Ticking Big Ben

Chart of the Day

The Ethereum network has undergone seven significant upgrades since its inception. What makes the imminent London Upgrade unique is that it introduces “rent control” measures on gas fees via EIP 1559, a fundamental change to the fee structure that renders the asset scarcer and more reflective to fluctuations of on-chain fundamentals. In hindsight, the past seven upgrades are often viewed as catalysts for upside price actions, as most have led to favorable performances (and more often than not, over an extended timeframe). However, the immediate impact of historical upgrades can’t be decoupled from strong bullish momentum experienced across markets, and London is no exception. Ether’s great run-up in the week leading up to the London Upgrade suggests that the market trades on expectations, which may precede any real changes in fundamentals and sometimes eclipse common sense, so tread carefully. 

Talk of the Town

Where does Gary stand on cryptocurrencies? The U.S. Securities and Exchange Commission (SEC) chair and known crypto advocate Gary Gensler, whose video lectures on blockchain garnered millions of views online, said publicly that he seeks to cooperate with Congress on matters related to regulating crypto exchanges, and is contemplating a robust oversight regime. His speech on Tuesday laid out the SEC’s regulatory priorities in clear terms, which will grant regulators greater authorities to monitor the crypto ecosystem with focuses on crypto trading, DeFi, stablecoins and more.