Sup, nerds!

Here’s what you’re getting in today’s edition:

• 💅 This is cool: Look who came crawling back...

• 🔎 This seems important: Crypto needs a new narrative

• 🤝 Partner: Explore how emerging technologies help you stay ahead​

• 🔪 Let's dissect this: Vitalik’s new proposal for ‘Multidimensional Gas Pricing’

Terms used in this edition (click for an explanation, or ask Web(GPT)3!):
Web2/3, NFTs, blockchain.

💅 This is cool:

Wells, Wells, Wells. Look Who Came Crawling Back.

In one sentence: Back in 2019 Wells Fargo straight up banned its customers from buying crypto, now they’re buying up Bitcoin ETF shares like no ones business!

If you’ve ever begged your parents for a dog, we’re guessing that your mom was way easier to convince than your dad.

In fact your dad probably dug his heels in — to the point that, even as the dog was being walked through the door, he had his arms crossed in protest

…but then — flash forward six months and those two are inseparable. Dad’s walking, feeding, and generally pampering the dog at every chance he gets. 

We’ve recently seen a similar change of heart between Wells Fargo and Bitcoin.

ICYMI: back in 2019 Wells Fargo straight up banned its customers from buying crypto — there were even whispers of crypto wealthy folks getting de-banked by them.

…but according to recent SEC filings, Wells Fargo has just started buying up Bitcoin ETF shares.

Say it with us now:

“Well, well, well. Look who came craaawling back!”

Now, it’s worth acknowledging that given the recent regulatory crackdown on crypto within the US, this is a small win.

(Almost like asking “Other than that Mrs. Lincoln, how was the play?”) 

But here’s what you need to remember: 

Those creating regulatory friction from within the SEC won’t be in power forever (they tend to cycle out every 4 years or so, depending on  which political party is in power).

While these banks stay relatively static after they’ve made a decision like this.

Point is: these regulatory headwinds should (hopefully) be short lived, while these investments in the crypto sector, from legacy financial big-dogs like Wells Fargo, are likely long term.

We love to see it!

🥇 Want the news before anyone else?

🔎 This seems important:

Crypto Markets Are in Desperate Need of New Narratives To Push Prices Higher (Kinda)

In one sentence: Crypto markets are in need of new narratives to feed price action, but really — narrative or not — if Bitcoin starts moving, the rest of the market will likely move with it.

Another childhood analogy? Sure why not.

Remember those deals your parents used to cut with you? “If you maintain a B average, we’ll take you to a waterpark this summer.” 

The moment that narrative was set — you were studying harder, paying greater attention in class, and even going as far as asking for water park-related gifts for your birthday (swim trunks, rash vests, goggles, etc.).

The crypto market follows a similar path — it finds narratives, and works towards them.

Whether or not these narratives are ever actually realized is a whole other question…

The point is: once set, the market starts builds towards the conclusion of these narratives — and in the case of crypto markets: “building” = “investing”

For example:

• The Bitcoin ‘Runes’ narrative saw a pump in activity on the chain.

• Solana saw a pump thanks to the “holy sh*t we didn’t die after the FTX collapse!? This is awesome!” narrative.

• And Ethereum had its own ETF narrative (ever so briefly).

But now everything has quietened down, the market is in desperate need of a new narrative to invest towards. 

…kinda.

See, the thing with crypto markets is: if Bitcoin pumps, the rest of the market tends to pump. And when that happens, certain narratives can add extra momentum to particular projects.

But when it all comes down to it — clear narrative or not — if Bitcoin is moving, the rest of the market will likely move with it.

So yeah, right now, crypto is a total snooze fest.

The good news is: we’re still in an up trend!

Which means after Bitcoin finishes taking its well earned breather (after seven months of ‘up only’ between Sep ‘23 and Mar ‘24) there’s a good chance we’ll continue moving upwards. 

And when that happens, narratives like:

• Gaming

• AI x crypto

• Web3 social

• Tokenization on Bitcoin

• Decentralized physical infrastructure (DePIN)

They’ll all start to feed the flames of positive price momentum again!

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🔪 Let's dissect this:

Vitalik’s New Proposal for ‘Multidimensional Gas Pricing’

In one sentence: Vitalik just proposed a change to the gas pricing model for Ethereum to make it fairer for those all Ethereum transactions.

Last week, Vitalik Buterin (i.e. ‘ETHdaddy’) wrote an article entitled: Multidimensional gas pricing 

(And no, it’s not about how cheap California’s gas prices are in different dimensions…)

It’s a proposal for a new way to structure Ethereum’s gas fees (aka transaction fees).

The basic premise is this:

Multidimensional gas on Ethereum would distinguish between different categories of effort required to complete different types of transactions.

For example, different gas fees might be charged for transactions related to Ethereum NFTs, compared to crypto transactions for ETH. 

Some people on Twitter have said that this sounds eerily similar to Solana’s ‘local fee markets’ solution where gas fees are calculated on a per-account basis, project by project - meaning that if there’s huge demand for a certain NFT, gas fees would only spike for those who are looking to purchase that NFT, not all transactions on the blockchain.

But here’s our take in a nutshell:

Learning from other blockchain projects, taking the good parts and leaving the bad is a winning formula.

(Web2 companies literally do it all the time!)

As long as innovation continues, we’ll take it.

Happy Monday!

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What is Ethereum Gas?