for Ethereum… But, things are also looking much better for Ethereum, in terms of protocol upgrades.
Ethereum London, is scheduled to go down on the last testnet, to plan, tomorrow on July 7th. This all going to plan means late July or early august launch of EIP 1559. What everyone has been waiting for as part of the transaction fees going through the protocol, get BURNED! That is getting the markets excited….but it isn’t only core protocol upgrades coming….it’s upgrades to scalability & also to how Ether is staked! I’m talking about rollups & rocketpool. First let’s talk about rollups. There are many rollup solutions coming & coming sooner than you think… The furthest along? That has to be the Arbitrum’s rollup solution. This has been in a developer public mainnet since March 28th. For well over a month, developers have gotten to play around with it….and there are some interesting “developer moves” happening recently that relate to Arbitrum.
First…Perp Protocol announced a home for version #2 of their protocol, Curie, and it was on top of Arbitrum! A LinkHound on Twitter tweeted “So, we have a known Chainlink Dev wallet sending $ETH to the Arbitrum Inbox & interacting with the Arbitrum Bridge. Hmmmm! I wonder what this could possibly mean.” Well this recent flood of developer activity could mean many things, but to me means mainnet soon! Going back to Arbitrum’s beta mainnet blog post they said this: “Operationally, with over 250 teams requesting to come online for the developer mainnet, it’s going to take us into next week before we can onboard everyone, but this process is underway.
To make sure that nobody is disadvantaged by this, we will guarantee that all projects that have already applied and are granted access will have at least two weeks to build and test before we open Arbitrum One to everyone. ” Arbitrum’s rollup is just one of the rollup solutions getting ready to DROP. What about Optimistic Ethereum’s rollup? Which has some of the BIG players pledging to use, like Uniswap and Synthetix. Well in the middle of June on the 17th it was announced by Consensys Infura, Truffle, and Metamask would be rolled out to the rollup, so they worked right out the gate and they hinted about it being ready for prime time. Well just one week later we got announcements of both Truffle and the Infura API supporting optimism. It’s been a couple weeks, and we are just waiting on Metamask…and the Consensys developer suite of tools are ready which positions it for a wider mainnet release….maybe Uniswap deployment? Hayden did say over 2 weeks ago that Uniswap on Optimisim was coming soon… Coming soon is cool,, but how about a rollup release put out into the public domain!? And on the enterprise side of things!! Well Ernst & Young announced their own layer 2 for public release & even Paul Brody of Ernst and Young popped into the ETH Finance subreddit, to release and answer questions & he even included the Github but down in the comments, someone asked Paul about enterprise adoption….
Brody replied “We will deploy on our service. We’re talking with another firm about standing up a very large set of validators” Large set of validators with another FIRM? I wonder who that could be? Well if you didn’t know Enrst & Young is Microsoft’s ally in the blockchain space. But there could be a BIG surprise one, that many don’t see coming. A ZKrollup solution specifically from ZKSync. Within their developer documentation, they have a roadmap for smart contracts. It says zkSync smart contracts are going mainnet in 2021 with both Zinc and Solidity will support at launch! Hmm mainnet sometime this year? Well, I would get using their suite of tools as much as possible….why? Also within their developer documentation is this. A section on Tokenomics. They say “We plan to launch our token in the future. Our business model will be expressed through it.” They say yes, they will have a native token and they intend to distribute the majority of the network government rights to the community and then go into the use cases for it below.
But they did say distribute it to the community. Kind of like an airdrop distribution? So roll ups are coming, from many angles, and many teams…but there is just one team, working on what I consider to be even more of an important piece to the ethereum puzzle than rollups. That is Rocketpool & they are working on decentralizing Ethereum staking… There is a big worry, if a solution is not released, the centralization of staking could get worse than mining.
Large custodians, financial entities & exchanges will control all the ether, thus controlling the validator and nodes and blockchain. Rocketpool is the only hope, which is truly decentralized. So when is Rocketpool launching on the mainnet?
Well going to their website and to the roadmap, it’s been a long journey for the poolsters, but this roadmap is finally coming to completion, as we are in the last stage…Mainnet release! They say “After successful deployment and testing of our release candidate testnet on Prater, Rocket Pool will be released to mainnet. So where are they with all of that? Well a hint my friends. Discord, find a projects Discord, not Telegram, because that is where the developer and good conversations happen! Well here within the last 3 days, a decentralized asked a pretty technical question, a deetoo. ETH answered it, and then decentralized asked when mainnet. Deetoo, who looks like they know what they are talking about regarding RPL, said “we do not know a specific date yet. the final Release Candidate testing on Prater testnet should start within the next couple of weeks. if all goes well there, my guess is a late august mainnet launch.” So, my friends, this all could be happening in the next couple of months.
London upgrade, which means Burn Ether Burn, with EIP 1559. Arbitrum mainnnet opens to the public, Optimistic Rollup opens to the public, ZKsync mainnet…and even Rocketpool goes live. That’s the 1-2-3-4-5 punch. No wonder Ethereum is gaining ratio, and ready to turn extremely bullish. If bitcoin gives any sign of bull green, Ether is usually off to the races, gaining much more…But like they always say…”Buy those rumors, sell the news” Cheers I’ll see you next time!