Bitcoin hit all-time highs while Ethereum just surpassed it in 24-hour futures volume. Bank-issued stablecoins on Ethereum now make up 55% of stablecoin issuance and are processing more volume than Visa, Mastercard, and Amex combined.
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Bitcoin just hit all-time highs, but we're seeing an interesting story right now around Ethereum. According to Glassnode, Ethereum just flipped Bitcoin in 24 hours futures volumes at $62 billion versus $61 billion. Furthermore, we saw ETF inflows at $211 million versus $215 million. This is huge because the market cap is just $339 billion versus $2.2 trillion for Bitcoin. What's going on? So next week is Crypto Week at the White House. They have a lot of cool stuff queued up. A big topic is in the Genius Act with stablecoins, where a number of large banks, after the Genius Act just got passed a few weeks ago, are building stablecoins to transact dollars around the globe. This transaction volume last year surpassed Visa and MasterCard and Amex in transaction volume. With this, it's going to go through the roof. Now, why is that important? Well, currently about 55% of all stablecoins is built on Ethereum. You can see the breakdown here. So there's Solana, Binance, and Base. and how much— how many dollars they have on those chains. If these banks are building on Ethereum, their stablecoins, they hold Ethereum as treasury for those stablecoins. We put a very detailed description here for the rise of stablecoins and case for utility coins in our Ugly Unicorn Investor Report. This may be why we're seeing such a pop in Ethereum next to other coins like Bitcoin. Why is this important? Well, this is a huge piece in the psychology around crypto, at least the last 2 cycles, the 2021 and 2017 cycles. Bitcoin runs first. We've been in the Bitcoin season for a while. Phase 2 is money rotates out of Bitcoin into Ethereum. Like I just shared a second ago, we're seeing a lot of rotation into Ethereum. Phase 3 is where money then rotates into large caps and then into what the people call alt season, where other coins go crazy and it goes berserk like it did in 2021 and 2017. We are right now seeing this transition happen with Ethereum. We'll see if it sticks. Through the next few weeks, and that would open up the doors for a full-out alt season where you see those crazy returns like you saw in 2021 and 2017. Now, if you want to read this report, it's at uglyunicorn.com. It's our new Q2 report posted yesterday. Furthermore, our fund is only for accredited investors or qualified purchasers. We can talk though if you want to talk more, but you can go read this for free on our website right now.
