The Ether Machine, Blob usage going up and more - The Daily Gwei Refuel #844 - Ethereum Updates

Dan discusses Ethereum's upcoming 10th birthday on July 30, 2025, and his participation in the ETH Sydney event. The current price of ETH is $3,900, with speculation it may reach $4,000 or set a new all-time high by the anniversary. Joseph Chalum has joined Sharp Link as co-CEO, emphasizing Ethereum's role in global finance and the importance of stablecoins and tokenized assets. Dan anticipates that Sharp Link will expand its initiatives within the Ethereum ecosystem, collaborating with products like Linea and Metamask.

The Ether Machine, led by Andrew Keys, has committed over $1.5 billion to manage ETH, reflecting a trend of increased ETH usage in staking and DeFi. Both the Ether Machine and Sharp Link are seen as long-term investments, with expectations of significant capital influx into ETH. However, acquiring large amounts of ETH is challenging due to rising prices, with the projected cost to acquire 5% of the ETH supply around $23 billion. The podcast highlights the implications of price volatility, noting that significant price increases would escalate the capital needed for large acquisitions.

The current buy pressure is driving ETH's price upward, with demand outpacing supply. This trend has persisted for months, leading to a potential repricing of ETH. Treasury companies are actively purchasing and staking ETH, contributing to the Ethereum ecosystem's liquidity through the "Ethereum liquidity flywheel." These companies are also investing in blue-chip tokens and NFTs, enhancing ETH's role in the global financial landscape.

The recent performance of ETH ETFs has been notable, with July 2025 seeing inflows surpassing the previous year's total. Demand is crucial, as market dynamics, including the rise of Layer 2 solutions and institutional interest, are driving significant inflows into ETH ETFs. If ETH prices exceed $4,100, it could lead to a bullish trend as the market enters a price discovery phase. Despite some selling pressure from ETH holders taking profits, strong demand is counterbalancing these sales.

The speaker anticipates a detailed discussion on Ethereum due to significant technological advancements. They reference a tweet highlighting a paradigm shift in the perception of ETH, emphasizing its value narrative. Recent developments have positioned ETH as a serious institutional-grade asset with yield potential. The speaker believes ETH's acceptance as a valuable asset is just beginning and has the potential to reshape global finance.

They discuss ETH's price history, noting a significant drop from around $4,100 in January to $1,400 in April, followed by a rebound to nearly $4,000. The speaker argues that ETH's current valuation is based on perceived value rather than transaction fees, highlighting its recovery as notable. They point out that ETH has gained value against the US dollar, Bitcoin, and other cryptocurrencies, indicating that the market is valuing ETH as a critical asset for the future.

The Ethereum gas limit has increased to 45 million, with expectations to reach 100 million by Q1 next year and potentially 300 million by Q2. Ongoing discussions about EPBS (Ethereum Proposer/Builder Separation) raise concerns regarding the "free option problem." Current discussions also include GlamsterDAM and potential Ethereum Improvement Proposals (EIPs), with the introduction of EIP 7928, the Block Level Access List (BALS), supported by many for its potential benefits.

The conversation highlights the potential impact of FOSSIL on the Ethereum network. Blob occupancy has reached 75% for the first time since Pectra, indicating a rise in blob usage, with further increases expected as updates approach. The speaker expresses a cautious approach to trust in the crypto industry, suggesting that many individuals could be potential scammers until proven otherwise. They conclude by encouraging engagement with the community.