Dispatch #192: Bitcoin’s Serious Phase

May 17•4 min read

In this patch of your weekly Dispatch:

  • Ethereum’s Evolution ⛓️
  • A Million New Coins 🪙
  • Is Roaring Kitty Back? 🐱

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The Big Idea

The Most Inclusive Bitcoin Has Ever Been?

It was quiet at the Dispatch news desk last week, when the issue was hijacked by The NEXO Hunt, our biggest community-focused initiative. But not so much these past days, full of memecoin mania, next-gen blockchain technology, inflation reports (can’t miss those), and the almighty Bitcoin, going back to green (chart) pastures at over $66,000. 

One reason for the rise was inflation in the U.S. slowing down, but could it be that Bitcoin is starting to enjoy a new wave of inclusivity? You be the judge here:

  • Wisconsin is the first U.S. state to disclose a major Bitcoin investment, purchasing nearly $100M in BlackRock's iShares Bitcoin Trust and $64M in Grayscale's Bitcoin Trust. The state's investment board manages over $156B in assets.

  • Hedge fund Millennium Management poured nearly $2B into Bitcoin ETFs in the first quarter, comprising 3% of its $64B in assets. Key holdings include $844M in BlackRock's iShares Bitcoin Trust and over $800M in Fidelity's Wise Origin Bitcoin ETF.

  • Morgan Stanley disclosed a $269.9M investment in Bitcoin through Grayscale's GBTC in its first-quarter 13F filing, making it one of the largest GBTC holders.

Wanna hear something funny? Banking giant Wells Fargo has revealed modest investments too: $141,817 in Grayscale's GBTC and under $1,200 in ProShares Bitcoin ETF – surely test transactions or a proof-of-concept? 

A close to 10% increase for Bitcoin on the week is probably all that matters, but what lies ahead? Avid investor Mike Novogratz says it’s range-bound for 2024 and you know what – it could be excellent for Bitcoin.

The Latest In…

Next in the Ethereum Roadmap?

Some have blamed Ether for not keeping up with Bitcoin, but that’s only half the story with more than a few developments this week:

  • Ethereum's average transaction fee hit a record low of 4.81 Gwei, attributed to increased activity on Layer-2 networks post-Dencun upgrade, making base layer transactions less attractive.
  • Following the upgrade, Ethereum shifted to an inflationary state, reducing gas fees and burn rates, challenging its previous deflationary narrative and necessitating increased network activity to maintain deflation.
  • Ethereum co-founder Vitalik Buterin proposed EIP-7706, which suggests a new way to categorize gas fees for transaction data. This aims to make gas fees more efficient by assigning specific costs to data transmission, separate from execution or storage. This could lower fees for transactions that involve a lot of data.

The Latest In…

Can You Feel the Squeeze? 

Meme coins experienced a significant uptick supposedly thanks to the return of Keith Gill, aka Roaring Kitty, renowned for his role in the GameStop short squeeze. His social media posts triggered a rally, with GameStop shares soaring over 100%. This resurgence also lifted popular meme coins like Dogecoin and Shiba Inu. Solana's “GameStop” token saw a staggering 1,900% surge. Analysts predict a cat-themed “MEME season” following Gill's videos mentioning the end of dog days, signaling increased investor interest in meme coins. 🍿

The Latest In…

The Ever-Expanding Crypto Universe

Since the start of April, the crypto space has witnessed a surge in token creation, with Ethereum alone spawning 372,642 new tokens, while Solana saw over 640,000, notably dominated by meme coins. This surge in activity on Solana led to a 630% increase in its total value locked (TVL) since the beginning of 2024, primarily driven by the meme coin frenzy. However, this rapid proliferation of tokens has raised concerns within the crypto community regarding the devaluation of more legitimate projects. Despite the controversies surrounding them, meme coins remained one of the most profitable narratives in the first quarter of the year, Cointelegraph reports.

The Week’s Most Interesting Data Story

Deep in Miner’s’ Pockets

The Bitcoin halving event holds immense significance for miners, especially during times of high prices like we're seeing now. With reduced block rewards, miners may face increased pressure to liquidate their Bitcoin holdings to cover operational costs. Could it be that they have stopped selling? There’s a discussion in more detail about BTC and miners.

Hot Topics

What the Community Is Discussing

How’s that for efficiency in Bitcoin production!? Ha!

The big players in a nutshell.

So they all know inflation now, do they?

What to Watch for Next Week:

  • Is Allen Farrington on Nexo’s Social Block pod?

  • Can Bitcoin make it as a Layer 2?

  • AI and Crypto meet (again)?