Scale – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Sat, 23 Aug 2025 01:39:29 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.7 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 Scale – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 Protocol Update 002 – Scale Blobs https://earlybirdsinvest.com/protocol-update-002-scale-blobs/ https://earlybirdsinvest.com/protocol-update-002-scale-blobs/#respond Sat, 23 Aug 2025 01:39:29 +0000 https://earlybirdsinvest.com/protocol-update-002-scale-blobs/

Following up from Protocol Update 001, we’d like to introduce our approach to blob scaling. The L1 serves as a robust foundation for L2 systems to scale Ethereum, and a necessary component of secure L2 solutions is data availability provided by the L1. Data availability ensures that updates L2s make back to the L1 can be verified by anyone. Blobs are the unit of data availability in the protocol today, so scaling the blob count per block is a key requirement to usher in a wave of L2 adoption for use cases like real-time payments, DeFi, social media, gaming, and AI/agentic applications.

Our work is structured as a series of incremental changes to Ethereum’s blob architecture. To accelerate our rate of scaling, we are expanding from a “fork-centric” philosophy to also ship incremental optimizations in non-breaking ways as they become ready. Thus, we have the following projects tied to both network upgrades, but also the periods in between (“interfork”).

TL;DR

  • Fusaka introduces PeerDAS, a new data architecture that allows blob scaling beyond today’s throughput levels from 6 blobs/block up to 48 blobs/block
  • Blob Parameter Only (BPO) forks gradually increase mainnet blob count, bolstered by incremental peer-to-peer bandwidth optimizations
  • Advanced networking techniques planned for Glamsterdam iterate on the PeerDAS design to scale even further
  • Mempool sharding preserves Ethereum’s values as data continues to scale
  • Research into the next generation of DAS unlocks an evolution in secure DA scaling

PeerDAS in Fusaka

The first milestone is the delivery of PeerDAS in the upcoming Fusaka network upgrade. PeerDAS introduces data availability sampling (DAS), where an individual node only downloads a subset of the blob data in a given block. Together with randomized sampling per node, computational load is bounded, even as the total blob count increases. As nodes no longer need to download all the blobs in a block, we can raise the blob count without a commensurate increase in node requirements.

Fusaka is expected later this year with implementations in all Ethereum clients. Extensive testing has been performed on development networks (“devnets”) including non-finality scenarios and adversarial “data withholding” conditions. At this point in the R&D process, we continue to harden existing devnets and plan deployment to testnets and mainnet. Barnabas Busa is leading the charge here to ensure smooth progression through the final stages of the upgrade pipeline.

PeerDAS v1.x

We have two prongs of non-consensus changes in our strategy to progressively scale blobs in between the Fusaka and Glamsterdam upgrades: BPOs and bandwidth optimizations. These are additive as better bandwidth utilization lets us leverage resources towards higher throughput.

BPO

PeerDAS introduced in Fusaka sets the stage for a theoretical increase of 8x from the throughput of Ethereum today (i.e. ~64 KB/s to ~512 KB/s). Rather than immediately jump to this theoretical max at the time of Fusaka deployment, core developers have elected for a more gradual increase via “blob parameter only” hard forks. This mechanism lets core developers program automatic increases in blob capacity over time, keeping us on a continuous growth trajectory. Once programmed, BPOs don’t require any manual intervention to activate. In between steps, we’ll monitor the network and react to scaling bottlenecks that may only present themselves on mainnet, paving the way for the next increase. Barnabas Busa along with others on the EF PandaOps team work closely with the client teams to distill the correct schedule to achieve the 8x scaling from today.

Bandwidth optimizations

There’s a lot we can do to more efficiently use bandwidth on the network. Raúl Kripalani along with Marco Munizaga are leading efforts on this network engineering work. A particularly promising optimization is the introduction of “cell-level messaging” which allows nodes to more intelligently query for parts of the samples introduced in PeerDAS. This change reduces redundant communication on the network, and the bandwidth savings can, in turn, be dedicated to the safe provisioning of even more blob capacity. No consensus or execution protocol changes are needed to unlock this milestone, so they can be shipped interfork before Glamsterdam next year.

PeerDAS v2

This project refers to the next generation of the PeerDAS design that affords even more scale while capitalizing on the bandwidth savings realized from pipelining introduced by EIP-7732 (scheduled for inclusion in Glamsterdam). There are further refinements to cell-level messaging and data reconstruction techniques that let nodes more flexibly sample individual parts of blobs so that the core idea of DAS can be expressed in full. These gains, along with the pipelining benefits that allow for more efficient utilization of the time between blocks, set us up to scale beyond the limits of imminent PeerDAS designs. There are many moving pieces, and exact numbers need to be calibrated to both performance of implementations and mainnet analysis as the blob count is actually scaled in a production setting, but this work should give us the final multiples on DA throughput before needing to seek alternative designs.

This batch of updates will go into the Glamsterdam upgrade expected in the middle of 2026. Alex Stokes and Raúl Kripalani are coordinating the R&D here to ensure we can keep scaling blob throughput.

Blobpool scaling

While the benefits of scaling are clear, we must do so while preserving Ethereum’s core values. One of these directly relevant to blob scaling is censorship resistance. The mempool serves as a decentralized network for blob inclusion and directly provides censorship resistance in the face of a centralized builder network producing most blocks on Ethereum. While instances of censorship have improved over time, it is tantamount to the scaling strategy to also ensure the blob mempool scales with it.

Csaba Kiraly is leading work here so we can maintain this critical resource. Current implementations support near-term blob throughput with vigorous research into the best ways to scale the mempool as we get to higher levels unlocked with Fusaka and beyond.

Future of DA

Beyond future iterations of PeerDAS, we have a variety of research directions to keep scaling DA while retaining the security properties of Ethereum that make it unique. Proposals generally fall under the moniker FullDAS with several flavors under active investigation. A key component of these proposals all involve innovations in peer-to-peer networking that allow for a highly diverse set of participants to shard an increasing number of samples while remaining fault tolerant to adversarial actors. Work such as Robust Distributed Arrays formalizes this notion. Other considerations include low-latency inclusion, censorship resistance, and evolutions of the blob fee market to make it easier to get blobs onchain.

Research here is stewarded by Francesco D’Amato and is very active – reach out if you’d like to collaborate!

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Protocol Update 001 – Scale L1 https://earlybirdsinvest.com/protocol-update-001-scale-l1/ https://earlybirdsinvest.com/protocol-update-001-scale-l1/#respond Tue, 05 Aug 2025 19:27:19 +0000 https://earlybirdsinvest.com/protocol-update-001-scale-l1/

In June, we introduced Protocol, reorganizing the Ethereum Foundation’s research & development teams to better align on our current strategic goals, Scale L1, Scale Blobs, and Improve UX without compromising on our commitment to Ethereum’s security and hardness.

Over the coming weeks, we’ll publish updates on each work stream, covering their ongoing progress, new initiatives, open questions and opportunities for collaboration. We start today with Scale L1 — expect follow-ups about Scale Blobs and Improve UX soon!

TL;DR

  • Marius van der Wijden joined Ansgar Dietrichs and Tim Beiko to co-lead Scale L1
  • Mainnet’s gas limit increased to 45M post-Berlinterop, a first step on the road to 100M gas and beyond 
  • All major execution layer clients shipped Pre-Merge History Expiry, significantly reducing node disk usage
  • Block-Level Access Lists (BALs) are being considered as a headliner for Glamsterdam
  • Compute & state benchmarking initiatives are underway to better manage EVM resource pricing and performance bottlenecks
  • The path to zkEVM real-time proving is becoming more concrete, with the prototyping of a ZK-based attester client underway
  • We are still hiring a Performance Engineering Lead: applications close Aug 10

Geth-ing Serious About L1 Scaling

Scaling Ethereum requires reconciling ambitious designs with engineering pragmatism. To help us achieve this, we’ve appointed Marius van der Wijden as co-lead for Scale L1 alongside Ansgar Dietrichs and Tim Beiko.

Marius’s extensive engineering experience on Geth combined with his commitment to protocol security make him a perfect fit to align our scaling strategy with Ethereum’s constraints.

Together, Ansgar, Marius and Tim have defined a set of key initiatives that will enable us to Scale L1 as quickly as possible. 

Towards a 100M Mainnet Gas Limit

Our immediate goal is safely scaling Ethereum’s mainnet gas limit to 100M per block. Parithosh Jayanthi, closely supported by Nethermind’s PerfNet team, is leading our work getting through each incremental increase.

At the recent Berlinterop event, client teams significantly improved their worst-case performance benchmarks, enabling the recent increase to 45M gas — a first step on the path toward 100M gas and beyond!

Additionally, client hardening has become an integral part of the 100M Gas initiative. The Pectra upgrade rollout highlighted several issues caused by network instability. It is paramount to ensure clients remain robust as throughput increases, even if the network temporarily loses finality.

History Expiry

The History Expiry project, led by Matt Garnett, reduces Ethereum nodes’ historical data footprint. The recent deployment of Partial History Expiry removed pre-Merge historical data, saving full nodes approximately 300–500 GB of disk space. This ensures they can run comfortably with a 2TB disk.

Building on this, we’re now developing Rolling History Expiry, which will continuously prune historical data beyond a fixed retention period. This will keep nodes’ storage needs manageable, even as Ethereum scales.

Block-Level Access Lists

Block-Level Access Lists (BALs), championed by Toni Wahrstaetter, are emerging as a leading candidate for inclusion in the Glamsterdam upgrade. BALs provide several critical benefits:

  • Enable parallel transaction execution within blocks.
  • Facilitate parallel computation of state roots, significantly speeding up block processing.
  • Allow preloading of required state at the start of block execution, optimizing disk access patterns.
  • Improve overall node sync efficiency, benefiting new and archival nodes.

These improvements collectively enhance Ethereum’s capacity to reliably handle higher gas limits and faster block processing.

Benchmarking & Pricing

An ongoing challenge in scaling Ethereum is aligning the gas costs of EVM operations with their computational overhead. The performance of worst-case edge cases currently limits network throughput.

By improving benchmarking infrastructure and repricing operations that can’t be optimized by clients, we can make block execution times more consistent. If we close the gap between the worst and average case blocks, we can then raise the gas limit commensurately.

Ansgar Dietrichs leads efforts focused on targeted benchmarking and engineering interventions, informed directly by PerfNet’s comprehensive benchmarking, to identify and resolve compute-heavy bottlenecks. Significant progress has already been made post-Berlinterop, particularly in managing worst-case compute scenarios.

In parallel, Carlos Pérez spearheads Bloatnet: an initiative aimed at benchmarking and optimizing state performance. This involves testing node performance under conditions with state sizes double the current mainnet and gas limits reaching 100–150M, to directly inform both repricings and client optimizations.

Both of these efforts will inform Glamsterdam EIP proposals to homogenize resource costs across operations, enabling further L1 scaling.

zkEVM Attester Client

Today, Ethereum nodes execute all transactions in a block when receiving it. This is computationally expensive. To reduce this computational cost, Ethereum clients could instead verify a zk proof of the block’s execution. To enable this, proofs of the block must be produced in real time, which we are getting closer and closer to.

Kevaundray Wedderburn is leading work on a zkEVM attester client that assumes we have real time proofs and uses them to fulfill its validator duties.

Once the prototype is ready for mainnet, it will roll out as an optional verification mechanism. We expect a small group of nodes to adopt this over the next year, allowing us to build confidence in its robustness and security.

After this, Ethereum nodes can gradually transition to zk-based validation, with it eventually becoming the default. At that point, L1’s gas limit could increase substantially — even go beast mode!

RPC Performance & Hiring

As throughput increases, different node types (execution, consensus, RPC) face distinct challenges. RPC nodes specifically encounter heightened pressure as they serve extensive historical and real-time state requests.

Internally, the EF’s Geth and PandaOps teams are actively researching optimal configurations for different node types. We expect the importance of this to increase in the coming years and want to grow our expertise in this domain.

To that end, we’re actively hiring for a Performance Engineering Lead. Applications close August 10. If you’re as excited as us about scaling the L1, we’d love to hear from you!

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Silicon Valley Startup Says It Can Turn Mercury Into Gold on ‘Massive Scale’ https://earlybirdsinvest.com/silicon-valley-startup-says-it-can-turn-mercury-into-gold-on-massive-scale/ https://earlybirdsinvest.com/silicon-valley-startup-says-it-can-turn-mercury-into-gold-on-massive-scale/#respond Mon, 28 Jul 2025 02:05:37 +0000 https://earlybirdsinvest.com/silicon-valley-startup-says-it-can-turn-mercury-into-gold-on-massive-scale/

A Silicon Valley startup says it has discovered the pinnacle of alchemy – converting a relatively common metal into gold.

Marathon Fusion is proposing a process that uses nuclear fusion to turn mercury into gold, reports the Economic Times.

In a scientific paper, the firms says it’s possible to use high-energy neutrons from a fusion reactor to bombard mercury-198, turning it into mercury-197, which then decays into stable gold-197 over a matter of days.

The company says the process can be done at scale, but for now it remains theoretical.

“Our approach is economically irresistible, practically feasible, and massively scalable, in contrast to prior attempts. An entirely new golden age begins now.”

The paper, which has not yet been peer reviewed, claims the gold can be created as a byproduct at nuclear power stations “without any compromise to fuel self-sufficiency or power output.”

The method promises to create 5,000 kilograms of gold annually using a one-gigawatt fusion power plant.

Marathon Fusion was co-founded by a former SpaceX engineer and a Breakthrough Energy Fellow.

It has raised over $10.9 million in funding, including a $5.9 million seed round in July 2024 led by 1517 Fund and Anglo American, with additional support from the U.S. Department of Energy’s ARPA-E, Breakthrough Energy Fellows, Übermorgen Ventures and the Shared Future Fund.

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Everclear Secures Strategic Investment From NEAR Foundation to Scale Cross-Chain Clearing https://earlybirdsinvest.com/everclear-secures-strategic-investment-from-near-foundation-to-scale-cross-chain-clearing/ https://earlybirdsinvest.com/everclear-secures-strategic-investment-from-near-foundation-to-scale-cross-chain-clearing/#respond Wed, 23 Jul 2025 13:14:31 +0000 https://earlybirdsinvest.com/everclear-secures-strategic-investment-from-near-foundation-to-scale-cross-chain-clearing/

July 23rd, 2025 – San Francisco, California


Today, Everclear, the cross-chain clearing and settlement protocol for digital assets, announced a strategic investment and partnership with the NEAR Foundation.

This partnership entails a long-term commitment by both teams to advance cross-chain clearance and settlement with NEAR’s tech.

NEAR Foundation’s capital deployment includes provision of solver capital aimed at unlocking liquidity to meet the growing demand for Everclear’s offerings and a multi-faceted strategic investment, signaling support for the CLEAR community.

Powering Intents-Based Interoperability

The cross-chain intents market is seeing significant momentum with new chains coming in and a stablecoin explosion–transaction fees are already often as low as 0.01% and settlement times are often seconds, which creates a perfect set-up for further growth.

Everclear, which recently surpassed $1B in total transaction volume, introduces a DeFi primitive that enables clear and net-off bi-directional cross-chain liquidity flows at zero cost. To further strengthen its robust clearing and netting infrastructure, Everclear will integrate with the NEAR technology stack and scale the amount of available liquidity in the protocol with additional resources.

Illia Polosukhin, NEAR co-founder, stated: “Unifying liquidity for both human and AI users is a key mission for NEAR and the Intents ecosystem. We’re happy that Everclear will utilize NEAR Intents for cross-chain clearing and settlement amidst the proliferation of stablecoins, chains, and new asset types in the market today – we see a great opportunity in our work together.”“Partnering with the NEAR Foundation enables Everclear to scale liquidity and target billions in monthly volume over the next 12 months,” said Dima Khanarin, Everclear Foundation CEO. “With hundreds of stablecoins and new appchains like Robinhood launching, the cross-chain clearing market for digital assets is poised to surpass $1Trillion.” 

Everclear’s Accelerating Momentum

Since March 2025, Everclear has:

  • Achieved 111% growth in Q2, >50x growth from January
  • Surpassed $1B in total transaction volume
  • Expanded to 23 supported chains, including Solana
  • Onboarded top DeFi protocols such as Li.Fi and Across 

About Everclear

Everclear is the first cross-chain clearing and settlement protocol, enabling efficient movement of liquidity across blockchain networks. Like Visa and SWIFT in traditional finance, Everclear coordinates liquidity flows across decentralized ecosystems—eliminating fragmentation and unlocking a more connected digital asset economy.

Everclear is backed by NEAR Foundation, Pantera Capital, Polychain, 1kx, Hashed, ConsenSys, and the Ethereum Foundation.

X: https://x.com/everclearorg

Website: https://www.everclear.org/

About NEAR Protocol 

NEAR Foundation is the blockchain for AI. A high-performance, AI-native platform built to power the next generation of decentralized applications and intelligent agents. It provides the infrastructure AI needs to transact, operate, and interact across Web2 and Web3. NEAR combines three core elements: User-Owned AI, which ensures agents act in users’ best interests; Intents and Chain Abstraction, which eliminate blockchain complexity for seamless, goal-driven transactions across chains; and a sharded blockchain architecture that delivers the scalability, speed, and low-cost execution needed for real-world AI and Web3 use. This integrated stack makes NEAR the foundation for building secure, user-owned, AI-native applications at internet scale.

Contact

CEO
Dima Khanarin
ops@connext.network

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How to connect Bitaxe if you are running a public pool instance in Umbrel and using tail scale https://earlybirdsinvest.com/how-to-connect-bitaxe-if-you-are-running-a-public-pool-instance-in-umbrel-and-using-tail-scale/ https://earlybirdsinvest.com/how-to-connect-bitaxe-if-you-are-running-a-public-pool-instance-in-umbrel-and-using-tail-scale/#respond Sat, 19 Jul 2025 18:25:17 +0000 https://earlybirdsinvest.com/how-to-connect-bitaxe-if-you-are-running-a-public-pool-instance-in-umbrel-and-using-tail-scale/

To answer this question, if you already have an umbrella running tail scales, it’s mostly a fight. Once you have installed the tail scale and the Bitcoin node is fully synced, you can start Bitaxe and Public-Pool.

The documentation seems pretty sparse right now, but if you follow it, it seems to work well. To run a public pool from umbrella, install that add-on and then use “umbrel.local” in the public pool settings as the address of the TCP+Stratum user, port number: 2018, and Bitcoin node (which can be found from Umbrel’s Lightning Node add-on app by selecting “Deposit” in the “Bitcoin Wallet” section). You can use a different Bitcoin address for improved security. It provides the easiest “start” way to minify to your node’s address.

Once this is done, make sure your settings have been changed to use the BTC address of your umbrella. Note that finding Axeos webpage is as easy as checking what the new IP address is to see the Bitaxe output, as after updating your Bitaxe WiFi settings and using your own WiFi network, you will get a new IP address assigned by your router or DHCP server. Enter that IP address in your web browser and the Axeos web page will load immediately. After updating the BTC address of the Axeos web page, save it and restart Bitaxe.

Now this does not mean you are earning the SAT you are mining in your pool – that only happens if you are lucky enough in a pool of Bitaxe rigs to hit the solution that earns 3.125 BTC every 10 minutes. Due to the advantages of incremental SATS, it is necessary to minify directly into a centralized mine pool. But that means that if you add proof of work to the larger Bitcoin community and other large-scale mining operations go down temporarily or permanently, we are all contributing to the decentralized value of Bitcoin by continuing to find solutions and enjoy rewards. Additionally, the added hash power makes it increasingly difficult for state governments to take more than 51% of their total hash power.

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Enhanced sanctions compliance: Building for scale and trust https://earlybirdsinvest.com/enhanced-sanctions-compliance-building-for-scale-and-trust/ https://earlybirdsinvest.com/enhanced-sanctions-compliance-building-for-scale-and-trust/#respond Sun, 06 Jul 2025 14:42:22 +0000 https://earlybirdsinvest.com/enhanced-sanctions-compliance-building-for-scale-and-trust/

At Kraken, we are committed to building a secure and reliable platform for our clients. Over the past few years, we have significantly strengthened our global compliance framework. We invest deeply in the people, processes and systems that keep our platform safe.

We recently reached an important milestone on that journey. This concludes a multi-year effort to strengthen the sanctions compliance program across the board. This achievement reflects not only the continued engagement with regulators (such as finalizing commitments over the past few years), but also the continued advances in Kraken’s approach to risk, surveillance and operational excellence.

As part of ongoing work with US regulators, Kraken recently completed its third final certification of the US Treasury Department’s Office of Foreign Assets Control (OFAC) (OFAC).

Companywide efforts towards common goals

What began as an initiative to enhance sanctions control is a comprehensive effort to build one of the industry’s most robust, scalable and future compliance programs.

What Kraken will enhance compliance:

  • GEOIP Firewall and VPN Screening
    A sophisticated tool that actively restricts unauthorized access based on geographical and network indicators.
  • A comprehensive screening
    End-to-end product, client, and transaction-level screening ensures real-time risk detection.
  • Over 100 Embedded Internal Controls
    Automatic checks and balances built into every tier of Kraken’s infrastructure.
  • Upgraded policies, procedures, and processes
    An overview redesign of how compliance is approached across teams and workflows.
  • Strict risk assessment, auditing, training
    Regular assessments and company-wide education to sharply align our defenses.
  • Sanctions are controlled at all layers
    Overall protection measures integrated throughout Kraken’s architecture.
  • Regulatory benchmarks and licensing expansions
    Tools and standards that allow for smoother licensing, and faster time to market globally.
  • Active engagement with regulatory authorities
    Open and constructive dialogue that helps shape thoughtful and effective regulations.
  • Strengthening due diligence for investors, M&As and product launches
    Strategic compliance is integrated into the way we grow.

All of these upgrades are a step towards our bigger goal. It is to make Kraken the most trusted and secure venue for code. Together, these features help protect clients, strengthen trust and strengthen Kraken’s role as a responsible industry leader.

Built for scale designed for reliability

Strong compliance is not just a risk reduction, but a strategic advantage. With these improvements, Kraken is ideally positioned below:

  • Expand our business to new countries and expand with new products
  • Promote stronger banking relationships
  • Navigate the regulatory environment with confidence
  • Mitigate audit and operational risks
  • Supports faster and safer growth across the market

The compliance infrastructure we build is scalable, resilient, dynamic, and designed to not only meet today’s demands, but also predict tomorrow’s demands. We are proud of how far we have come and are even more excited about where we are heading. Because at Kraken, we don’t just build responsibly. It’s how we can lead the way, create a safer industrial ecosystem and accelerate the adoption of crypto.

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OpenAI Steps Back as Meta Takes 49% Stake in Scale AI https://earlybirdsinvest.com/openai-steps-back-as-meta-takes-49-stake-in-scale-ai/ https://earlybirdsinvest.com/openai-steps-back-as-meta-takes-49-stake-in-scale-ai/#respond Sun, 22 Jun 2025 02:02:03 +0000 https://earlybirdsinvest.com/openai-steps-back-as-meta-takes-49-stake-in-scale-ai/

The artificial intelligence (AI) firm OpenAI has reduced its use of Scale AI’s services after Meta announced a major investment in the data labeling startup.

The decision to scale back was already in motion before Meta announced its plan to acquire a 49% stake in the company for $14.8 billion.

According to a June 19 report by Bloomberg, OpenAI confirmed that it had started moving away from Scale over the past year.

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A spokesperson told Bloomberg that the company is currently focused on collaborating with suppliers that offer more specialized data. While Scale was one of its data providers, the share of data OpenAI received from the company was small.

OpenAI is working with other firms to meet its data requirements. One of the companies it has turned to is Mercor, a newer name in the industry.

Founded in 2016, Scale AI provides labeled data that helps train machine learning models. It has supplied data to many AI developers, including Anthropic, Cohere, and Adept.

After the Meta deal was announced, Scale’s interim CEO, Jason Droege, stated that the company will continue to operate independently. He also emphasized that Scale is still fully committed to keeping its customers’ data secure.

Other major tech firms, including Google, Microsoft, and xAI, have also decided to cut ties with Scale AI following Meta’s investment. Why? Read the full story.

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.


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New Demand For Bitcoin Is Drying Up Fast – Capital Exits At Scale https://earlybirdsinvest.com/new-demand-for-bitcoin-is-drying-up-fast-capital-exits-at-scale/ https://earlybirdsinvest.com/new-demand-for-bitcoin-is-drying-up-fast-capital-exits-at-scale/#respond Fri, 20 Jun 2025 19:34:54 +0000 https://earlybirdsinvest.com/new-demand-for-bitcoin-is-drying-up-fast-capital-exits-at-scale/

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Bitcoin has entered a prolonged phase of sideways price action, trading in a tight consolidation range just below its $112,000 all-time high. Since late May, BTC has repeatedly tested the upper boundary around $110,000 but has failed to break above it convincingly. At the same time, bears have been unable to push the price lower in a meaningful way, keeping Bitcoin locked in a stagnant pattern.

This lack of direction is frustrating both bulls and bears, with many analysts expecting a major move to unfold soon. On-chain metrics suggest that market momentum may be fading, especially among newer participants. According to data from CryptoQuant, short-term holders currently hold 4.5 million BTC, which is 800,000 fewer than they held on May 27. This signals a significant drop in speculative demand, as “new money” appears to be drying up in the current market environment.

Without fresh inflows of capital or a strong shift in sentiment, Bitcoin may continue hovering near key resistance for the time being. However, as history shows, such compressions often precede explosive volatility, making the coming days potentially pivotal for Bitcoin’s next major trend.

Volatility Grows But Bitcoin Holds Strong Above Key Support

Bitcoin continues to weather macro and geopolitical turbulence, holding firm above the critical $103,600 support despite growing volatility. As Middle East conflicts escalate and macroeconomic pressures mount—including rising US Treasury yields and persistent inflation risks—financial markets remain fragile. Yet, Bitcoin appears to thrive in this uncertain environment, consolidating with resilience near all-time highs.

Market analysts remain split on what’s next. Some suggest that Bitcoin needs clearer signals, particularly from geopolitical or economic developments, before it can break out in either direction. Others argue that BTC is simply building energy for the next leg up, and price discovery beyond $112,000 is only a matter of time.

However, recent on-chain data from CryptoQuant suggests that bullish momentum may be fading, at least temporarily. Short-term holders, often the most reactive participants in the market, have reduced their holdings to 4.5 million BTC. That’s a drop of 800,000 BTC since May 27. Even more striking is the demand momentum, which has now fallen to –2 million BTC—the worst reading on record. This suggests new money is no longer entering the market at meaningful levels, dampening the potential for an immediate rally.

Bitcoin Demand Momentum | Source: CryptoQuant on X
Bitcoin Demand Momentum | Source: CryptoQuant on X

Despite these metrics, Bitcoin’s ability to stay above $103,600 reflects underlying strength. As the market enters a potential inflection point, this equilibrium may soon give way to a decisive move—up or down.

BTC Price Holds Steady Within Key Range

The daily Bitcoin chart shows BTC continuing to consolidate within a well-defined range, trading between $103,600 and $109,300. Since reaching its all-time high of $112,000 in late May, price action has flattened, signaling indecision among market participants. The 50-day simple moving average (SMA) is now acting as dynamic support, aligning closely with the $104,700 region, while the $109,300 zone has repeatedly served as resistance, rejecting further upside attempts.

BTC holding the 50-day MA | Source: BTCUSDT chart on TradingView
BTC holding the 50-day MA | Source: BTCUSDT chart on TradingView

Volume remains relatively low, reflecting a lack of conviction from both bulls and bears. However, despite several tests of the lower boundary near $103,600, Bitcoin has not broken down, suggesting buyers are still absorbing sell pressure and defending the trend. On the upside, any daily close above $109,300 could open the door to a retest of the $112,000 level and potentially new highs.

This tight structure sets the stage for a breakout. Momentum will likely build once the price escapes this zone, especially with macroeconomic uncertainties and geopolitical tensions driving volatility. Until then, traders should monitor how BTC behaves around these boundaries, as a decisive move in either direction will likely dictate short-term market sentiment.

Featured image from Dall-E, chart from TradingView

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Meta Drops $14.3 Billion on Scale AI to Fuel Its AGI Dream https://earlybirdsinvest.com/meta-drops-14-3-billion-on-scale-ai-to-fuel-its-agi-dream/ https://earlybirdsinvest.com/meta-drops-14-3-billion-on-scale-ai-to-fuel-its-agi-dream/#respond Fri, 13 Jun 2025 21:41:27 +0000 https://earlybirdsinvest.com/meta-drops-14-3-billion-on-scale-ai-to-fuel-its-agi-dream/

Meta has invested $14.3 billion into Scale AI, a company that provides labeled data used to train artificial intelligence (AI) systems.

This deal, announced on June 12, gives Meta a 49% ownership stake in Scale AI and values the company at more than $29 billion.

Rather than buying the company outright, Meta chose to become a large minority investor, which helps Scale AI remain independent and may reduce the risk of increased scrutiny from regulators.

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Scale AI works by hiring people, many of them based outside the US, to tag and sort data that trains AI systems. Its clients include tech companies like Google and OpenAI. These data-labeling tasks help AI models learn how to understand and respond to the world.

Meta has said the partnership will strengthen its own efforts to build better AI by improving how it produces and uses this kind of training data.

Alexandr Wang, the 27-year-old founder of Scale AI, shared in a June 13 post on X that he will step down from his CEO role to launch a new research group within Meta focused on developing “superintelligence”, or artificial general intelligence (AGI).

He will remain on Scale AI’s board of directors. In the meantime, the company’s Chief Strategy Officer, Jason Droege, will take over as interim CEO.

Wang told Scale employees that the investment was a major milestone for the company and a sign of how far their work has come.

Mattel, the company behind brands like Barbie and Hot Wheels, recently announced a partnership with OpenAI. What is the goal of the collaboration? Read the full story.

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.


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Ethereum to Scale Layer 1 by 10X in a Year, Says Vitalik Buterin https://earlybirdsinvest.com/ethereum-to-scale-layer-1-by-10x-in-a-year-says-vitalik-buterin/ https://earlybirdsinvest.com/ethereum-to-scale-layer-1-by-10x-in-a-year-says-vitalik-buterin/#respond Mon, 02 Jun 2025 20:06:29 +0000 https://earlybirdsinvest.com/ethereum-to-scale-layer-1-by-10x-in-a-year-says-vitalik-buterin/

Vitalik Buterin has announced that Ethereum’s Layer 1 (L1) will be scaled by 10x in the next year.

This comes amidst calls for an immediate L1 scaling amongst the community.

Buterin’s Implementation Strategy

The Ethereum co-founder confirmed the plans during a panel discussion at ETHGlobal Prague.

“My view is generally I think we should scale L1 by about 10x over the next year and a bit based on delayed execution,” he said.

When asked why he preferred a slower approach, Buterin said a year would be the best implementation timeline. While acknowledging that some people are more aggressive and want to skip the pause and commit to scaling 1,000 times right away, he emphasized that he supports a more cautious and structured strategy.

He further explained that this execution depends on upgrades like mobile log-level access lists, networking-level improvements, and distributed history storage.

Buterin noted that after this is done, it would be a good time to “take a breather” and check if decentralization is still strong. During this pause, he suggested a hard fork to fix remaining issues like account abstraction, censorship resistance, VM improvements, protocol simplification, and switching to SSL.

However, he clarified that when zero-knowledge Ethereum Virtual Machines are ready, the network can progress further and faster.

The 31-year-old has also previously supported using partially stateless nodes to help grow Ethereum. This would let the chain validate blocks without storing all historical data, which makes it easier for users to run nodes without needing large amounts of storage.

Calls for Urgent Scaling

After a weak Q1 marked by falling ETH prices and declining on-chain metrics, some key voices in the community have been advocating for immediate L1 scaling.

Top Ethereum researcher Dankrad Feist has proposed EIP-7938, a plan that would raise Ethereum’s gas limit. His goal is to boost the blockchain’s capacity by 100 times over the next four years, which would allow for more activity on the network.

He maintains that Ethereum can still keep its privacy and decentralized features under this plan. According to him, backing the proposal would show a strong commitment at a time when it is facing major challenges.

Meanwhile, Cardano founder Charles Hoskinson has said Ethereum might not survive the next decade. He compared its future to that of Myspace and Blackberry, once-popular platforms that eventually lost relevance. The developer blamed “parasitic” Layer-2s for weakening the network’s core.

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