Game changing crypto A.I. play! + Biggest ETH upgrade imminent!
Overview
Final dress rehearsal for Ethereum Shanghai.
Markets: BTC fails to close above $25k resistance.
A.I. audits Ethereum smart contract.
NFTs: Pokémon franchise seeking a Web3 head.
Good Morning Banter Fam,
It's the final dress rehearsal for the much anticipated Ethereum Shanghai upgrade. The Ethereum developers completed the “Shapella” upgrade that allows the withdrawal of staked ETH from the Goerli testnet yesterday.
With the development, Ethereum is one step closer to its much anticipated Shanghai upgrade (EIP-4895), which will allow the withdrawal of more than $28 billion worth of ETH staked on the consensus layer of Ethereum. But there is much more to it than that!
Here are some predicted effects of the Shanghai upgrade:
Increased participation by validators, further decentralizing Ethereum.
Increased competition for validators, driving innovation to garner stakers.
Liquidity injection into the Ethereum network that's been locked for many years.
Increased confidence in Ethereum and its staking mechanism.
Allowing for the portability of staking ETH without the long lockup period.
Market update 🌍
Bitcoin Analysis
BTC climbed to a high of $26,261 yesterday, its highest level since June 22, when the market was heavily affected by the collapse of Terra. However, profit takers pushed BTC below the $25,000 resistance level, creating a pinbar (inverse hammer) candlestick pattern on the daily chart. The pattern typically forms in an overextended market that needs to correct. Unless there are positive macro updates in the coming day, it's likely BTC reaches the $23,000 support level in the coming week. BTC completed the daily candle up 2.32% to $24,647.
High-resolution chart.
Newswatch 📰
A.I. audits Ethereum contract. Conor Grogan, a former Coinbase director, recently put ChatGPT v4 to the test by inserting a live Ethereum smart contract into the chatbot. To his surprise, ChatGPT quickly identified several "security vulnerabilities" in the code and even outlined ways in which the contract could be exploited. Grogan noted on Twitter that the contract had actually been hacked in 2018 via the very vulnerabilities that ChatGPT had highlighted. This experience led Grogan to believe that AI could play a crucial role in improving the safety and accessibility of smart contracts, which have been a major barrier to mass adoption of cryptocurrency.
NYDFS claims signature bank takeover is not crypto-related. The New York regulator responsible for taking over Signature Bank denies that its decision was related to the bank's dealings with digital assets in response to criticism from former congressman Barney Frank. Instead, the regulator said that the decision was based on the bank's ability to conduct business safely and soundly and the bank's provision of unreliable and inconsistent data. Frank had suggested that the bank was closed due to regulators' disapproval of banks' involvement in crypto.
Circle regains access to SVB $3.3b. Circle, the issuer of USDC, has announced that it has regained access to $3.3 billion worth of funds held with Silicon Valley Bank after its collapse. This has restored confidence in Circle and USDC after the disclosure that the funds were held with the failed bank caused them to lose market share to USDT. Jeremy Allaire, Circle's CEO, stated that most of the funds were able to clear.
News tidbits:
Anchorage Digital laying off 20% of its workforce.
Cryptio partners with Filecoin to help miners generate accounting reports.
Coinbase to add support for Uniswap (UNI) and Aave (AAVE) onto its L2 blockchain Base.
NFT & metaverse update 🐵
Pokémon franchise recruiting a Web3 Corporate Development Principle.
Unstoppable Domains rolls out .polygon domains.
Banter’s take
Phew, what a week for crypto and the financial sector in general. The collapse of the Silvergate and Silicon Valley banks has completely shifted market sentiment across the board. Moreover, the Fed's probability of increasing rates beyond 5.00% has essentially evaporated. It looks like the era of quantitative tightening has peaked.
Bitcoin was the first asset to smell out the shift in the market, climbing to highs it hadn't seen in nearly nine months.
Subsequently, an easy money environment is where Bitcoin thrives, and this week's developments may have forced the Federal Reserve to begin shifting its game plan in that direction.
Gabriel
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