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CRYPTO 101
Crypto Rundown: The Bullish News in a Volatile Market & Passive Income in Crypto with Liquidity Pools
01:12:49
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Foreign.
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Welcome back to the crypto rundown where we talk about everything that's going on in the great world of cryptocurrency and blockchain technology, from the fundamentals in the news to the technicals on the charts. We spend the time doing hours of research so that you all don't have to. And then we come and we bring it to you completely for free in under an hour and. And man, we're back with another episode and I'll tell you all what you know. It's been a pretty exciting past couple of weeks in crypto. I know Bitcoin and Ethereum rivaled the all time highs. That was immediately followed by a decent sized sell off. Which brings us to where we are today. A lot of people are asking, what in the world's going on? Is the bull run over? Why are the markets chopping around so much? Can we recover back to the highs? And what are these driving factors? What are these catalysts behind the scenes?
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And.
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Well, that's exactly what we want to talk about in today's rundown. So if you're coming in, you're certainly in the right place. No matter where you all are coming in from, we know that you're in the right place today because we're going to be covering all of that and a whole lot more. And of course, I cannot do it without my good old buddy and friend and co host over here, Mr. TiVo.
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And an awesome day. Great Thursday to everybody. The chat's already popping, man. Fitz is here. Classic. We got Rodney, we got Debbie and Noah and a couple other people trickling in. So an awesome afternoon session in the YouTube Live community and yeah, an awesome episode. A lot going on, there's a lot to talk about, as always right now in the markets. There's upside, there's downside, there's volatility. So we're going to cover all that, we're going to cover the news. And then we have, yeah, cool little. A cool little tidbit at the end here that we haven't done before, but like basically a little intro tutorial about something that you are an absolute expert in, which is liquidity pools. And it's kind of the, the title that people were excited about. We're getting some clicks from the community on the hidden strategy that pays you daily in crypto. So a normal rundown episode to start and then if you're interested, you stick around and Brendan's going to give you some absolute alpha of something specifically in the crypto markets that he is a Expert in.
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Yeah, spot on, man. You know, make sure everyone stays around to the end. We're going to be talking about liquidity pools and what that all looks like, explaining it, doing a little bit of a walkthrough over there. So I hope all of you are excited for that. But I mean, before that, you know, we're going to be looking at the charts, we're going to be walking through everything. Like TiVo said. We got a bunch of new price predictions, different people pulling different kinds of data from banks to the government to people all over the place, and even some new like listings and IPO rumblings from the crypto market. So quite a bit that is going on here in the background and certainly a lot to talk about. And I think the only proper way to start this off, and we typically do it this way is just by looking at the charts because I think that's what people are ultimately, I don't want to say the most concerned with, but that's what people really care about. Right? You know, what's happening with my wallet, is my money going up, is it, is it going down? What's really happening there? And I think that's what most people probably pay the most attention to. Even with some of these other things that we're going to mention being just driving factors and pushing price up and down. So if we take a look at like what's happening on bitcoin here first, let's put this on the screen for all of you. I mean we can see, you know, hey, we're pushing down a little bit lower here. Bitcoin's back at around 112,000. We're coming off that fresh all time high of 124,000. And now what we've seen here is that, hey, from top to bottom, Bitcoin's down about 10%, 9.8% to be exact, but it's down about 10% from its recent all time high that we hit last Thursday, I believe it was. Yeah, so last Thursday. And with this, you know, there's a couple of factors I think. Number one, and we've talked about this before, I don't want to beat a dead horse, but for anyone that's new and in here for the first time, and you haven't heard me talk about this, all of the large market cap, you know, groups or projects were all hitting all time highs and with that they were all at all time high resistance levels. So bitcoin for instance, we broke out the new all time highs. Here we are retesting this previous all time high resistance, we tapped it, we rejected. I think the big ones to watch out for is as we zoom out on Ethereum, it was tapping its previous all time high over here for the first time since 2021. Pretty big deal. We know it's a monumental resistance level, but we also saw the exact same thing on the total 2 chart. This is the entire crypto market cap, excluding bitcoin. So this was hitting the all time highs for the first time since, you guessed it, 2021 as well. Same thing goes for the total three, which is the entire crypto market cap excluding both Bitcoin and Ethereum. So a better representation of altcoins and what do you know, this was tapping its all time high levels that we saw in 2021. We actually saw this tapped in 2024 and at the very start of this year as well. And then we are pushing back up to this level. So we're talking about monumental levels of resistance specifically for the altcoin side of things as it's pushing in to, you know, its all time high resistance level. And so when you look at that and the other thing is like, it's not just like it's a theory. I'm the total to the total three. We saw this happening with like a lot of other mainstream large cap altcoins coming up to all time high levels. We saw it with BNB fairly recently hitting above 800 bucks and pushing up to these levels again, record levels for this thing, pushing the all time highs we saw with xrp, which wasn't as recently, it was about, you know, a month or so ago. But this hit a new all time high, marking a monumental point. We saw it happen with Tron, which is another large market cap crypto. It had a bit of a weird wick, but for the most part pushing up to the all time highs. And so whether we're looking at this, you know, one way or another, we've seen a lot of the large market cap cryptos, you know, within the last month or so enter into this all time high resistance territory. And guess what, when we go up to levels like that, sometimes we hit them and we cool off. It has been almost nonstop since April and the markets have been climbing and climbing and climbing. And if you look at bitcoin, you know, it paints the picture pretty well. We've had one decent sized retracement since April. You know, we bottomed out. We had this guy right in here where we retraced about 12 and a half percent. And other than that like that was really it since April. And so now what we're getting here is a similar retracement and we're not even down the same as we were over there. So if we're going to drop 12.5% this time, it brings us back to around 108, maybe 109,000. Maybe we go a little bit lower, maybe we go a little bit higher, but structurally this is not anything that we haven't already seen before.
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In fact, you know, if we zoom out in the, the greater scheme of things, well, we've seen much bigger retracements, right? And you know, it's not uncommon for us to see a 30% retracement like there or a 30% retracement like here or over in here where we've seen 20 plus percent retracements or over here where we've seen a 20% retracement. And so they're all over the place. And so I say all this is because I, I'm not freaking out. I really don't think it's as scary as it is. And I think people are just a little bit more nervous now because they're seeing, oh, we hit all time highs, could this be the top? And that's like the whole fear that's kind of settling in right now. And I'll say, you know, as of right now, there's not any evidence of that. And I typically TiVo I showed you this I think about a week or two ago when we did another live stream. But I always like to look at like the monthly relative strength index on bitcoin and when I look at this, you know, it shows us in pretty simple fashion where bitcoin has topped out at and where it's bottomed out at in the past. And we're just not at that level yet. You know, we can see that. Hey, you know, we always bottom out around here around 40. We always top out around 90. Well, we're coming off this bottom, but we're not nearly close to the top yet, at least according to this point. And it's been, I would say, fairly accurate for every single market cycle since just about bitcoin's inception, you know, going all the way back to 2011 here. So, you know, I'm looking at a couple of these different data points over on the charts. Again, you know, solid resistance level for us to acknowledge and respect and we're going to see sell offs in any kind of a run. But the way that I kind of look at this over on bitcoin and stuff is like, hey, we might have a little bit more downside. I'm actually, you know, welcoming that. I'm not ruling it out. I'm not going to be one of those people that says bitcoin's never going to go down. We could have, we could very well have more downside here on both bitcoin and altcoins. And the truth of that is that any more downside on bitcoin would probably result in altcoins seeing 2 to 3x whatever bitcoin does. So if bitcoin sees another 4% to the downside, maybe altcoins see another 8 to 12% to the downside is what I mean by that because they typically move it around a 2 to x or a 2 to 3 x multiplier of whatever bitcoin does. But you know, at a high level here, you know, I think we resume, I think we retrace a little bit more, we bottom out and then I think we resume to the upside. And the one thing that I, that I've seen here, TiVo before I pass it off, is like people are already eager to buy the dip. Ethereum hit 4K. It immediately recovered to almost 4.4K. We saw similar things with like a handful of these different altcoins. Airdrump peaked down to a dollar and twenty cents. The next day it was up to a dollar and 40 cents. It was like a 13% candle or something like that, you know. And I've seen this happen with like a handful of other alts. Like you know, we mentioned bnb, this thing retraced over the last week or so and then it hit a new all time high yesterday and this morning before selling off. So the buyers are still very, very eager to be accumulating and I still think the big picture is fine.
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Love it. And keep, keep the chart up for me because I'm going to actually throw you a little curveball here. But let me tell you, Bren, the chat's bullish. CJE New all time. New all time. Highs in September. Noah. 145 in October. Fitz agrees. New all time high in September. Ed's bullish. We have got a new guy, William. Welcome, William. William's looking for a little altcoin advice. William, we can't give you personal financial advice. Just a couple guys talking crypto. But instead of all those altcoins, make sure you have a good bitcoin piece of the pie as well. Don't forget about bitcoin. But again, not personal financial advice. Obviously you can tell Brendan and I love us some bitcoin. Brendan, let me, let me ask you to Pull something up there. Can you pull up paler and give me a peak to trough of the paler pullback real quick? Because I think there's a better, there's a better discussion here. So Palantir, give me, give me the percentage. What do you see?
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25% in the last six trading days or eight days total.
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My God. My God. Is that a scam? Is that a, is that a meme coin? What is that? Is that an altcoin? Obviously, Palantir is one of the high flying stocks of this year and people love it. But I think there's again, we, we do crypto. This is a crypto show. But I think what we do here from time to time, especially if people are new here, we zoom out and we say, hey, we're not comparing apples to apples when we look at Trad 5, but there has been quite a little bit of a macro pullback of all these high flyers. Robinhood Palantir is the number one example. Palantir just did earnings about, yeah, seven, seven to eight days ago and then it was a huge pop because they blew it out of the water as they have, you know, apparently last, you know, basically year being one of the highest flying stocks. But there's a little bit of a risk off feel right now and, and kind of like we teed up earlier in the week when we talked about the Jackson Hole meeting for Fed pal, which is tomorrow. There's a little bit of a risk off, there's some people taking some profits. And again you're seeing the volatility in the tradfi market for the high flyers. You're seeing the volatility in the crypto markets which is always there anyway. And I'll end on this, Brandon, if you would have told me that, hey, in 20, in 2025, you're going to get a 20% pullback in Bitcoin, but it's going to still be above 100k. I think all of us would take that any day.
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Yeah, 100%. And you made a good point of like, there seems to be this idea that, oh, why is crypto not doing good right now? It's like, well, anything that's associated with the risk on basket or the risk on asset pool, that's anything from, you know, indices, equities, crypto, you name it. Like they're all taking hits right now. And you brought up Palantir, which is great, but like we're seeing this kind of across the board anything that is kind of considered a bit more risk on like a lot of These assets are selling off and you see this like across the equities market. So I'm not going to go through and show like every single individual equity but like you can see like double digit retracements in like a lot of these risk on equities and that whole side of things as well. So it's not like it's just crypto. Take heart in knowing that. It's just everything is kind of pulling back. And I guess you could say everything's almost been running non stop since April, which has been pretty nice.
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It's been amazing, it's been super fun. That's when our, that's when we started doing, you know, recently we started doing two episodes a week. But right around, yeah, that April, you know, into the spring and summer is when our episodes went from like 30, 35 minutes to every time we sat down it was an hour which has been super fun for us to do and give to you guys. And just while we're here, a quick pause. Guys, if you're new to the channel and you haven't subscribed yet, could you just take a look at the bottom right of the screen, you'll see our logo. Give us a subscribe please. Like the video as well. It helps us keep putting out all this free content. And if you see next to the subscribe button there's a bell. Make sure you click the bell because we go live a couple times a week and we don't want you to miss the alpha. And then I got some awesome stats around Ethereum. I'm about to bring up Brendan, but before we continue, this is going to be the end of our TA session. Brendan, unless you have anything else. Nope, good to go. So if you guys enjoyed that. Brendan obviously is an expert in ta. I put a link down below in the description if you, if you're interested, go down. It's the third link down there and it is access to Brendan's trading course. He doesn't have it open all the time so it's more of a waiting list and we'll let you know when that opens up. So if you're interested in doing that type of TA and trading with Brendan, course around it and being live with him multiple times a week like we do here for free. It's just more access to Brendan. Check it out. Third link below. But Brendan basically transitioning back into the rundown. All the volatility this week and we're kind of sitting there and I'm watching it go down. I don't love it. Right. I don't love it. I'm just like, I don't get it. What's the narrative? That's kind of why I brought that Palantir example up. I'm watching Palantir fall off the roof and I'm just like, well, I don't why Ethereum's going down. I thought Ethereum had the narrative right. I mean, Tom Lee's telling me it's going to 60,000. It's the future of finance. Why is it the Ethereum falling like a rock? And I just saw this tweet out by, by standard charter. I mean, this is, this is a couple days ago, everything's dropping and it's like ethereum will hit 12,000. 26, 18, 27, 25, 28, 29 per standard charter. And like, look at this, just my little tweet here. Why is everyone selling? What happened? What changed? And so I, I didn't know if you had any thoughts around that or if you thought my, my language was, was appropriate in the sense that don't get caught up in these quick volatility moves that could be tied, you know, more to the macro than the actual asset. Like, you got it. When you see these moves, the first thing I do is go try and get research or talk to you or listen. You know, obviously we put on the podcast, but it's like I try to do the research, so immediately I go to the team, I'm like, hey, is anybody seeing anything specifically around Ethereum, specifically around aerodrome, or is this some, just some macro pullback?
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Yeah, I think that that's exactly what it is. Is just a little bit of like a natural pullback after running so much. And when it comes to predictions, you know, the way that I always like to look at predictions and like what people are saying and what it can actually achieve is that people tend to overestimate in the short term and then, then on the opposite end, they tend to underestimate in the long term. So they overestimate the short term, underestimate the long term. And I think people are easy to lose sight of what can be and what will be. You know, I was trading Bitcoin, you know, well under 10k, but everyone's like, could you imagine when it hits 10k, then it did, and 100k wasn't even a thought. And people are like, I don't know about that. Seems a little far fetched. Maybe by 2040, maybe 2050. Well, you know, then we went from 10K to 25, 25 to 50, 50 to 100. Now we're above 100K still, even after all this stuff. And the same thing kind of goes for Ethereum. And I think with just a lot of crypto in general is that people were so concerned with the short term of what was possible that just a couple years later, you know, it's, it's well over 100k even after these pullbacks. And so I think they're right. You know, when, when we look back at the years to come, I'm actually more confident in those estimates than I would with people saying, what are we going to be at, you know, tomorrow morning? I think those are actually harder to do. Is those like, what are we going to be at tomorrow? Right, because, you know, you just never know anything can happen. And I think the one thing that's holding people back here is, well, a right, we've went on this run and we're cooling off just a little bit. It's natural, it happens, it's part of any market. But two, I think people are stressed out. I think people are pulling their hair out, getting gray hairs over what's going to happen at Jackson Hole and what in the world we're going to hear through J Pals Mike tomorrow because the odds were at like 90 something percent for a rate cut. Now they're falling in all sorts of uncertainty. We got the PPI data last week and that was a little bit more of a scare that skewed the odds back to the downside. And crypto has been desperately hoping for a rate cut because if you go and you look at, you know, the historical performance of crypto during rate cuts, it does really, really well while the Fed is cutting rates. And so crypto has been hoping for it. They told us, hey, we're going to get multiple rate cuts this year. You know, here we are now about to push into September, we're still not seeing any of them. And I don't want to rant about it too much TiVo, but you know, we've talked about it before. They've gone back and forth between, oh, we're forward looking, we're backward looking, we're looking forward for data to come, we're looking backwards on data that has already happened. And I think people are just frustrated because they feel as if, and I'm going to try to keep as much bias as I can out of this, but like, they feel as if it's. The Fed has become somewhat unpredictable or unreliable in the stance that like determines these things. And you know, there's just frustration there. You can hear my frustration from it because I'm a crypto investor, I'm a risk on asset investor. You know, we want to see rate cuts because we're, we're biased, right? Here's the deal. We want to make money, we want to see everything go up. So obviously we're going to be biased towards the, the end of rate cuts. And I'm not saying it's an easy decision because it's definitely a hard job. But, you know, people, when you look at like the past several years of what the expectation was going into the year, and I was doing a study on this, if you look at, I think I did 2022, 2023 and 2024. I remember 2023 and 2024 specifically. You know, the rate cuts were always under expectations of what most analysts and what the Fed, like, thought it was going to be. And then it was less, and then the next year it was less, and then the next year it was less. And, you know, here we are in 2025, and people have been going through this cycle where they feel like they're getting, like, baited by, you know, the baits on the hook, and then they're yanking it away right before our very eyes. And so people are just a little bit frustrated. And I think that that's the second half of what's happening with this price action is investors are like, all right, you know, we're going to take some risk off the table here because we're not completely sure what's going to happen.
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Yeah, it's, it's been, I mean, it's just been unprecedented times, obviously, since COVID and just a huge liquidity injection into the country and the world, really. That's why we bring up the M2 money supply so many times on this show. For those who have listened, you know, I think we'll, we'll kind of move on. But it just, sadly, it has gotten political too, right, Brendan? It's like, again, it's neither. Yeah, it's never Democrat or Republican here on this show at all. But you could, you could make arguments on both sides for how the kind of Fed narrative has played out over the last year. Plus, and we've talked about that on the show, so we're not going to rehash it, but it's just something you have to monitor and that, that's why we bring it up. And again, like you said, we're definitely biased towards wanting the cuts because traditionally that has helped crypto. But it'll be interesting and it tees this up easily for next week. Definitely tune in tomorrow. If you're on social media and you're getting your finance news, we'll be tuning in, but we're gonna, we're gonna let fedpal speak. It, it will be a clearing event, I think in some type of way. Right? It's a clearing event. Either it goes risk on, like, oh, it's dovish and we're risk on the market goes up, or it's a clearing event. So okay, well that was the bad news that the market was trying to digest and maybe there's a flush. So again, we don't have a crystal ball, we can't tell you. But just teeing up the fact that Friday is an interesting Fed Speak type of day at this conference. It's basically a world type stage for, for the Federal Reserve. So they'll be taking that. I think I did have one more stat on, on Ethereum we can do before we move on. And, and this is just kind of again, we macro, we zoom out, we let you know, let's zoom into the crypto markets, let's get back to the research. Because when I see Ethereum falling off a table and I'm like, what's wrong, Brendan? What's wrong is Ethereum, did it go offline? Is it shut down? Did Vitalik retire? What, what's going on? And nothing, right? So, and it's not a, it's not a nothing and it's not a crypto rundown. If we don't bring up Tom Lee. And so he throws out this and he goes, the last time we, we talked about on the show a couple weeks ago. So honestly, credit to us, credit to us for bringing up Ethereum had low availability on exchanges, right? The Ethereum volume was low on exchanges and I think we brought that up about two weeks ago. And so Tom comes out with this stat and says the last time that eth was $30. I'm sorry, the last time ETH balances were this low on exchanges, the last time that this happened, ETH was $30. $30 for an ETH and it went all the way to 1500. So again, I'm not saying, and I don't think Tom's necessarily saying that he's predicting those type of returns that quickly, but it's something homily is now the micro, I'm sorry, the microstrategy micro sailor of Ethereum, think we can both agree on that. And when he throws stuff like this, it, it is quite interesting.
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B
I mean he's clearly watching the Crypto rundown because he knows it's the best thing on earth.
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I see.
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B
No, all jokes aside, you know, you're right. I mean, man, we did talk about this, you know, at least a week or two ago. And exchange reserves are dropping for Ethereum, so the supply is getting more and more rare. Demand is ramping up. We just had the best Q3 ever for Ethereum. We also just had the biggest month in terms of ETF inflows. We broke the single daily record. We broke the single month record. We broke last year's records already. And there's increasing demand and a decreasing supply for Ethereum. And the more that it's used, the more inflation or the more deflationary it becomes, where it'll actually start burning more than is coming out. So, yeah, listen, I think there's going to be some big things here for Ethereum. And again, when we look at all this stuff, again, short term pain for long term gain. Listen, we're going to go through ups and downs. Historically, August and September are two of the worst months for Crypto. What we start seeing though is as we enter into October, as I already saw people in the chat box saying uptober, as we've nicknamed it, you know, we have October, we have November, we have the Santa Claus rally of December, and then we have three of the best months that follow, two of the worst months.
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So shout out to Noah, our friend Noah with the super chat. Thank you, Noah. Tom Lee, show us the way. He most certainly has many times before, especially with Bitcoin and a solid start to his Ethereum call. So it's, again, it's something that we like to follow and we will be. No, if you have a question, toss it in the chat. We'll try to get to it eventually. And thank you for that super chat, my friend. Just some quick hitters here. We've got, we've got Sui trading on Robin Hood. Brendan. I know, I know. Sue's somebody we've had on the pod before in the past. Something I've seen, you know, Rohit talk about in the newsletters and you guys discuss. It's probably been the coin of the week a couple times in the past. It's, it's, it's, it's a pretty big name, I think, to be added to Robin Hood. So again, just kind of the momentum's pretty exciting.
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B
Yeah. And it's cool to see them adding more and more features. Robinhood, clearly a friend. We've had him on the podcast, we've talked about him quite a Few times over here. They've also been adding some different kinds of, like, staking capabilities as well. So adding new altcoins, adding new crypto features. It's a growing trend that Robinhood, which started out as TradFi, has been doubling down on crypto and it's been doing, doing well. And we think we're going to see more of this from not only Robinhood, but of Tradfi as a whole.
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A
Yeah. And while we're kind of on this, this wasn't on the rundown, but we talked. I slacked you earlier. The Coinbase Dex launch, did you have any insight into that? Again, I know we didn't really prep it, but I went on the other day and saw that that launched and it looked really interesting.
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B
Yeah. So the way that this is going to work is that Coinbase announced that they are going to be essentially natively integrating Aerodrome, which is the primary decentralized exchange for the base ecosystem. And so this is this really cool, like, mutually beneficial relationship where obviously Coinbase, we all know them, the exchange, they built the base layer 2, and it quickly became one of the most popular layer twos, if not like the most popular layer two on Ethereum. And so Aerodrome said, hey, we're going to be one of the first, first builders. And what they built ON base, the layer 2, was a decentralized exchange and a hub where people can swap and trade and stake and provide liquidity and just support the overall base ecosystem. And so Coinbase saw this and said, well, hey, we only offer so many coins on here. What if we just partnered with Aerodrome, thank them for supporting our ecosystem and blowing it up so much, doing it a lot of good service. What if we partner with them and we integrate it so that people could just come through the Coinbase Exchange and have this ability built in to use Aerodrome? So instead of having to send your funds from Coinbase to a wallet, connect your wallet to the decentralized exchange, go through the whole rigmarole. What if you could just all do it inside of Coinbase itself? And that's kind of where this thought came from. And so instead of getting access to 200 different cryptos like you see on the screen now, well, now if you go through the Dex option, you can get access to millions of different cryptocurrencies. And so it's a really cool feature that supports Aerodrome. And listen, we've talked about them a lot. We even mentioned them already today. But.
- [29:32]
A
Yeah, we've had them on the pod, we had Aerodrome on the podcast a little bit ago, but it was when they first came out and we kind of eyed it up, you know, again, credit to us. Credit to us. But yeah, I think that's super exciting. Obviously. Again, a little call to action here. If you've been watching, we appreciate it. If you're new, subscribe, bottom right, hit the logo, give us a subscribe please. Like the video, it keeps us helping us do this stuff for free. And you want to subscribe and hit the bell because you want to be notified when we go live and you want to be notified for tutorials. So Brendan, Brian, Joe, the whole team, they've made some awesome tutorials. And Brennan and I were talking that we got to maybe get some Dex tutorials going here in the next couple weeks. So if you're interested in learning about how to use Coinbase to access millions. Millions, Brendan, of different cryptos, make sure you subscribe and stay up to date. But that, that's the theme of the bullishness continues, right? Suey's added to Robin Hood, Ethereum, Standard Chartered calls, or we're going to, you know, 30, 40, 000, whatever Tom Lee's telling you. The Ethereum exchange is low. The bullish momentum continues. And that's no different in the regulation space as well, which is what we're always keeping a ear to the ground for. And so I pulled, I pulled a clip friend of the program, Cynthia Loomis, who's our basically number one bitcoin politician, probably besides the president, United States, but she's the one that's always talking about the bills and pushing him forward. And she keeps talking about more market structure. It's going to be done this year. It's going to be done this year. So I thought it was. We haven't played clips in a while, so let's play it, play a clip here. As the bullish momentum continues for market structure down in Washington, D.C. around regulation.
- [31:13]
B
In the Senate on September 3rd, we are working market structure with the goal of having it out of committee, out of the Senate Banking Committee by the end of September. And then the Ag Committee, the Senate Ag Committee hopefully will work their part of it, the Commodity Futures Trading Commission, part of market structure through the month of October. And we will have market structure to the president's desk before the end of the year. I hope it's before Thanksgiving.
- [31:49]
A
So again, just bullish news. We're keeping the momentum going down in D.C. so when you see this negativity and the volatility, right. We're bringing you a standard chart. We're bringing You, Tom Lee, we're bringing you Cynthia Loomis. And then one final clip here that I pulled is Brian Armstrong from coinbase talking about $1 million prediction. Let's tune in, Brendan, and then we'll break it down.
- [32:09]
B
The rough idea I have in my.
- [32:10]
A
Head is like, we'll see a million dollar bitcoin by 2030. And there's high error bars around these things.
- [32:14]
B
But just to give you a couple.
- [32:16]
A
Of data points, right, it's like we're starting to see regulatory clarity emerge in the United States, which I think is a bellwether for the rest of the G20. Have the genius act passed now for stablecoins.
- [32:26]
B
But this market structure bill is being.
- [32:27]
A
Debated in the Senate. Fingers crossed something could happen by the end of this year that would be a huge milestone. The United States government now has a strategic bitcoin reserve. So that is, if you'd asked me five years ago, that would have been.
- [32:39]
B
Kind of like vision board and someone.
- [32:40]
A
Would have said, you're crazy. Like, the United States government's not going to officially hold bitcoin, but if they do that, which there's now an executive order to do, I think a bunch of other countries are going to do that. So I tee everybody up again. I'm super producer, I try to give you the Runway, I give you the volatility, I give you the charts with Brendan. We give you the news, we give you the standard chart of the eth price predictions, the Tom Lee, we give you the regulation, end of year regulation from sitting senators, congressmen, men and women, and then we give you price targets from Coinbase. It's all tied together. I just think this bullish narrative is still completely intact, Brendan, even even though there's been some volatility. So what, what's your takeaway from this? Couple clips?
- [33:21]
B
Yeah, I mean, I think, listen, people are very optimistic about the future. And again, all this short term crap does not affect what' going to happen in the years to come. It's very minor. We haven't seen anything that is like devastating. It's just all sentiment driven right now, right? It's all emotional, it's all sentiment. There's nothing fundamentally that has changed. In fact, the fundamentals and these catalysts, these driving factors continue to get increasingly more bullish and more bullish. And that's what I really want people to be paying attention to here. And like on top of this, you know, I know we saw Goldman Sachs, like they came out and they're like, hey, we see stablecoin coins and the whole stablecoin market reaching trillions of dollars in market cap. And we have it up on the screen right now for everyone that's watching on YouTube. But this is a big deal and we've seen other people talk about this as well. I think it was Secretary Treasury Scott Bessant said a couple months ago that he sees something similar where I forget the exact number. I think it was like 3.7 trillion or something like that. I'm sure we can maybe fact check that real fast. Evo but basically he came out and was like, hey, I could see this reaching a market cap of like a few trillion dollars within the next, you know, I forget what the timeline was, but maybe the next like five to ten years or something like that. And so there is this.
- [34:47]
A
You nailed it. 3, 3 point stable. Stablecoin market could reach 3.7 trillion by the end of the decade.
- [34:52]
B
Scott Bestin says in the next five years. So you know, we have to think, you know, we're talking about the Secretary treasury of the US we're talking about Goldman Sachs, clearly a household name. They're paying people, you know, God knows how much money to, to do this stuff and they're saying we see this as a really solid possibility. So you're hearing it from the banks, you're hearing it from the government, doesn't make it true by any means. But you know, we're also just kind of trying to push this idea of like we think that this can be a multi trillion dollar industry in and of stable coins. And so who's going to be the biggest beneficiary of that? Well, it's probably going to be some of these mainstream L1s. You know, you have to think Ethereum is probably number one on that list. I think it's hard to make an argument otherwise. And then anything that supports Ethereum as a layer one and as an ecosystem are probably going to benefit as well. And so there's some potential there. And the thing is like we're speculating now. We've done previous episodes on everyone who wants to integrate this. Like we have this a couple weeks back where we listed all the different banks, all the different asset managers, all these different companies that have all either filed or said that they want to file for some form of stablecoin integration, maybe even creating their own. And it's like all the big heavy hitters have already started doing this. The thing is like the integration itself hasn't even happened yet. So people are going to say, well why aren't we? Well, on Our way already. And it's like, well, they haven't even integrated it yet. Like we are literally getting in here before the race begins for stablecoins. It's like stablecoins exist but all these household names and asset managers and all these different people, they haven't even begun to start using them in the ways that they want. And so they're at this regulatory process beforehand and everyone's waiting to see, you know, what that's going to be like when we get there. So a lot of exciting things to come and I think again, it's something to keep an eye out on.
- [36:51]
A
It's like Bryce said last night he had a great tweet. He was like, we're still so early. The Clarity act hasn't passed yet. We're front running institutions. They should, they should have called it the Early Act. I love that. Yeah, exactly. They should have called it the Early Act. I thought that was great from our fearless leader, Bryce. But I guess moving on, a couple more quick hitters before your special presentation on. Not presentation, but just a little tutorial around the liquidity pools. You're going to teach me, teach everybody else. The Kraken. Kraken expands its tokenized X stocks to Tron and latest expansion of the backed partnership there. So this is just kind of an expansion on tokenized stocks, right?
- [37:35]
B
Yeah, it is, man. And they're doubling down on this. And we've seen a big push for tokenization in general. We saw Robinhood come out and talk about doing this. We've seen a lot of tokenized infrastructure on Ethereum. We've seen a big push on Solana as well with you know, X stocks. And now, you know, now they're expanding to Tron here, which we talked about at the very beginning of the episode. And so tokenization I think is like the second half of this and I think it fits into this Defi narrative. But you're seeing a huge push in like AI stablecoins and tokenization. And those are like the big areas where like everyone is just salivating over these and what the potential of them could be in 5, 10, 15 years from now. And there's just a lot of exciting things that are happening. And because of this, I mean it feels like crypto companies with all the mainstream adoption and attention and sentiment shifting like the IPOs are coming out of the woodworks. TiVo, have you seen this?
- [38:38]
A
Yeah, it's the IPO parade, just in general. I mean, obviously we've covered Circle, another tech one. Figma went crazy bullish Went crazy. And they are getting a little air taken out of them. Kind of along the same lines of the Palantir trade that we highlighted earlier. Just some of these high flyers have got to come back down to earth a little bit. But there is a high appetite for IPOs right now in general. And specifically all the crypto ones have absolutely crushed. So the IPO parade is starting. Kraken. Kraken's looking to get in it. Obviously, we covered Gemini. Gemini filed paperwork for it. Grayscale here. I got the Grayscale article. Grayscale's filing, Bitgoes filing. I mean, this is, it's. It's literally, like I said, it is. The, the IPO parade is, is on, I think, for tradfi. I think that's part of kind of the play. Like, okay, we're holding interest rates, we're going to cut. There's going to be more liquidity. It's time to go public. Yeah, I think again, these announcements just show it's more of the same people. The, the, the appetite for crypto and tradfi is super high. And I think part of the clip we played with Senator Loomis is, is the regulation and the more clarity we have. Again, I don't think that's specific to one specific company ipo, but there's just still a lot of these investment firms that they want exposure to the alpha, but they can't go and buy Solana, they can't go and buy Ethereum, or even some of them can't even go and buy Bitcoin yet. But that's why the Bitcoin ETFs have unlocked so much liquidity. And the same thing will be true for Altcoins. You just kind of need the framework. But if anything has showed us, and I've mentioned this on the show before, this is one of my kind of hotter takes and personal opinions is like, altcoin season is already here in some areas. You just got to know where to look. And some of that altcoin season has happened with these crypto IPOs. And just look at Robinhood stock. We talk about that all the time. Nauseating. But, like, look at that stock if you can. You could consider that almost like, because it's, it's got exposure to crypto. Right. Same thing with Circle. It's exposure. Bullish that rips super higher exposure to crypto. So the, the appetite is there and, and it's gonna, it's gonna keep going. Any, Any final thoughts to add to that?
- [40:48]
B
No, I, I mean, I think you're right. You know, the. The crypto market has matured a lot. There's a lot of different ways to get exposure now. There's a lot of different ways to make money, and we're seeing a lot. I'd say most sectors do really well, but you have to be a little bit more picky because the sector has grown so much now. There's more of. I don't know, there's more of, like, a clear line between the winners and losers. And the crypto industry isn't so small, where there's so few options, where in a bull market, everything does well now it's grown enough to where like, hey, just because we're in a bull market and everything's doing pretty good doesn't mean every single crypto, every single project, every single company is going to see equal gains.
- [41:31]
A
Love it. The. The last point here is with all the bullishness going on and all the, the marching forward in the industry, you would think that, hey, it's time to educate. It's time to listen to the rundown. It's time to subscribe to Bryce, to Brendan, and march forward with the crypto future. That's true, I'd say, for almost all of the crypto world and for the tradfi industry, it's all true, except for one person, one name, and that's Vanguard folks. I mean, good Lord, Vanguard coming out and suggesting a 70% bond and 30% stock portfolio for the next decade. I mean, I thought it was a troll, but I went and looked it up and apparently it's true. I mean, this is the same Vanguard folks that doesn't let you buy the Bitcoin ETFs, but you can buy MicroStrategy. Make that make sense to me. And they haven't changed that position in a year. Plus, with all the bullishness going on and all the IPOs that they're, I guess you're allowed to buy, right on their platform. You can go buy Circle, you can go buy Bullish, you can go buy MicroStrategy. Brendan, what is. What is. Like, I. I can't believe they didn't put out a disclaimer that this isn't personal financial advice, much less a joke. 70% bond, 30% stock.
- [42:50]
B
When you showed me this yesterday, I had to do a double check. And I remember, you know, we were in a call with some of the other team, and I was laughing hysterically when I saw that they were suggesting 70% bond exposure. I was flat. I still am. I'm reading it again and I'm flabbergasted, like borderline speechless. 70% bond exposure is crazy. Crazy. How much do you want to grow your portfolio? That is the I want to match inflation growth. That is the I don't want to retire path, like a 70% bond exposure. I've never heard of anyone ever having life changing experiences and going anywhere off of this. Like you'd be, I feel like you would be better off doing a million different strategies. And it's not even like it's risk free because then there's going to be parts where like, there's going to be times where like you're borderline, not outpacing inflation and other things and like, I don't know, I think the risk of going that risk off is like, to me that's like higher risk. Right? Because you're so risk off that you're almost not gaining anything. And is that not a higher risk than, than any. Anyway, I'm going to rant about it but like, yeah, and here's the deal. They still won't add Bitcoin, they still won't add crypto and they still won't do a lot of this stuff. But I find it a bit, I mean, dare I say I find it a bit hypocritical that people can get exposure and access to all these different crypto related companies and exchanges and Treasuries, but they can't trade the underlying assets even though their clientele clearly wants it and they're losing market share to the other asset managers that are offering it. It's hard to say and it's hard to find a reason as to why they wouldn't do this under modern regulation and under modern adoption. And when you look at the excess that BlackRock has had, that Fidelity that has had, that all these other financial institutions that have launched bitcoin and Ethereum ETFs, like spot ETFs. I mean it has become the most successful ETFs in history. It has brought in so much money. We're talking about billions and billions of dollars in assets into their management system. And there's just, there has yet to be like the downside. And so when you look at Vanguard, it's like, I mean we had a running joke here. We have it in the notes still, which is like if you don't want to make money, listen, listen to Vanguard. Anyway, I, I hate on this because again, I'm going to be biased here. I like to accept the fact when I'm biased. But like if if you're going to tell people 70% expand bond exposure and then not allow them to have exposure to bitcoin, I don't know. I draw my line in the same.
- [45:32]
A
And you're giving them, and you're giving them the levered ETFs. It's like you get leveraged. But like, yeah, it's crazy. It's crazy. It's crazy. But yeah, that, that, that made, that literally made me laugh. I mean, it's like, it's, it's doubling down. It's like, oh, no, you can't get the Bitcoin ETF, which is up, you know, 100, whatever. And then. But oh, yeah, please like suggest 70 bond with our bond department. Get out of here. Vanguard. There was something so funny. We did, we did. Ls in the chat. It was. Ls in the chat for Vanguard. The chat was going crazy. That was so funny. Shout out to the chat. Ls in the chat for Vanguard. But that, that's our news for today. I mean, what's that?
- [46:11]
B
I was gonna say, could you imagine being an investor over there and like, coming back to your portfolio and being like, all right, you know, what have we done in the last two years? It's like, okay, well, we're, we're 70 in bonds. So we missed the Kobe recovery, we missed the 2022 recovery, 2023 recovery. We missed the tariff recovery. We missed all these, like, monumental buy the dip opportunities because we're in bonds. And then. Yeah, anyway. Yeah. Could you imagine just going back as an investor and being like, what.
- [46:39]
A
Imagine if, if you were, imagine if you were like trying to. You had all your money in Vanguard and you had all your money in Vanguard and the Bitcoin ETFs came out and you're too scared to buy regular Bitcoin, but you heard the ETFs came out and you're like, oh, I'd really like to buy the Bitcoin ETFs and get a little bit of exposure. But you only have your money, your money in, in Vanguard and you, they, you learn that they're not going to offer it and it's not, it's not happening. And you're just kind of bummed and you're like, all right, I guess, well, maybe I should move my money out and, or a portion of it to go figure out how to get it. And you don't do that. And then you just see bitcoin rip. Like it has. Like, that's got to be devastating. So hopefully those people have been listening to the rundown and, and made the move. But that, that's a sad kind of thought too, of like, not giving people access, like democratizing access to finance for all. Like, let them make their own decision. It's fine if you want to be risk off and you only offer traditional stocks not tied to Bitcoin, but then you got to take out MicroStrategy. And it's definitely not fair to be offering 3x Tesla bulls leverage and Vix XXX contracts with 3x leverage of the Vix. That's crazy. Like, your whole thesis of not being able to. Not offering it to people to protect them is crazy. It's crazy.
- [47:55]
B
Yeah, yeah. It just seems like a double standard. And listen, you know, I'm sure Vanguard's a fantastic company to work at. They're gigantic. You know, I'm not saying the company's bad, but we listen, we're biased. We want them to be more consistent. We want them to be more friendly to crypto and, you know, we just want to see them do better at the end of the day. So that's the big takeaway.
- [48:16]
A
Couldn't agree more. And again, an exciting kind of time for your tutorial, Brendan, to give us kind of your. Your insight into liquidity pools. But before I hand it off to you, just one more time for everybody. We got. We have a hundred people been watching the entire time, which is awesome. We appreciate you guys. And if you haven't yet, I only see 34 likes on the video. Please give this video a like, it means a lot to us. It helps us grow the channel. Subscribe if you haven't. And with that said, we really appreciate you tuning in. And here's, here's kind of what everybody was tuned in for that joined especially from the email. Brendan, you got some hidden strategies that can help you make money daily in crypto via liquidity pools. So can you kind of tee us up and give us a tutorial and we can all do a little learning together?
- [48:59]
B
Yeah, 100%, man. So as we get into liquidity pools here, I want to just talk to the audience and kind of walk them through what this is because. Because liquidity pools are something that I have done for years and years now. And it's a really cool opportunity where you can earn, you know, semi passive income in the crypto space for cryptos that you might potentially already hold. And so the way that this works is that most of us are familiar with market makers, right? They go and they earn a percentage of the fees, right? If you go and you trade on Coinbase, they charge a fee, right? And they get to collect that fee because you're trading on their exchange. The same goes for Kraken, the same goes for all these different exchanges. Well, the cool thing is that with most modern decentralized exchanges, you can actually be a part of that process. So you can collect a percentage of the fees that are generated on any specific coin pairing, on most specific coin pairings that you're trading. So if you want to go on, you know, uni swap and collect a portion of the fees for people who trade Ethereum to usdc, you can do that. If you want to go on the radium and you want to collect a portion of the fees for people who are swapping in between Solana and usdc, you can do that. And so that's what liquidity pools are, is that you can go connect a wallet to these decentralized exchanges and then you can contribute liquidity to specific coin pairings. Now, the more you contribute, the bigger portion of the pool that you get and the more that you're going to be earning, right? So if people are going and they're constantly transacting on radium, which is like one of, if not the most popular decks on Solana, then you can be earning a portion of all those transactions as they're happening over and over and over again. And so that's what liquid liquidity provision is, and it's a way for you to go and contribute liquidity. So I just wanted to briefly walk people through this, and we're going to have a lot more information on this in just a second. But as we go through a screen share, let me just also connect a wallet real fast. But as we throw this up onto the screen, that one will do. And we take a look at this. You know, you can just see that if you go from swap to liquidity and you click on this, there's going to be all these different liquidity pools that are here. Now, there's two kinds of liquidity pools. There are standard and there are concentrated pools. Standard pools are saying, just no matter where the price is, no matter what's going on, I am always going to be contributing liquidity. However, you're going to typically be getting a lower reward for standard concentrated is saying, I'm going to concentrate where I'm contributing liquidity into a concentrated range. The benefit of this is that you're typically your funds are going to be getting used as liquidity more and more because it's concentrated into a specific zone. And so you're going to be generating, typically speaking, more fees because you're concentrating where your liquidity is going to be contributed to. So standards everywhere concentrated is exactly how it sounds. Where it's concentrated in into a specific range, you typically earn more in terms of a concentrated pool. The only downside is that if it goes outside of that bracket that you set saying I'm only going to contribute liquidity on Solana between 150 and 200 bucks. If it goes outside of that, then what happens is you have to redo your liquidity pool. So you have to remove your liquidity, restart it back up and you incur a bit of impermanent loss, which is a whole nother factor as well. So if we're just scrolling through this like let's just go to everything, right? Radium. I'm sure most of us are familiar with what radium is or probably used it. There's over, you know, well over $2.5 billion in TVL and we can see over the last 24 hours they've done over $1.5 billion in volume. So if we have the opportunity to capitalize on this, that's a pretty good, you know, idea, right? So let's just go through here real fast and let's just see like, you know, what are some of these bigger pools? And obviously some of the big ones are going to be like Solana, USDC and so on and so forth. So if we go and let's just do like the top ones by fees, like what pools are actually generating us the most, the most. And so what I like to do, and one of my favorite ones is Solana to usdc. We keep it simple here and there's a couple different versions of this. And so as we go through, we can see like, hey, you know, inside this liquidity pool there's $114 million. It's doing about $112 million a day in 24 hour volume. And over the last 24 hours there's been almost $45,000 in fees generated that we can partake in. So if I'm going to go ahead and like open this up, for example, you know, we can click on something like this, go to deposit and set up our own liquidity pool or join this liquidity pool. And the cool thing about these concentrated pools is again, I get to set my specific range. So I get to use a little bit of technical analysis if I want to, to say, hey, I only want to be contributing liquidity, you know, within this area so maybe I want to zoom in a little bit more and say, hey, the bottom end of this is I want to contribute liquidity at like around 170 bucks. To the top end, I want to be contributing liquidity up to 210 bucks. And I can do that over here. Alternatively, I can just type in the numbers rather than just dragging it around. So if I want to contribute liquidity, I can say, hey, I want to contribute liquidity on Solana, 170 bucks at the low end, 211 bucks at the high end. And I can just type that in down here as well. So now what it's going to do is it's going to give me an estimated epr. So if I want to come in here, you know, I'm just going to put a filler of like, let's just say I'm going to do this with one Solana. What it's going to do here is it's going to say, hey, your estimated apr and this is variable. It's not, you know, permanent. So this will change and I'll explain why that's the case in a second. But it's going to say, hey, you're going to earn around 150% a year in terms of your APR. And the reason why this changes is because again, it's based off of trading volume. During periods where there's more trading, more volume, more stuff going on, you're going to be generating more fees. Right? Because there's more volume in transactions happening. During times when there is less volume, this number will go down. So this is, this can fluctuate. It is a variable apr, but during times of really hot activity, you're going to be earning more. During times of less activity, you will be earning a little bit less. But we can go and we can go back to this and look at all these different liquidity options. So if I want to do this for Solana to usdc, I can do that as an option. If I want to do this with, you know, Solana to all these different meme coins, I can do that as an option. If I want to do this for a coin that I really like. I know some people like to maybe do this with radium. Well, I can just search and say, hey, maybe I want to contribute liquidity for radium even on the radium decentralized exchange. Well, I can type radium and it's going to come right up and it's going to give me a bunch of different options. You know, here I have some that are going to be generating 20%. And I have other ones in different pools. And the cool thing is I get to go in here and actually choose which pool I want. And so there's lots of different options here for what we can do, right? Not only, like, can we do it for specific coins and have all these different pairings that we can contribute liquidity for, but then there's also options within that and we can choose like the APR of like, what best suits us. So what I'll say here is that, you know, you will see like a lot of meme coins in here. And I don't want people to like freak out and see, oh my goodness, this says, you know, let's just like click on this one for example, and click deposit. It's gonna say like the APR was around, like, you know, some crazy number down here, like 200,000% or something. The reason for this, and I want to, like, again, be careful with people's expectations, is because this is probably a meme coin that's super illiquid. It's not doing a lot. And these are typically like the most risky ones to get into. So when people come over for liquidity pools and they see these things saying, oh, you could generate 160,000% APR, well, you have to consider like, is this actually a reliable coin? Is it going to be inflating at a really, really high rate? Is this coin going to even be around by the end of the year? Is it going to be depreciating really fast and things like that, right? So just because there's a high APR doesn't always mean that it's a good decision. And I like to err on the side of like, caution and safety and sticking to more well known pools or pairings. And you can always do that by like vetting by the size of the liquidity pool or the actual volume that's being done. So if you just want to look at like some of the biggest liquidity pools over here, like, you'll see that there are some that are like a little bit more familiar, some more like normalized meme coins. And then there's also just like normal coins where you have like Solana to Muse, Solana to usdc, Solana to Fart coin. We have WIF here, usdc, Tron, Bitcoin, usdc, stuff like that. And so there are some more like normalized memes and all coins as well. But as a general rule of thumb, I think the big question here is like, well, why liquidity pools? And as you can see you know, if we're doing this with just like a normal pool on Solana, for example, where we could be earning around or again, give or take, it's going to fluctuate, you know, maybe 50 APR or 100 APR. The reason why people would want to do this is because that's much better than staking, right? With staking you might get several percent apr. It's going to be very hands off. This is going to be a little bit different where no matter what the market conditions are, this is really, really useful in choppy markets because if prices are going up and down and fluctuating and going sideways or even just trending in a direction, well, you're able to pocket money as people are trading these things. So I'll say the only situation where liquidity pools are not ideal is the one where there is one sided like asymmetric volatility. So say that you were to get in at 200 bucks and over the next month it just goes either asymmetrically one way or the other, up or down. That's the only time where liquidity pools really aren't great because you incur something called impermanent loss. And that's when it really doesn't work well. Again is if it just goes absolutely parabolic in either the up or the down direction. That's when they don't tend to work the best in any other market condition where things are not just moving in a single shot direction. They work really well, especially during choppy periods or any kind of semi consistent periods, any trends. Look, people like to use liquidity pools because they can just constantly be earning fees and earning more and more of the tokens that they already want to be a part of. Now the final thing I'll say here, TiVo, is that I use this word called impermanent loss. And a lot of people aren't familiar with what that is. Well, when we come into a liquidity pool, typically the way that it works is that people contribute an even amount of liquidity, right? They're going to come in and say I want to come in with $1,000 of Solana and $1,000 worth of USDC. So we call that a 5050 pairing because you have an equal amount of Solana and usdc. Well, what happens when the price of Solana moves? Well, USDC isn't going to move because it's a stablecoin. Solana is a different story. It's not a stable coin. Solana will fluctuate in value. So if the price of Solana goes up, it's going to try to keep you at a semi even amount in distribution between how much you have in the liquidity pool and how much it's all worth. So if Solana is becoming more expensive, it's going to be subtracting Solana away and giving you and rebalancing you into more usdc. So if the price of Solana doubles in this theoretical scenario, then you'd be getting more USDC and less Solana. Right, Because Solana is going up in value. And so the pool is trying to redistribute your tokens and say, well, we need to keep this somewhat balanced. And because Solana is appreciating, you need to have more USDC and less Solana to have this balanced liquidity pool position. And so that's what impermanent loss is, is it? Saying as things move away from where you started your liquidity pool position, it's going to be rebalancing you and there can be a little bit in there called impermanent loss, which is like a slight loss that you can incur based off of that rebalancing in that movement. Now, unless it's usually something really, really extreme, it's not something that is that bad. And the only people who get really hurt by impermanent loss are the people who either go in and they set up a liquidity pool range or like super, super tight, where it's plus or minus like a couple percent. And they do this because if we go and we were to type this in over here, all of a sudden my goes up to 826%. People are going to say, oh my goodness, if I make it a plus or minus 1 or 2% range, then all of a sudden I can make 900%. And they get really greedy with that. And then they zoom out and they say, well, what if it's plus or minus, you know, you know, 18% or 20% or something like this, which is oops and I messed it up. You know, you get the picture. You know, what if we change this to being a more broad range? Well, then the number goes down and people don't like that. So sometimes people get greedy and they make their ranges too small or they get in right before there's just like a gigantic move in one direction. And that gets people a little bit frustrated. But no, liquidity pools are this really question Brennan from.
- [63:28]
A
Yeah, from Mrs. Mrs. C. Lee around the ranges. I. Sorry to cut you off, but like go back to the ranges there where you're Saying, don't be greedy. Don't be greedy and go too small versus going too wide. How often do you update those? Was her question from Mrs. Seeley. How often are you updating those ranges? Is there a time where maybe you go a little smaller or you always keep it super wide? And I guess the second part is like, all right, we understand, we don't want to go too risky. We want a nice wide range. Do you set the range and just leave it, or is this something kind of like a trade or with a stop loss almost that we need to monitor?
- [64:01]
B
So the way that I like to do this is I always like to pull up a chart. I think, you know, you don't need some technical analysis expertise to do this stuff. But if I'm going to be doing a liquidity pool in Seoul usdc, I'll pull up the chart and I'll say, okay, well, like, what is Seoul been within since the start of this year? So going back to February, you can see that, hey, on the high end, Seoul's been around. Yeah, around 200ish bucks, right? Maybe a little bit more. We peaked up a little bit higher here. But for the most part, since the start of this year, we are just above 200 bucks on the high end. And on the low end, we are, for the most part, around 120 bucks. So there's been a little bit of time periods where we were outside of this range. We can probably look at another chart to make this a little bit more clear. But there's a little bit of time where we were outside of this range right around here. But for the most part, we are trading inside of here. So what I would do is I would look at this and say, okay, well, maybe I'll put my top bracket, you know, a little bit above 200 bucks. I'll put my bottom bracket around, you know, 120 bucks. And that's where price has been. And so the longer that your liquidity pool is running, the better. And that's where I think a lot of people go wrong, is that they try to set these things up and leave them running for like a couple of minutes, a couple hours, maybe a couple of days. And the real benefit of them comes when you have them up for weeks or months at a time because then you're having, you know, what would likely be very minor and permanent loss if you're not having to constantly rebalance and you're just generating fees over an extended period of time with very little downtime. And even if it goes outside of your bracket or outside of your range, it does not automatically force you out. So what I actually had happen here recently is I had one of mine on like one of these dips where it went below my liquidity pool range position. So what I did was say, I'm not too worried I'm going to leave my liquidity pools open. And guess what? It came back up into my range and I started making money again. I started collecting fees. Now I'm not going to collect fees if it's outside of my range, but I'm not forced to exit the position either. So my liquidity pool came back into my range, it started printing money again. And that's the way that it works. And so I think that answered the question TiVo of like, there is this healthy balance between being too small and too big. And I certainly believe that. And if at any point you don't like your current position and you don't like your sizing or whatever, you withdraw it and you set up a new liquidity pool. And at any point you can come in here and, you know, you can go to your positions and, you know, earn your rewards. You can withdraw your rewards and they go right to your wallet. So, yeah, it's a pretty cool way, you know, especially when the market's chopping around. You know, this is a strategy for like while the markets are chopping around to earn a decent reward over here. And so my favorite ones to use, and I want to clarify here, some of my favorite liquidity pools to use are the ones that are like pushed by radium. You'll see over here there's like occasionally like a tag. I think I saw one at the top where it was not being like fully pushed by radium. And yeah, so here it says, for instance, that there's weekly rewards in BLB token, which is its own thing. And so it'll tell you like, hey, some of these rewards will be BLB token. So it's like something to watch out for. You just don't. And it's not that big of a deal at the end of the day, but I just want to make sure everyone's aware. So if you go to like this pool, you're going to be getting your weekly rewards in radium token, which I think people would probably prefer. But over here, people get their weekly rewards in these BLB tokens, which I'm not even fully sure what that is, which is usually a little bit of a red flag. Yeah, I mean that listen, that's liquidity pools in a nutshell is that you can go and you get to become the market maker, you get to earn fees on people trading. And you can do this on just about any decentralized exchange. Uni swap, radium aerodrome, pancake swap, you name it, you can do this.
- [68:16]
A
Wow. I mean, just an awesome breakdown of that. Thank you so much. I definitely learned a lot. That was kind of. I know I, uh, we've talked about it before, and I've been kind of in the conversation around liquidity pools, but never kind of gone the walkthrough with you. So, I mean, that was fantastic. Literally, we still have our concurrent viewers up high around, you know, 100 people. So 100 definitely Crypt Nation fans. Plus the replay is gonna, you know, definitely get to see that and appreciate it. So if you're interested in liquidity pools, guys, Brendan just gave you a great intro to it. Again, I. I put a link down below. So if you go down in the description, click See more. The first link is Brendan's income strategy for liquidity pools. And you know, he gave you a little tidbit there, something to get you started to keep learning. And again, it's not personal financial advice, but it's. We're here to educate. And so if liquidity pools and kind of figuring out that. That strategy to get some income for your crypto go down, hit the description, that first link, Brendan's income strategy. Click the link to learn more. He's got a whole deep dive course that will, you know, give you that times, you know, basically a hundred of the information that you need to get. So just one final time down there, check the link and if you're interested, you can learn more. We'll wrap it up with some questions if. Thank you, Kevin. Amazing information. Why don't we ask the chat? You guys have any questions? This has been an awesome attendance, an awesome chat, an awesome rundown. We got, of course, Fitz, you're welcome for the info. We got like two minutes here, two minutes for some questions. Overall, I think Brendan crushed that presentation. Again, it's all about. I think the most thing I took away was like, again, figuring out in choppy markets where you can make your money, right? You're thinking asymmetrical trades to the upside. The downside, whether you're buying protection or going long. It sounds like an interesting time to kind of check out liquidity pools if you think that the markets might be a little choppy but the. The chat is not super active. No super questions. Here we go. What can we possibly. What can we do passively to earn. Well, Mrs. Lee, we just already went over that. Liquidity pools is the answer.
- [70:21]
B
Well, yeah, I'll say. You know, there's a couple different ways to earn passive income in crypto. You have staking, you have lending and you have liquidity pools. And I think those are the three big sources. With lending, listen, you can go and you can earn, you know, several percent. Same thing with staking, you can go and you can earn several percent. The difference is that with liquidity pools, you're not looking at earning, you know, listen, 5% a year, 10% a year, you know, you're going and trying to earn 5% a month, right. And so the goal is that, you know, you're going to be, you're going to have the potential to earn like 10 times as much as you would doing like a staking or a lending contract. And so that, that's like the big thing. So, you know, I think the original question was like, what can we do to passively earn? You have staking, you have lending, and you have liquidity pools. Liquidity pools are going to be the most active of the three because, you know, who knows? For me it's like someone also asked like, how often do I redo these ranges? For me it's every couple months, right. I want to have my pools running for at least several months, you know, at least several weeks. Typically several months at a time is ideal. And if they go longer than that, great. But I'd say.
- [71:39]
A
Ethereum versus Solana. Any take there? Ethereum liquidity pools versus Solana, Yes.
- [71:44]
B
So this is something we talk about like really deep in the liquidity pool program is that different blockchains and different exchanges are better for different people. We'll give a spoiler alert just because you all are tuning in live and you know, spoiler alert here. This is something that we definitely talk about inside of it, but. And if you want to learn more, go down to the, to the link and click on it. But Ethereum is typically better for liquidity pools contribution. If you're a whale, if you have lots of money and we break this down like what the exact numbers are, but if you have a lot of money, you know, tens or hundreds of thousands, I like the low end of that. So anywhere from, you know, probably mid to high ten thousands up to hundreds or millions or hundreds of thousands or millions of dollars, Ethereum is the better place for liquidity provision. They have bigger pools, bigger sizing and it makes a little bit more sense for anyone that's outside of that. You know, maybe you want to come into liquidity pool contribution with hundreds of dollars, thousands of dollars, tens of thousands of dollars. Then you can have all these other decentralized exchanges which are probably going to be the better choice because you're going to be able to earn more on a lot of these other ones. So if you're using radium, if you're using pancake swap, if you're using aerodrome, if you're using all these different ones, you're typically going to be getting a higher reward. However, you're not going to be able to go in there as a whale and come in with like a million bucks onto one of these things. So there is a little bit of nuance that you need to know of, like this is the place based off of whatever your criteria is.
- [73:24]
A
Dude, awesome stuff, awesome information. You have carried the show for the last 25 plus minutes. So let me end the show. Let me take that off your back. Guys. We appreciate you watching what an episode. An hour, 10 minutes, please. My last call to action. Please subscribe. Give the video a like if you enjoyed it. It helps us keep growing the channel. The subscribe buttons either on the bottom or the bottom right of the screen and then underneath the subscribe button, if you're watching, there's the description. Click the description. We got some links for there liquidity pools. You just learned about them. If you're interested in Brendan's course, check out the liquidity pools link. We do the trading all the time on here with Ta. We got the link to his trading course. If you're interested in that. If that's not what you're interested in, we got a free book for you. If you haven't read our book, it's completely free. That link down there is below and then you can get our entire crypto portfolio and get into the community and the newsletter for literally just a dollar. The links support the show. That's why I keep bringing them up. We really appreciate you guys listening. We can't wait to keep giving you more free content. We'll be back next week. We're going to recap the price action. We're going to recap chair pal from Jackson Hole. And we're just going to keep chugging along here as the crypto markets continue to move basically higher from what we've seen recently. And it's been fun to be with you. So thank you guys so much for tuning in and we're going to see you guys at the same place, same time next week. Bye everybody. If you're alignment in charge of keeping the lights on. Granger understands that you go to great lengths and sometimes heights to ensure the power is always flowing.
- [75:04]
B
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- [75:06]
A
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- [75:10]
B
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- [75:12]
A
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