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Ethereum transitions to Proof-of-Stake

WHAT’S MOVING CRYPTO
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Aakash Athawasya
Tryna write some stuff @doodhwaladaily (will buy you milk if you ask nicely)
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Ethereum transitions to Proof-of-Stake

WHAT'S MOVING CRYPTO

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The Merge is complete (more on that below) and despite Ethereum prices dropping the second-biggest crypto has been slowly stealing market share from big brother Bitcoin.

Back in June, Bitcoin’s dominance of the crypto market was at 47.5% while Ethereum’s share was 16%.

Fast-forward to today and that margin has narrowed with Ethereum controlling 20.5% of the market compared to Bitcoin’s 39.1%.

We’re not saying the Flippening is underway, but if it was it would look a lot like this.

Having said that…let’s get to it!

  1. Ethereum transitions to Proof-of-Stake

  2. Coffee & NFTs

  3. Wave of institutional adoption

1. Ethereum transitions to Proof-of-Stake

Around 3 am EST this morning, Ethereum developers confirmed that new blocks (now called slots on PoS) were being produced and finalized.

Translation: Merge successful.

The Merge is the culmination of 7years of work and its completion will drop the new supply issuance of Ether by 90% (or the equivalent of three Bitcoin halvings).

Though gas fees and transaction costs remain unchanged for now, the Ethereum network will be consuming 1/1000th of the energy it previously required (that’s an energy reduction of 99.95%!).

Another big change that comes with the transition is how ETH is created.

Where before it was mined, new ETH will now be generated by validators who pledge large amounts of pre-existing ETH.

Bitcoin may be the face of crypto, but Ethereum is the backbone of DeFi, NFTs, DAOs, Layer 2’s, and so on with 3,500 active dapps (decentralized apps).

This is a big deal.

2. Coffee & NFTs

Coffee : r/NFT

We just called Ethereum the backbone of, well, everything.

The Polygon blockchain—a scaling solution that avoids high costs and low transaction speeds caused by congestion—sits atop the Ethereum network.

The Polygon blockchain is also where, over the past 6 months, Starbucks () has built new technology to enhance its already massively successful Starbucks Rewards program.

“Starbucks Odyssey” will allow customers to purchase digital collectible NFTs that offer points, rewards, benefits, and immersive experiences.

To make the new loyalty program as accessible as possible, the coffee-serving giant is going out of its way to remove traces of crypto and web3 lingo, opting to use the term “journey stamps” rather than NFTs (what they really are).

Regardless of what they call it, Starbucks’ adoption of NFTs further validates the digital asset’s real-world applications and is reflective of continued institutional willingness to adopt the blockchain throughout the Crypto Winter.

3. Wave of institutional adoption

Speaking of institutional adoption, this week saw several legacy Wall Street firms making moves in the space.

The Chicago Mercantile Exchange (CME)—which already offers Ether futures—launched Ether options this week in response to surging interest for derivatives on the second largest crypto.

Private equity giant KKR is leveraging the public blockchain to make one of its funds available for investment. The company will tokenize an iteration of its Health Care Strategic Fund which will be tradeable on the Avalanche blockchain.

Fidelity—home to over 34 million brokerage accounts—is considering making Bitcoin trading available on its brokerage platform. The firm already allowed corporate clients to add Bitcoin to 401(k) plans earlier this year.

And finally, the same Fidelity, Charles Schwab, Citadel Securities, and other Wall Street firms are teaming up to launch a crypto exchange: EDX Markets.

The exchange will aim to serve both institutional and individual investors.

The wave is coming—which side you’re on it up to you.

SOURCES*

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Gritcapital.substack.com (“Grit”) is a website owned and operated by Substack. Grit is paid fees by the companies that make investment offerings on this website. Be aware that payment of these fees may put Grit in a conflict of interest with the investor. By accessing this website or any page thereof, you agree to be bound by the Terms of Use and Privacy Policy, in effect at the time you access this website or any page thereof. The Terms of Use and Privacy Policy may be amended from time to time. Nothing on this website shall constitute an offer to sell, or a solicitation of an offer to buy or subscribe for, any securities to any person in any jurisdiction where such an offer or solicitation is against the law or to anyone to whom it is unlawful to make such offer or solicitation. Grit is not an underwriter, broker-dealer, Title III crowdfunding portal or a valuation service and does not engage in any activities requiring any such registration. Grit does not provide advice on investments or structure transactions. Offerings made under Regulation A under the U.S. Securities Act of 1933, as amended (the "Securities Act") are available to U.S. investors who are “accredited investors” as defined by Rule 501 of Regulation D under the Securities Act well as non-accredited investors, who are subject to certain investment limitations as set forth in Regulation A under the Securities Act. In order to invest in Regulation A offerings, investors may be asked to fill out a certification and provide necessary documentation as proof of your income and/or net worth to verify that you are qualified to invest in offerings posted on this website. All securities listed on this site are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. Grit does not verify the adequacy, accuracy or completeness of any information. Neither Grit nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy, valuations of securities or completeness of any information on this site or the use of information on this site. Neither Grit nor any of its directors, officers, employees, representatives, affiliates or agents shall have any liability whatsoever arising from any error or incompleteness of fact, or lack of care in the preparation of, any of the materials posted on this website. Investing in securities, especially those issued by start-up companies, involves substantial risk. investors should be able to bear the loss of their entire investment and should make their own determination of whether or not to make any investment based on their own independent evaluation and analysis.

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Disclaimer:The publisher does not guarantee the accuracy or completeness of the information provided in this page.  All statements and expressions herein are the sole opinion of the author or paid advertiser.

Grit Capital Corporation is a publisher of financial information, not an investment advisor.  We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient.  

THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME.  THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION.  INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN.

No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.  

Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable.  They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur.  Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein.  The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.

The publisher, its affiliates, and clients of the a publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities).  To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.

Neither the publisher nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.

By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.

For Full Terms of Use Click HERE. For the Privacy Policy Click HERE.

Gritcapital.substack.com (“Grit”) is a website owned and operated by Substack. Grit is paid fees by the companies that make investment offerings on this website. Be aware that payment of these fees may put Grit in a conflict of interest with the investor. By accessing this website or any page thereof, you agree to be bound by the Terms of Use and Privacy Policy, in effect at the time you access this website or any page thereof. The Terms of Use and Privacy Policy may be amended from time to time. Nothing on this website shall constitute an offer to sell, or a solicitation of an offer to buy or subscribe for, any securities to any person in any jurisdiction where such an offer or solicitation is against the law or to anyone to whom it is unlawful to make such offer or solicitation. Grit is not an underwriter, broker-dealer, Title III crowdfunding portal or a valuation service and does not engage in any activities requiring any such registration. Grit does not provide advice on investments or structure transactions. Offerings made under Regulation A under the U.S. Securities Act of 1933, as amended (the “Securities Act”) are available to U.S. investors who are “accredited investors” as defined by Rule 501 of Regulation D under the Securities Act well as non-accredited investors, who are subject to certain investment limitations as set forth in Regulation A under the Securities Act. In order to invest in Regulation A offerings, investors may be asked to fill out a certification and provide necessary documentation as proof of your income and/or net worth to verify that you are qualified to invest in offerings posted on this website. All securities listed on this site are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. Grit does not verify the adequacy, accuracy or completeness of any information. Neither Grit nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy, valuations of securities or completeness of any information on this site or the use of information on this site. Neither Grit nor any of its directors, officers, employees, representatives, affiliates or agents shall have any liability whatsoever arising from any error or incompleteness of fact, or lack of care in the preparation of, any of the materials posted on this website. Investing in securities, especially those issued by start-up companies, involves substantial risk. investors should be able to bear the loss of their entire investment and should make their own determination of whether or not to make any investment based on their own independent evaluation and analysis.