My seat at the back of the airplane suddenly became more valuable than any first-class seat up front…

Last month, I was on a flight to Austin, Texas, to attend Consensus. It’s one of the largest crypto conferences in the world.

Nearly 15,000 people attended the conference, and there were more than 400 speakers.

It’s the mecca of the cryptosphere.

During the flight, I found myself sitting next to an industry insider.

I can’t drop names here. But he’s one of the roughly 300 Ethereum core developers.

Right now, Ethereum is the second-largest cryptocurrency in the world, with a market cap of $223 billion.

My seatmate is responsible for ensuring Ethereum’s nearly half-a-trillion-dollar ecosystem – including its own market cap and all of the stablecoins and altcoins that live on its network – runs smoothly.

To be an Ethereum “core developer” isn’t just some honorary title, either. You have to make “significant” contributions to the protocol.

These are the guys and gals who design the network architecture… write the code… and develop solutions to any problems. Without them, much of what we see in the crypto space wouldn’t be possible.

Over the next 90 minutes, I grilled him nonstop about the latest trends in Ethereum… and what he’s excited about that’s yet to come.

That’s why I say my back-seat ticket on that flight was more valuable than a first-class ticket. The information I gleaned from this individual was priceless.

It’s like getting lucky and sitting next to the general manager of your favorite professional sports teams. Imagine the kind of insights he could tell you, like which players he’s seeking to draft or trade.

Not only did I have the great fortune of sitting next to one of the most influential men in the Ethereum community on the flight to Consensus…

But at the conference, I also interviewed a top Brazilian lawyer helping to establish regulations for crypto in her country… and heard from the chief legal officer of Coinbase – the largest crypto exchange in the U.S. – on its battles with regulators.

Today, I’ll share the insights I gleaned from these individuals, and what they mean for crypto moving forward…

Ethereum Continues to Expand

The most highly anticipated event in crypto over the past 12 months was Ethereum’s switch from proof-of-work (PoW) to proof-of-stake (PoS).

We first brought this major catalyst to your attention back in December 2022. And we’ve covered it in detail every month since.

The network completed the transition in March after its highly anticipated Shanghai upgrade.

This upgrade is significant because it allows ETH stakers to access their funds.

[Staking in crypto is the process of locking up your tokens to help process transactions and secure the network. In return, you receive more crypto. It’s similar to earning a stock dividend or a bond yield.]

Prior to this upgrade, staking ETH was a one-way road. You could only deposit assets, and it was unknown how long it would take before you could access your funds.

Some ETH stakers haven’t had access to their funds since December 2020.

Before the upgrade, there were some concerns that allowing token holders to unstake their ETH would create selling pressure… But as I pointed out in February, this wouldn’t be the case. In fact, we’d see the opposite.

Since then, ETH is up 13%. And over 2 million ETH valued at $4 billion has flooded into staking since the upgrade.

With the biggest upgrade in Ethereum’s history now behind it… I asked the core developer I met on the flight what he thinks it means for the asset going forward.

Like us, he believes the upgrade will attract new investors because token holders can now safely earn income simply by staking their Ethereum.

Today, there’s roughly 21 million ETH staked… And they’re earning roughly 4–6%.

But during periods of high network activity – like we saw in the days surrounding the FTX exchange collapse and the banking crisis in March – this yield climbed above 10%.

That’s because users are willing to tip network validators more to give them priority and execute their transactions faster.

When the bull market resumes, we can expect network activity to explode higher – like it did from 2020-2021.

That would translate to roughly 2.1 million in ETH paid to stakers annually. Or $4.2 billion in income if Ethereum remains at around $2,000.

However, we believe Ethereum could soar to $25,000 during the next bull market. That’s more than a 5x increase from its previous all-time high.

If so, we could see over $50 billion annually paid to Ethereum stakers.

So it’s reassuring that one of Ethereum’s core developers is on the same page as we are about the network’s income potential.

Countries Are Working on New Regulations

As I walked from booth to booth at the largest crypto conference, it was clear that regulation is at the top of everyone’s mind.

In the past, we’ve told you we don’t believe the U.S. government can or will ban crypto. And we stand strong in that belief.

But over the short term, crypto companies are finding it difficult to navigate the regulatory landscape in the United States. And some are looking to move their operations elsewhere.

One jurisdiction companies are considering is Brazil.

At Consensus, I had the opportunity to meet with a lawyer from Brazil. She works for one of the largest law firms in the country, which is helping companies navigate the regulatory landscape there.

During lunch, she noted that the attitude from regulators is much different in Brazil than the United States. She couldn’t believe how difficult regulators are making it for the industry to operate here.

When I asked her what she sees in Brazil, she told me it’s almost the complete opposite end of the spectrum there compared to the United States. Brazil is pushing forward and hoping to become a hot spot for crypto companies.

In fact, Brazil recently signed into law a regulatory framework that will give crypto exchanges the guidance they need to operate.

These guidelines include transparency and risk-management requirements. Exchanges will also need to follow personal data protection laws. And they’ll need to distinguish between user and company assets.

By putting these guidelines in place and regulating exchanges, users will have more confidence in engaging in the crypto space.

It’s not perfect – and Brazil has more work to do – but the country is providing guidelines for companies to operate under.

This is something we’ve yet to see from regulators here in the U.S. And that’s why some of the biggest names in the space have one foot out the door.

The lawyer I met from Brazil told me her country – and so many others, like China and many in Europe – are salivating at the opportunity they have right now with the U.S. dragging its feet.

Now, I know some of you may think Brazil is small potatoes. But it’s the world’s ninth-largest economy by gross domestic product (GDP). And it’s one of the top markets in crypto.

Nearly half of Brazilian consumers have made at least one crypto-related transaction in the past year, according to Mastercard.

And some of the biggest names in the space already operate in Brazil:

  • Binance recently opened two new offices in Brazil. And it’s partnered with Mastercard to launch a prepaid crypto card in the country.

  • Coinbase recently integrated with Pix, a popular instant payment platform created and managed by the central bank of Brazil.

Brazil isn’t the only country looking to strike at this opportunity. In fact, the world’s second- and third-largest economies are creating friendlier climates for crypto.

On June 1, the Hong Kong Securities and Futures Commission officially allowed crypto exchanges in the territory to start servicing retail investors.

China’s financial system has about $19.47 trillion in assets under management.

The website CoinGeek said this new rule “will attract capital, particularly from China, by making Hong Kong a possible home for digital asset exchanges to operate legally.”

And China isn’t alone.

Last month, the European Union passed a new crypto licensing regime, Markets in Crypto-Assets (MiCA). Its goal is to establish a regulatory framework for crypto companies to operate under in the EU.

The framework will provide compliance rules for crypto exchanges, stablecoin issuers, and custodial services.

These rules aim to enhance clarity for consumers and put safeguards in place to protect user assets.

This is a major win for crypto considering the EU is the third-largest economy in the world, with a combined GDP of $16 trillion.

MiCA took another step closer to becoming law last month with all 27 finance ministers from the 27 member states voting in favor of the bill. We can expect these rules to go into effect over the next 18 months.

Combined, the GDP of China and the EU is $36 trillion. That’s compared to $26 trillion in the United States.

So even if the U.S. continues its antagonistic regulatory approach to crypto, there are greener pastures elsewhere.

An Even Bigger Development Ahead

According to Daily editor Teeka Tiwari, there’s a new development brewing beneath the surface in crypto that’s even more impactful than China’s re-entry into crypto or Ethereum’s recent upgrade to proof-of-stake.

This development is set to drive crypto user growth to 5 billion by 2030.

Yet as this new development drives crypto firmly into the mainstream, the crypto market will begin a maturing process as we move out of the current bear market.

The market will start to trade more like the stock market… It will become less volatile…

And the days where you can get in on a foundational crypto project that will shape our future for pennies on the dollar… Well, they’ll be gone forever.

On Wednesday, June 7, at 8 p.m. ET, Teeka will explain the details of this new crypto development… as well as a special sub-sector of cryptos that’s springing out of it.

These cryptos are set to lead crypto’s next bull run… handing those who get in now the possibility of securing the biggest gains of any cryptos.

Plus, when you become a VIP attendee for the event, you can claim two bonus reports:

  • BIG T’s SECRET: How to Make an Extra $1.4 Million in the Next Crypto Bull Market.

  • This 33-Cent Pick Will Ride AI and “Crypto’s New Development” to Breathtaking Gains.

You can automatically reserve your seat for the event right here.


Houston Molnar
Analyst, Palm Beach Daily