Podcast Summary
This podcast episode features a comprehensive discussion between Jason Choi, co-founder of Tangent, and his guest “S” from Dragonfly Capital. The conversation covers a wide range of topics in the crypto space, including NFTs, alternative L1s, L2s, derivative dexes, AI, gambling, DeFi, oracles, and memes. The hosts delve into the valuation of Chainlink, the future of exchanges like Binance, the dominance of Blur in the NFT market, and the potential of data availability layers (DALs) in the growth of L2s. They also discuss the technical aspects of blockchain scalability, the evolution of developer preferences, and the potential of decentralized physical infrastructure networks (DPINs).
Key Takeaways
Chainlink’s Overvaluation and the Future of Exchanges
- Chainlink’s Valuation: The hosts express skepticism about the high valuation of Chainlink, which trades at a $14 billion valuation despite not generating enough revenue to justify it. They question the supply and liquidity dynamics of the “Link Marines.”
- Future of Exchanges: The hosts ponder the future of exchanges like Binance following its $4 billion fine. They discuss whether the industry will move towards more regulated structures or if another semi-regulated exchange will take its place.
Blur’s Dominance in the NFT Market and the Launch of Blast
- Blur’s Dominance: Blur is recognized for its dominance in NFT exchange volume, capturing about 60% of the market, and for its innovative approach to incentivizing liquidity providers rather than wash traders.
- Blast’s Launch: The hosts discuss the launch of Blur’s new Layer Two, Blast, which promises to build a Perpetual Dex for market makers to long and short NFTs, allowing them to hedge their inventory.
Understanding Data Availability Layers (DALs)
- Role of DALs: The hosts explain the role of DALs in rollups, where execution is done off-chain, but the data for transactions is posted onto Ethereum, allowing for validation of state transitions.
- Celestia’s Bullish Case: Celestia, a DAL for rollups, is highlighted as having a significant bullish case due to its structural and technical advantages over Ethereum as a DAL.
Decentralized Physical Infrastructure Networks (DPINs) and Oracles
- Hive Mapper: The hosts discuss Hive Mapper, a project that uses blockchain to coordinate a network of physical infrastructure for live mapping data.
- Pyth Network: The hosts discuss Pyth Network, an oracle that provides price feeds and has seen success in non-EVM chains like Solana, Aptos, and Sui.
Meme Coins and Their Cultural Significance
- Meme Coins: The hosts discuss the cultural significance of meme coins, acknowledging their initial bias against them as mere tools for speculation but recognizing their popularity among newcomers to the crypto space.
- Meme Land: A venture bet on a project called Meme Land is discussed, which, despite marketing itself as a meme coin, is working on legitimate social products to introduce non-crypto natives to the space.
Sentiment Analysis
- Bullish: The hosts express bullish sentiment on several topics, including the dominance of Blur in the NFT market, the potential of data availability layers (DALs) in the growth of L2s, and the rapid growth of Pyth, an oracle with a smaller market share but a strong team. They also express excitement about Hive Mapper’s potential and the potential of Meme Land to use its social reach to funnel new users into the crypto space.
- Bearish: The hosts express bearish sentiment on the high valuation of Chainlink, which they believe is not justified by its revenue. They also express skepticism about the accuracy of Robit’s reported revenues due to the potential manipulation of treasury token burns.
- Neutral: The hosts express a neutral sentiment on several topics, including the future of exchanges like Binance following its $4 billion fine, the evolution of developer preferences, and the integrity of crypto projects. They also express a neutral sentiment on the cultural significance of meme coins, acknowledging their popularity among newcomers to the crypto space but maintaining their skepticism about their utility.
