Ethereum 2.0 vs. the top Ethereum killers

Sa. Foreign. Hello, friends, and welcome to another episode of the Market Report. I'm your host Benson and we are joined again by our resin experts, Jordan Beneficeth, Marcel Pegman, and Borgi. Jordan uses his background in psychology and human behavior to spot those emerging trends in the crypto market. Sam Borgi is a business editor at Cointelegraph where he brings a decade of experience in economic analysis and financial market writing. Marcel Pechman applies his 17 years of experience trading derivatives options and futures to the crypto derivatives markets. Fellas, we are in Shop City this week and are we ever going to get out of this, this job? I'm starting to question things. How are we feeling this week? What's going on, Jordan, how we feel?

I'm doing pretty good. I'm just waiting for something to happen. I always think of that meme where there's like a little guy poking the bitcoin going, come on, do something. I'm like, that's right now, friends.

I.

I think Sam Russell, what's going on?

Hey, Benton. So if we stay at $30,000 or $28,000 low during the worst crisis we've seen over the last decade or so, retail companies dropping 15% in one day, tech companies down 50% year to date. So if we hold the line at 25, $28,000, I'm gonna feel great by n end of the year. Even if it's finished the year $30,000. We stood up to the crisis and bitcoin continued producing blocks. Ethereum ecosystem is growing, so it all seems fine.

I don't know guys. This is giving me a lot of 2018 vibes. Range from hell vibes. You know, remember that 6000 level? It can't fall below 6000 because that's the break even rate for miners. Remember that bull? Well, for me, every time it fails to break above 30k, we keep hitting 30k and just hovering there. I'm starting to think we're going to see one massive puke at some point now it might not be in the short term. I think we're probably gearing up for a pretty slow summertime, but the more we tow that line, the more I think we have one more massive puke coming up. So.

You heard first hot takes all around the panel today. I know we got a action packed show for you all today. We're going to be talking about Eth 2.0 later in the show and we're going to be diving into some of its competitors, how it may be different and what's going on with that ecosystem, we got some of the biggest headlines from Cointelegraph this week that we're going to be diving into. The Bart Simpson pattern returns. We're going to show you that and teach you a little bit about what is a crypto pump and dump. You want to know? You want the basics? We're here this week more in these bear markets. What better time than to come hang out with your friends and learn something, take away something from today's show. So if you haven't, go ahead and like and subscribe COINTELEGRAPH here on YouTube we have the market report every Tuesday, 12pm Eastern coming in hot. And today we're going to be giving away a one month subscription to Markets Pro. So make sure you drop your Twitter handle in the chat because at the end of the show we will pick one winner for that one month subscription of Markets Pro. Let's go ahead and get things started for today. We have our weekly roundup, some of the greatest tweets from this week from the Twitterverse. So Danilo, let's go ahead and jump into our weekly roundup video. All right, quick shout out for all those folks tuning around from the globe today. I want to shout out. I see Catherine Rhodes is back. We have Linda Menez. Rich New Design is back today. Welcome everyone. I see Vikram, the market reports biggest fan. Always great to see you here. Leave us your questions in the chat. We're going to be answering those questions periodically throughout the show. I see Rich New Design has already got some thoughts about this. New York banning the mining of bitcoin. We'll dive into that next. But first, we got some memes for you this week. Danila, if you want to go ahead and pull up the memes. Let's go ahead and jump into what we got this week for the memes. Bitcoin, me US Dollar. That's a classic.

I think it's the other way around.

Yeah.

Lately.

Is the US Dollar actually getting stronger? Let's see, what does this one say? Bitcoin doesn't value because I have like goods and services everywhere. Gold has 11 trillion dollar market cap with zero merchant adoption. Yeah, well, shots fired.

Yeah.

This reminds me of the one where the guy's like head is barely above water and he's like crying and then it's like minus 3% and then below the water it's like plus 18,000%. Classic. That's a good one. I don't know if this one rings true though anymore. This one I don't hear as much.

From the NFP crowd. Now that now the market's kind of like.

I know. Well, those were our memes for this week. Danielle, thanks for pulling those up this week. I see Luciana's in the chat today. What's up Luciana, thanks for joining the show. Folks like and subscribe coin telegraph on YouTube. It's a no brainer like and subscribe easy breezy. What kind of questions we got today? If you have the questions, drop them in the chat. We're going to be checking those. Barix. Good to see you back. But next I think we got some headlines to jump into. Bitcoin's Bart Simpson returns. This pattern, we've seen it before. What does it mean? Well, Bitcoin's price dive 7% in hours. We're going to get into that next. So let's go ahead and get into some of Coin Telegraph's biggest headlines this week from the new side. I'm gonna go ahead and pull up the screen here. Let's see what we got.

Marcel's got himself a little NFT right there.

Oh, it went away, right? Well let's see. All right, we got this article written by William Suberg here of Cointelegraph, the Bart Simpson pattern. What is this pattern? First and foremost, who wants to jump in and tell us what the Bart Simpson pattern is?

Well, as you can see, it looks like Bart Simpson's head, right? You see a zigzag where price consolidates over a while and then it completely tanks right back to, to a previous support.

But yeah, the press can go down first. Yeah, it can be suppressed. Then after a couple of days it just go back to the, the normal level it was before. So it can be a part up or about Bart shifted upside down. But still Bart.

Is this like healthy or is this natural or is this manipulation? When we see these kind of patterns in the charts, like what are your kind of thoughts or takes on this kind of stuff.

Does that chart look healthy?

I don't know.

You tell me.

People like to call manipulation every time the price grows go the other way that they're expecting. If everybody was expecting 30k nobody would be shouting manipulation. But right now everybody's expecting a jump to 34, $45,000. So they scream manipulation. But this chart formation is not exclusive of crypto markets, but typical of illiquid markets. So despite the multi billion dollar, that volume reported by exchange, we all know that over 95% of that is inflated. In fact, bitwise, a Bitcoin ETF proponent even handed a well written report to the SEC regulator back in 2018, showing that most of the crypto volume is fake. So whenever an investor needs to buy or sell $50 million or $100 million worth of crypto in a short amount of time, it causes the BART formulation. So it's not exclusive to crypto, but it's a sign of an illiquid market.

Yeah, they, they happen all the time in the crypto market and you'll see it after because nothing's happening. Nothing's happening. And then a coin's like, oh, we got listed on Binance or something and then it pops up and then after like a few days, people are like, oh wait, there's still nothing happening. So then like people exit the market. It just rinse and repeat over and over again while as long as a whole bear market going on, you're going to see this all over the place with different coin. As Marcel mentioned, it's because of illiquid markets and people want something to happen.

My question is, where's the bottom? Guys, what, what's going on with bitcoin? Sam, what's your take on what's happening with the price action? We talked about the chop earlier. What's, what's going to happen here? What are you doing?

I mean, I had expected the bottom to have formed when you take a look at the volume signature for the massive capitulation that we had back to 25k. If you take a look at when, when a, a massive capitulation coincides with a very large volume spike, that's a really good way to gauge the bottom. So I was pretty confident that 25k could be that bottom. But all the sideways action that we're getting, as I mentioned earlier, I have a lot of 2018 vibes. So are we going to see another capitulation? I think it's, it's more likely than not. For me, the absolute bottom would probably be 20 to 21k. But again, that's because bitcoin has never gone below a previous all time high and I'd have to see that first for me to actually think that's going to happen. So right now that's my absolute line of sand. And if we get a dip below that, then that's going to be a generational buy opportunity. And I don't use those words very often, but I would in that case.

Wow, wow, wow. Danilo, if you wouldn't mind just quickly pulling on my screen, I want to pull up a tweet from credible crypto on. You'll see. He says Nice reaction off our green level, but we are once again back at the key level resistance like 32 to 34k but on lower time frame. This point is similar to the other level that we initially rejected off of that on the left, the red circle. I expect a similar outcome, at least initially for bitcoin. So what he's saying is we're getting some. This is kind of like this support could potentially turn into resistance at this 30 to 34k level. So are we going to break through? What would make us break through this level? Our seller Jordan, curious to hear your thoughts. What, what could get us through the next level, if at all? Or is it all doom and gloom for the next six months to two years?

What do you think, Marcel?

It's a tough question, but I don't think it's something that depends so much on crypto markets, but more on the cbdc. And what are governments going to do? Are they going to print the US Budget? They have money until September, so when we get to August they're going to have to print another two, $3 trillion. And when that happens, people would see that, okay, if they're printing more money again, we're going to have more inflation. So we need to protect our assets against that. So maybe we're on a wait and see mode. What are the governments going to do to react to the money finishing in their pockets are going to they print more, are going to cut the budget. So until the governments decide what to do next, I think we could be lateralized and from a 25 to $35,000 range for the next four months in.

Rich new design here in chat brings up a good point. He says we won't see the bottom until the centralized markets do. I don't think that's happened yet. So a lot of same sentence, I think to your point Marcel, is that a lot of things are still correlated with those traditional markets and we have yet to see, I think the full bloodshed over there. So Marcel, or I'm sorry, Sam or Jordan, any closing thoughts for this bitcoin article?

Well, I think if we're tracking traditional markets this Friday, I think we have the CPI report. So if you want to gauge monetary policy expectations and what the Fed is going to do, how, how aggressively the Fed's going to hike the next CPI report could be really important because it kind of gives a sense of has the headline inflation peaked or not and to what extent has it? If the CPI grows at a much slower rate, that might alleviate some market pressure because investors will start to say, okay, you know what, maybe they're not going to raise rates as aggressively now that inflation is starting to come down. But if we still see it around 8%, it's still going to fuel that narrative that the Fed has to fight inflation at all costs. And that for me is a good short term catalyst for where the market could go in the next few weeks.

Expeditiously. They need to be fighting that, that inflation. So big day as Sam mentioned. Jordan, any thoughts there on Bitcoin? What's your take?

I just think it's going to be really hard to pick any kind of bottom with all that's going on in the world, whether you're talking about the US dollar or conflicts and all this stuff. Like we're not, there's no like 100 psychics here. We don't know like the system is clearly breaking. I think I posted the other day, I've never seen the, the word trillion thrown around so cavalierly as we have in the last like five years. If you think back to 2008, they spent like 800 billion and they tried to keep that a secret to, to bail us out and now we printed like 4 trillion in the last few years which is twice the market cap of the whole cryptocurrency market. So like this system is clearly breaking. How long are they going to stretch out? I have no clue because I thought it would have been broken by now, but I don't, don't, don't bet expect anything people because right now we're, we're in a like multi generational change over into a new system and it's not going to go the way we all, any of us expect it.

Exactly. It's, it's, it's time for change. But I mean at what cost could that mean that we, we transition over to new system so only time will tell. The other headline. We have two minutes here and I want to get into this. I don't know if you all saw this, but bad day for Binance. We see targeting the BNB coin as a potential security. Folks, are we in another XRP situation? Who wants to kind of like outline some of the facts around this particular article? This was one of the biggest headlines this week. Marcel, Jordan or Sam, feel free to jump in and give us the skinny. What's going on here with bnp? Should we be scared? Are you a holder? And if so, what should you be doing?

So apparently they had an initial coin offering that was available to US residents. That's what I'm gathering Or else the SEC wouldn't be up in their grill about this, which is probably a huge mistake on their part. Anybody who launches an ico, you should blacklist the US like you would blacklist North Korea, for example, because you do not want to deal with the sec. So if the ICO was launched for US Residents and they participated in it, it seems like the SEC is really gung ho on treating it as a security offering, in which case you have to actually register with the sec. A failure to do so could lead you into some hot water. I don't know if it could be resolved with a fine. Paying a fine. I don't know how much is going to go down that road, but not good for Binance at all.

My next question is, it seems similar.

To what was going on back in 2017. 22. I remember seeing the ICO for Binance. Are they going to get the Block 1 treatment where they raised $4 billion and they get fined like 20 million? Are they going to get the Veritasium treatment where they're like, give us everything you raised and then, like, every month, all the money in your bank account as well? I'm. I'm banking just because of the size of, of finance that it'll be a nice find, but more of a slap on the wrist because that's the general go to for most financial, large financial institutions in this country. So we'll see.

We'll see what Dirty Gary does.

I was going to say it looks like. Wrong again. Ask is Gensler the most hated man in crypto? Yes or no? What do you guys think? Where do you stand on Gary Gensler?

Well, I just called him Dirty Gary, so I think, you know my take on that.

I, you know, that could be, you know, a very, a very nice, I guess, nickname, depending on where you are in the world.

Oh, I'm pretty sure there's quite a few more people pissed off with Do Kwon right now than Gensler, but.

Yeah, yeah, yeah, absolutely, absolutely.

Who's more hated right now? Do Quant or carry? Gensler. Doequan, for sure.

The people ain't showing up at Ginzler's house trying to take out his wife, man.

That's true. That's true. Well, let's go ahead and segue over to our quick crypto tips for this week. Go ahead and jump in, Danilo. All right, folks, you want to know what a pump and dump is? You got to be on the lookout for these, because this is when criminals can easily inflate or deflate the Price of a very small or unknown cryptocurrency, sometimes sending the value of these currencies skyrocketing. We want to take care of you, and this is our segment where we teach you the fun facts. And this one, you got to be on the lookout for what happens during a pump and dump. Well, when unwitting traders rush in and try to grab a piece of the action, the criminals wait for the price to increase before selling all their coins and causing the price to completely plummet. They can pump up the price, promoting it on social media before selling it at a higher price. So very easy idea and concept. They get in early on the ground floor while the price is almost zero. You come in later. Once that price pumps, they get out, they dump their bags on you. Be aware of those pump and dumps. We take care of you here on the market report, so be on the lookout. Especially during these bear markets. You never know what's out there. So pump and dump. That's your crypto tip for the day. Now we're back. All right, well, what do we got going on in the chat today? I see a lot of people chattering about do Kwon next on the chopping block. Tether. Is tether fud coming back. Is that going to be a thing? No. Okay. Sam said no. All right, well, I.

It's been a risk since it was created like five or six years ago, so nothing changed.

Facts. All right, well, we. I know Marcel's got the news for us today about Bitcoin and Ethereum. What's going on that professional trading side? You want to know? We're going to listen to Marcel. He's going to show us the way. This is the way. So let's go ahead. Marcel, why don't you go ahead and take this away for Bitcoin and Ethereum updates this week.

Okay, guys, so let's stop analyzing cryptos for a minute. Let's take a step back. A lot has been said about the correlation with The S&P 500 and NASDAQ stock markets. So, yes, firstly, both markets, the bitcoin and stock markets, have been moving in the same direction 85% of the time. That's kind of unprecedented for such a long period, and there's no argument against that. So. Danilo, can you share my screen, please? So basically, the correlation is a metric that if bitcoin goes up 2% and S& P in the same day is going up 1%. So it's a good correlation, a positive correlation, because they're both moving in the same direction. So this has been the case for the past two months. As on days that S and P goes negative, so does bitcoin. But we've seen that in the past. For example, in December 2020, a similar pattern emerged, and it lasted for two months. The correlation stood at 75%. But what happened after January? In February 2021, the correlation went down to zero, signaling that there was no relationship between the two assets. Oh, sorry. Let me share my screen. My fault. There go Danilo. So there you have it. So the correlation right now stands at 76%, but it has been around 80% for the past two months. And a similar case happened in December 2020. Again, for two months, the correlation stood really high. But what happened there? Stimulus package and $2,000 checks. So everybody had free money to spend on risk assets. So the NASDAQ went up and the bitcoin went up. And that was not the first time. Back in January 2020, when the COVID 19 started to spread and people were desperate and oil went to the negative $40, every market in the world plunged. It was hell. Bitcoin went below $5,000. So during that period, early 2020, there was a high correlation. It stood at above 65% for 140 days. Only to the couple just went to zero and to the negatives just a few months ahead. So thank you, Danilo. Thanks for sharing. So what's the pattern here? Whenever there's a seismic macroeconomic event, such as retails and tech stocks dropping 15% in a single day, so investors attention shift away from crypto markets. I mean, who cares about a novel defi application or a bitcoin lightning network? When their jobs and companies are on the line, they simply don't care. On the other hand, when the government is giving away free money, unreal interest rates are negative. Why not pick the riskier assets? So even though you have zero understanding of defi NFT play to earn Bitcoin Ethereum, you just buy it if everybody's buying as well. So that's what caused the $69,000 bubble in November 2021, and that's what sustained the ecosystem growth. But this trend has stopped. Danilo, can you share my screen again, please? So here you have a Google Trends search for the term crypto, and you can see that it peaked in May 2021 and then again in November 2021. That's when the crypto market started to plunge from $69,000, the peak. So we've seen a recent fake out here. In May 2022. But basically over the last six or seven months it's been a downhill in crypto search trends. So people do not care about crypto right now because they are worried about their jobs, they're worried about, about their S and P and stocks investments. So until the macroeconomic shifts away from inflation, layoffs, weak economic corporate results, there's little hope for a consistent crypto market decoupling. Meaning that the correlation should remain high until their attention shifts away from this panic, this crisis mode.

It's interesting you brought that up because like Tesla laid people off, Coinbase laid people off. You kind of see this, this pattern starting to happen and like I'm curious to know like if you're a professional trader, Marcel, what are you doing right now? Are you just sitting on your hands and waiting for, you know, things to, to go lower where you think it's an even more of a value buy? Like how are the professionals approaching things right now?

First of all, professionals, they know how to separate their short term trading wallet to their long term assets that they hold forever, indefinitely of the market moves. So yes, my bitcoin wallet for the long term won't be moved regardless if the price goes to $60,000 of $15,000. But watching @ a broader perspective from the markets, I do agree with Sam. I do think that some macroeconomic negative scenario could take place over the next six months and that would cause Bitcoin to go maybe to $20,000, $24,000, but we're going to see a retest of that level. So professional traders right now are playing like, okay, I'm holding some my positions, Amazon, Google or Bitcoin or whatever for the long term. But I'm prepared if the market crashes 20.

30%. I want to go to the chat real quick and I'm going to let Jordan and Sam jump in here with any kind of questions I have. Catherine Rhodes asks, is zero correlation more healthy for Bitcoin? What are your thoughts on this.

Marcel? I don't say, I don't think that the word healthy is the correct answer, but it should be more expected. Zero correlations since tech stocks depends on growth and free money and Bitcoin doesn't depend on anything of that. Bitcoin is not a company, it is not a software, it is a protocol. So even if we don't change a single line in Bitcoin for the next 10 years is going to continue working. Tesla on the other hand, if they don't hand out, if they don't ship products, if they don't create Stuff if they just stop producing things, the stock would go to zero. But that's not the case for Bitcoin. That's why stocks and other markets need some growth, economic growth. And Bitcoin doesn't depend on economic growth or anything like.

That. Sam and Jordan, any questions for Marcel that you guys want to jump.

Into? I guess I would say, Marcel, do you expect the Federal Reserve or central banks to shift course maybe later this year if they are raising rates into a declining economy, you'd think that at some point the attention is going to have to shift back to promoting economic growth. So I'm just wondering, do you see any kind of shift if the economy gets really bad, if the PMI is continue to decline, if layoffs continue to grow, do you think we're going to see more of a pivot from the Fed, maybe in the fall? That's my expectation.

Anyway, yes. Let's assume you were the chairman of the Fed. Would you be like to be the person who raised interest rates during a global crisis? So people are going to get layoffs and stuff? Nobody wants to press that button. Okay. Increasing the interest rates despite the slow economy, no one will do that because that will basically end his career because people would hate him forever for doing that. So it's easier for him to say, well, I think it's inflation is starting because of the war or because of the weather. It's not something that the Federal Reserve did. So we're not hiking interest rates anymore. We're changing the base here. We're going to wait for another six months until we revisit. So yes, I do think the Federal Reserves won't be able to keep pushing the Fed rates up as the market goes to a downturn and the economy.

Slows. It seems like even though that's not the popular idea, what's neat, like what can actually fix what's going on? There's not going to be any change in the inflation rate until they bring interest rates up a little bit more to actually kind of compete with that. What can they do? If we're all going to start feeling the pain, they're going to stop raising interest rates. What's next after that? Like our prices just going to keep going crazy or.

What? I mean, you're telling me you just like can't print.

Money? They can't. That's going to cause more inflation. So it's easier for them just to say, well, we're going to stop raising rates and wait for another six months to see what happens. Because if the economy Slows down for itself, the prices will go down because there's no demand, there's no people buying stuff, products and.

Services. Yeah, for, for a long time I just thought you just print money and fix all the problems. Seemed like the solution to everything. Well, tell us your strategy for those watching at home. Tell us what you're doing right now. I see. Wrong again. Saying he's holding more cash now than ever. He's waiting for a double bottom. So tell us your strategy. How are you approaching these markets? What are you doing during these times? You know, what are you looking for? Tell us in the chat. We're going to look at that a little bit later. Next things next though, we got to get into what is ETH 2.0 and how does it, how does it stack up against the competition? What's going on? We've heard Eth 2.0 for the last what seems decade. It's coming now. I think it's starting to actually get here. So let's go ahead and dive into this. I know we got all the experts on the panel ready to chalk it up with you X's and O's about what is E 2.0? Let's go ahead and jump into our segment today. I guess we don't have a. A screen for this. Well, all right, E 2.0. You guys want to know what this is? Well, it's also known as Serenity because you may heard it and this is an upgrade to the Ethereum Blockchain upgrade aims to enhance its speed, efficiency and scalability of the Ethereum network so that it can avoid bottlenecks and process more transactions simultaneously. Everyone hears the biggest issue with Ethereum is the price of gas fees. E2 aims to solve this by implementing this upgrade. So how is it different from previous iterations? Well, I'm going to hand this one over to Sam to kind of walk us through. Why is E 2.0 different than what else has happened previously with.

Ethereum? Sure. So I mean, Benton, as you mentioned, Eth2 is an upgrade. It's the latest infrastructure upgrade on the Ethereum blockchain. So just by recognizing that, you see a difference from the Eth1 or the first iteration. Now, Eth1 is being called the execution layer, where smart contracts and network rules rules reside, while Eth2 is known as the consensus layer, which basically ensures that everyone contributing to the network are acting in accordance with its rules. So of course, when it comes to Ethereum development, there's always multiple phases. The first phase, as many of you have probably heard was the beacon chain going live. This was back, I think in December 2020 you had people sending their E to the beacon chain, basically introducing native staking on.

Ethereum.

Right. The idea that you can earn passive rewards while holding Eth, locking them up is a very attractive option, attractive bet for a lot of Ethereum holders. And last I checked there were billions deposited, I think over 10 billion. Don't quote me on that. It's been a while since I've looked, but it proved highly popular in terms of Ethereum being used as a staking mechanism. And that really gets you to the, really the main core of this upgrade. They want to transition from the proof of work to a proof of stake and all of the, you know, energy kumbaya that comes with proof of stake, you know, they're all about that. The second phase is the merge and I'm sure many of you have heard about the merge. Supposedly it was supposed to happen sometime in the second quarter, but it's been pushed back. It'll basically the merge refers to the merging of the beacon chain with the Ethereum mainnet and the final phase is the sharding mechanism which will play a key role in scaling Ethereum. So those are just some of the overarching themes for Eth2 and how it differentiates from the Ethereum that you already know.

About. Can't see me eth E 2.0. When is it coming? Nobody.

Knows.

Never. I see a lot of people talking trash in the chat. Jeff Bogle, E2 the Tech the World will never See. Yes, the highly anticipated E 2.0. I mean, we've been talking about this for what seems like years. Jordan, I want to know why is E 2.0 important? Why don't you tell us about. You heard Sam's explanation, but why is it important in your.

Opinion? Well, the main thing, as I mentioned, is that it's switching from proof of work, which is energy intensive, distributed around the world, to proof of stake, which allows people to lock up their tokens on the, on the network as a way to contribute towards the validation process and earn rewards. That's basically the main thing of it. Like if it would be more important to me if they kind of tackle the fee issue the first at the beginning, which is probably going to take another year before that even gets a year after they kind of release the merge and everything. So yeah, it's just kind of switching away from playing more to the ESG crowd, environmental, social, whatever, how that's kind of moved into the investing realm and Taken over smarter, smarter minds. But the basic thing is they're trying to save energy, appeal to more people. And personally I think that Bitcoin's kind of dominated the proof of work scene on the global scale. And so Ethereum is having problems, problems keeping up with that. So they're kind of switching over to the proof of stake just to be more, to appeal to more people and to give a different possible way for the whole network to upgrade and become more scalable because its current, current form, it's not really handling what the load that it needs to be able to.

Carry. Very well said. Now Marcel, we talked about some of the pain points. Everyone kind of knows this, but why don't you highlight what are some of the problems that eth2 hopes to solve? What does that kind of look like from where you.

Stand? Okay, so the scalability problem is the biggest issue we face in crypto right now. And that's just not Ethereum. So what does scalability means? It means high outputs, so a high level of processing capacity. Solana, for example, does that recurring to validators that have really strong computers. Bitcoin solves this issue by using the layer 2 so lightning network. So the consensus mechanism that Ethereum 2.0 seems to be solving is number one, shifting to the proof of stake model number two, using the sharding which is parallel processing. So it's like having 64 blockchains running in parallel, so you have higher capacity and higher output. So that's the problem that Ethereum 2.0 is trying to solve right.

Now. Excellent. We appreciate those insights. I'm going to look into the chat real quick. Looks like vikram saying eth 2.0 sharding another 18 months. Looks like we have will. What are they asking? So why should eth go up because of this is a good question. I want to know is ETH 2.0, once everything's said and done, what kind of impact will this have on the price of the actual asset, if at all? I'll start this out with Sam. I want to get each one of your opinions. Will E2 actually have an impact on the price of it? What are your.

Thoughts? Yeah, I mean you can get a buy the rumor, sell the fact scenario happening. I think where a lot of the excitement and the buzz is going to lead to a sharp rally before a sell off. Once it's actually launched, I think it'll be positive for price in general. People are really looking forward to the merge and any kind of positive development and network development for ETH and The migration I think is going to go over well, but initially I think you could see a buy the room or sell the fact type.

Scenario. George Yeah, I think you, I agree with Sam. We'll probably see like a nice little pop off and then pull back long term, definitely a positive for the price in my my view on top of staking, which removes some of the coins from circulation to allow people to earn a yield off of that, that kind of removes again removes coins from circulation. So the price might go up as demand if demand continues to increase. And you got token burning as well long term that. Well overall I think they're trying to make it a deflationary currency. We'll see how that works. But I do think long term, if they can finally launch it, solve for especially when they solve problems with fees, it's really being good for the price of Ethereum. But crypto, you always get a nice little pop, sell off and then we kind of get back to the trading. So we'll.

See. Marcel E 2.0 going to.

10,000 right now I don't believe that's going to happen, but firstly and foremost because of the global macroeconomic scenario. But even if that was not the case, I think that's going to take a lot of time for the smart contracts and the decentralized applications to move from the old system to the new sharding parallel processing system. So it's not simple. Okay, I've upverted the networks to 2.0. It's gonna take a time until all the defi applications, all the gaming metaverse, NFT markets, they move to the new system. So I don't think it's the case of what Sam said. So buy on the rumor, sell on the news. Because the news is gonna take a whole year or even more for those smart contracts to adapt.

Themselves. Exactly. Jeff Fogel just bring in the jokes today says buy the rumor, sell the lackluster news couldn't be more true. And I also want to kind of zoom out for a second. I know we always there's this topic of what will be the eth killer in time. We've had this discussion many times at Cointelegraph, but ultimately you kind of have to look at the ecosystem. Everything is tied for the most part to Ethereum through EVM compatibility, the language that it's written in. And so kind of like looking at the ecosystem, a lot of things are tied to this, what you could call as like a base layer of Ethereum. So in theory, the better that Ethereum gets or efficient the network becomes, the better all the other projects that are related to that could potentially become. So I think I don't see one particular project killing Ethereum, which kind of leads us into our next segment. There are competitors. And when we kind of think about what blockchains are doing and the evolution of them, it seems that each blockchain is going to start to specialize in a certain area, whether that be enterprise, whether it be defi, whether it be gamefi. And so the one blockchain that I think is going to give Ethereum the best run for its money, which ultimately I don't think it will kill it, it will kind of still take up a large market share, is Avalanche. And so what makes Avalanche different than Ethereum? Well, transaction throughput is one of them, as about 4,500 transactions per second. And a key feature to this is also their subnets ecosystem. These are like individual blockchains within the blockchain, which allows these blockchains to be built where their native assets can be used to operate that blockchain. So you don't need to use or hold Avax, which is the native token of Avalanche, to actually operate within that subnet. So to me, that's a key feature that I think really separates Avalanche from Ethereum, which also makes it super scalable. And so when we're looking at and talking about the issues with Ethereum, one of the big problems is scalability. Right now we're very early in the ecosystem. What happens when billions of people want to start using Ethereum? There's going to be issues there. I think Avalanche is very well prepared for that flood, at whatever point that may be, if that's months or years in the future. Super cheap transactions, which everybody loves. I think people have got to know those very well over the last couple years with a lot of the other competitors that I think folks will mention. And they've distributed validators, which I think is huge for the network and the security of that network. So there's no 51% attacks. Avalanche has shown to be super resilient and very secure so far, and it's very nascent days. But that's when I think what will be one of the stiffest competitions to what could be Ethereum 2.01 day. I will hand this over to Jordan next because I know he's going to be talking about Solana and what that's all about and why it could be a even bigger competitor to Ethereum. So Jordan, take the.

Whiteboard. Yeah. The reason I kind of focusing on Solana as a competitor. Ethereum is because it kind of takes a different approach to the whole development scene than all these other ones that are EVM compatible. Like that wasn't their goal originally. I know they've been having a rough go lately, the chain keeps shutting down. But all, even Ethereum had a hard time early on his day. And if you don't know, there's Ethereum Classic, which was the original Ethereum, because things happen, forks happens, stuff like that. Maybe we'll get it eventually. Solana and Solana Classic, I don't know. But I do think that long term Solana is the, the better option just because it has so much promise, so much ability to scale up to 65000 transactions per second. I know currently I just checked and it was at like 1800 transactions per seconds, which is already faster than Ethereum. But again, high scalability, low fees. Plus it's got a really good investment network behind it. Lots of people investing money, whether it's Sam Blinkin Freed and his organization with FTX or other venture capitalists. I just think there's a lot of backing behind Salana and they're putting a lot of money into developing the tech. Yeah, it's having some problems now, but long term, when they get that solved, just like Ethereum's trying to solve its problems, they still can't scale. I think it'll be a definite component competitor to the Ethereum network. So I'm going with Salon on that.

One. And no network is perfect. Right? They all have their flaws and they all have their pros. But Sam, I want you to talk about the particular blockchain that you feel like could be long term competition to what E 2.0 is. Go ahead and jump in.

Here. Well, I consider this to be a thought experiment. I'm not necessarily saying it's going to be a long term, you know, viable competitor, but I am looking into Cardano. You know, I know that there's, you know, quite a bit of criticism over the rollout of Cardano and how long that's taken. But also maybe that's a positive in the sense that you're seeing a lot of network issues. A lot of the projects that have launched already, you're seeing a lot of changes in the road map, you're seeing a lot of delays. You know, what about a concept where you actually take a very slow and steady method, methodical approach to development over many years with clearly delineated roadmaps that are actually going to lead to an end product that you can actually use. So for me, that could be an interesting thought experiment as to why Cardano could eventually emerge as a viable blockchain. There's also the Ouroboros consensus protocol, which is the first pos. From what I can tell, that was proven to be secure. So a lot of Cardano success relies on that, and I think we've seen some good things there. So overall, you take a look at Cardano's ecosystem. You take a look at. I shouldn't say ecosystem. I should say it's backing its supporters, the people who are behind the project. It's massive. So I think it's a different approach to development, and I think it could be one that we should monitor over the next few.

Years. Very good insights. And I'm surprised no one picked, you know, Terra Luna. But that's okay. I'll let Marcel finish up here. He's gonna touch on what he believes is a potential competitor to ETH.

2.0. Okay, Bethany. So I think right now, BNB chain. So the Binance Smart Chain is a decent enough competitor. And people may ask, so it could be deemed a security in United States. Would not. Would that not kill the BNB chain? No, it's two different things. One is the Binance Exchange, the other is the BNB chain. So it takes us to a second question. So how decentralized is the network? Okay, so right now they have, I think, 21 validators, and those have been previously chosen or approved by Binance. But if Binance gets steps away from the loop, there's a foundation or whatever, a group of users that selects the validator. It continues to work. It doesn't depend on Binance Exchange. And my last point is Binance has enough money, money to buy some competitor to expand the ecosystem. This mean they could be buying developers, they could be buying technology, or they could be buying Avalanche, Token and everything. With that, the foundation and whatever, they have rockets. So I do think that BNB chain, Binance Smart Chain, is a decent enough.

Competitor. All right, well said all around, gang. Everyone's got their points. I see the chat is blowing up, though. Looks like Omar B. Agrees with Sam Ada's benchmark for decentralized blockchain infrastructure for sure. We got hot takes. People don't like Avalanche. Too inflationary. Seoul, we have people throwing shade saying it's dominated by inside investors. I mean, like I said, every chain's got its pros and cons. Time will tell where the cream will rise to the top. Special shout out to Algorand. I see. Wrong again. Is Shouting them out in the chat. Yeah. Folks, any, any closing thoughts here? And then we'll move into our markets pro segment to give you the two coins you should have been looking at this week. Sam, I see you want to say.

Something? Oh, I don't want to say.

Anything. No, I'm.

Okay. Not at.

All. All right, let's get the show.

Moving after looking at Cardano, that's all.

So he's absolutely thrilled to be talking about Cardano today, folks. All right, well let's go ahead and get into our markets pro segment. We're going to highlight two of the coins that you should have been watching this week. So Danilo, let's go ahead and jump into our markets pro segment for this week. News quakes folks. Those are those automated alerts that instantly notify users when market moving events happens. This week it was that token bite trading on the ticker V I T E. Yeah. Well what happened this week? Well, the vortex score went to the high 80s flash to alert Marcus pro subscribers and this is historically favorable outlook. Well veit a token that allows for simple token transactions and smart contract executions on the vite network. On June 1 that Newsquake alert noted that Binance US was listing Byte and the next day another one informed subscribers of that token was was available on Binance US Buy crypto page. Well what happened? That price spiked from 3 cents all the way up to a 13.7% gain. That's that newsquake alert. That's why you have markets pro and that's why you are constantly tracking that platform. So you get those notifications in the next one. This week, the next token we were tracking through our vortex score indicator was auto trading under the ticker auto. The vortex score is a comparison between the current market conditions and those of the social ones in the past. 80 or higher is considered confidently bullish. 30 or below indicates historically bearish conditions. Well, this week auto saw that vortex score flash green several times as the token exhibited historically bullish trading patterns. High scores. First flash on June 1st and sure enough that price soon climbed to $223 from 223 hours all the way up to $242. That's an 8% increase. Well, if you would held it a little bit longer until June 3, you would have written that all the way up to $290. That's a 30% increase. And that's the power of hawking the vortex score. You could have gotten in on auto. 30% gains. Bear market, bull market. We don't care. That's what Markets Pro does. Gives you the power to trade on that knowledge, gives you and move fast. So if you haven't, that's why we're giving away the subscription to Markets Pro at the end of the show. So make sure you're dropping your Twitter handle in the chat so we can give that away to you one month free so that you can get them trades like that. That's huge. And folks, if you haven't visited the swag store, I see Jordan's got his shirt on today. Sam's got his shirt on today. Store.cointelegraph.com we have all the crypto swag load up. I think the holidays are coming up in the next six months. Make sure you get in there now because it may be sold out. You may want to get in there now and get your gear. So store.cointelegraph.com and folks, we're going to go ahead and pick our winner this week for the one month subscription of Cointelegraph Markets Pro. Guys, I'm going to let you give your closing thoughts for today's show. I'm going to honk the chat, drop your Twitter handle in there so that I can pick you. I'll start off with Marcel. Give us your closing thoughts for today. Leave the crowd with something they can live off of until next Tuesday.

Marcel, I think go outside, live your life. I don't think we're going get to get away from the $30,000 so soon. So it's not a matter of who stares at the screen the most that will earn more money. It's who is better prepared. And to be prepared in crypto it means not doing too much leverage, not betting on a single coin or not trusting blindly on influencers or anybody. So do your own research. Take one step at a time and when in doubt, just retreat. Go outside for a day. Just exit all your positions. Don't.

Panic. Sound advice. Sam, why don't you jump in? Next final thoughts for TODAY.

Show. Sure. Sometimes the best move is not making any at all. So if you're holding assets, if you're holding, you know, bitcoin, for example, and you're really concerned about the market moves, sometimes the best move is just to stand pat, you know, recognize the potential value of the commodity that you hold and have that long term time horizon. If you're an investor, that's how you should be thinking anyway. If you're a trader, it's a separate story. But most of us don't make it in trading. So Again, some of the best move is, is no move at all. Most people get wrecked in bear markets because they react and you don't want to react if you're an investor like.

That. And Jordan, the floor is.

Yours.

Yeah. For all those people that are always wishing, I wish I would have got Bitcoin at 100 bucks, realize that most of the time you would have been spent in the market like this and it's not that fun. Like Sam mentioned earlier, he's flashing back to 2018 when we range from 6,000 down to 3,000. And then Marcel mentioned that in 2020, the price of Bitcoin fell under 5,000. That's two years, folks. Two years of range trading. It popped up a little bit.

Then it came back.

Down. So if you're like expecting a real quick end to this or you're like, we're going to get Lambos next month, prepare yourself for some disappointment and realize like, this is a rough game, it's going to take a long time and just kind of hang in there. Try and find a way to entertain yourself outside of cryptos because we might be in for a two year, sideways boring market. So. But you're early. Someday somebody will say like, I wish I could have got Bitcoin at 30,000. And you're like, I did. It.

Sucked. Exactly. Bear markets are for building and for learning. If you want to get ahead, you gotta learn during these times when it's boring. Exactly right. I think the whole panel said, step away, take a break from crypto. Even though crypto is your life, it's okay. You can take, you can take some days off here and there. But now is the time for building and for learning. If you, if you're in the space and you're building, these are where great projects are built, is during bear markets. And then if you're an investor on the retail side, learn as much as you can. Figure out all these new projects, what's going on in the space. Today's winner for the markets pro is Catherine Rhodes at Catherine Rhodes, we're gonna hit you up on the dm. I see rich new design. We're gonna also hit you up. I think you're last week's winner. We're gonna make sure that you get that 50 gift card from last week to the merch store. Catherine Rhodes, congratulations. We appreciate you tuning in in. You've been an awesome guest. I see you tuning in in the last couple weeks and thank you for everyone else that's tuning in. We love everybody here. We appreciate everyone joining today for the market report until next Tuesday. We will see you. Make sure you like and subscribe. Coin Telegraph until next time folks. Over and out. Thanks for joining.

Us. Sa.