Sup, nerds!

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

• 💅 This is cool: Did we all just break crypto?

• 🔎 This seems important: The calm before the storm...

• 🤝 Partner: How to lose a lot of money (fast) and not care​

• 🔪 Let's dissect this: We got Ethereum re-staking all wrong!

Terms used in this edition (click for an explanation, or ask Web(GPT)3!):
Bull Runs, Meme Coins, Bear Market, Staking, Wallet.

💅 This is cool:

Did We All Just Break Crypto? (This Isn’t Normal).

In one sentence: Something is off — the appreciation we’ve seen in crypto prices over the past 6 months weren’t due to happen until mid April (either way, more increases are forecast).

Damn! We’ve gone from BEAM to BAME.

(Which is kind of like having breakfast for dinner, or dessert before your veggies…a fun way to mix things up, for sure! But not normal).

What does ‘going from BEAM to BAME’ mean?

In past bull runs, the flow of investment has traced a similar path each time:

Everyone makes money in Bitcoin → they roll those profits into Ethereum → once ETH has had its run, folks move into Altcoins → finishing w Meme coins.

This time around, the market has been playing musical chairs…

Moving like so:

Bitcoin (starting early Oct. ‘23) → Altcoins (started by Solana, mid Oct. ‘23) → Meme coins (over the past month or so) → Ethereum (tbd).

Here’s why this is cool:

That whole cycle usually only starts after the Bitcoin halving (then lasts for 12-18 months). But right now, the halving is still ~2 weeks away.

So the face melting gains that Bitcoin, Altcoins, and Meme Coins have all made so far?

…it may just be the beginning if a much larger 12-18 month move (with Ethereum still to come!).

Here’s why this is not so cool:

Remember a few weeks back when we covered the potentiality of a left translated cycle?

ICYMI: that’d basically mean instead of seeing 12-18 months of gains after the halving, we’d see prices peak much faster/earlier (say, in the next 6 months or so?) — before falling into a prolonged 2 year bear market.

Yeah, well…the crazy run up we’ve experienced from last October, till now? It plays right into the ‘left translated cycle’ theory.

Good news is:

Whichever scenario plays out, silly amounts of upward price action are forecast in both.

🥇 Want the news before anyone else?

🔎 This seems important:

This Is the Calm Before the Storm (Enjoy It While You Can)

In one sentence: The crypto market’s price/news cycle is boring as hell right now — but post BTC halving, things won’t be so zen (enjoy it while you can!).

You feel that?

The gentle breeze on your face? The smell of rain in the distance? The overall sense of zen?

That’s how you know we’re in the calm before the storm!

And with that, we thought we’d write a short n’ sweet article to remind you to enjoy this moment of tranquility while you still can!

Cause yeah, most major cryptocurrencies are trading sideways, and big news stories are few and far between right now…

But that’s all about to change.

In ~16 days, the Bitcoin halving will take place, and the total amount of Bitcoin being produced each day will be cut in half, making it scarcer than it has ever been before.

Pair that with the ever-consistent large-scale buy/sell-pressure coming from the Bitcoin ETFs, and we’re set up for the perfect storm of volatility (across the crypto market).

Make sure your neck is well supported.

(We’re all at risk of whiplash).

🤝 Partner:

How to Lose a Lot of Money (Fast) and Not Care

There are plenty of ways to quickly lose a lot of money. Like YOLO-ing on some zero-days-to-expiration options, or piling in on a new sh*tcoin. But there’s only one way to take it in stride: don’t give a damn about your financial future. 

If you don’t fall into that category, and instead want to build a stronger financial future for a portion of your overall portfolio, then you should know about Masterworks. This art investment platform enables everyday people to invest in shares of contemporary art. Although securitized art is materially different from whole artwork, this asset class’s price appreciation has outpaced the S&P 500 by 64% over the last 28 years. 

Across their 21 exits, investors have realized median annualized net returns of 14.6%, 16.4%, and 17.6%.*

It's easy to get started. Just use this VIP link for Web3 Daily readers, and Masterworks will take care of the rest.

_{*Past performance is not indicative of future returns. Investing involves risk. See Important disclosures at www.masterworks.com/cd}

🔪 Let's dissect this:

(Get Us Some Humble Pie) We Got Ethereum Re-Staking All Wrong!

In one sentence: Ethereum re-staking platforms have accrued more than $8B in locked value (and the risk we perceived when first learning about it all was misunderstood).

A few weeks ago we did a piece on liquid re-staking on Ethereum.

The basic premise goes like this: 

• You can risk a portion of your ETH holdings (via staking) to earn ~5% interest per year.

• Some providers give you ‘staked ETH’ tokens (aka stETH) when you stake with them — this way, you still have liquid (spendable) crypto in your wallet.

• Re-staking allows you to take that stETH and stake it (risk it) again, in order to earn even higher returns.

Which sounded like a wild concept when we first heard it (you want users to double down on risk?).

So wild, that we finished that original article by saying this:

Well, we did more research — and…

Turns out we hit the panic button prematurely!

Cause if you lose your stETH, you can’t redeem your original ETH, which means you aren’t actually risking twice what you own…

Confused? Same. Think of it like this:

If you lock up your bike (ETH) and lose the key (stETH) — it’s not like you’ve lost two bikes all of a sudden — it’s still just the one (difference is, you can’t access it any more).

And so far, Ethereum re-staking platforms have absolutely boomed, accruing more than $8B in locked value!

Get us some humble pie — we stand corrected, and ready to eat!

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Restaking Explained!