GM. This is Milk Road, the newsletter that gets giddy with excitement for the future of crypto, and sends that energy your way (daily).
Here’s what we got for you today:
- ✍️ The Alipay creators launched an L2
- ✍️ This chart say $6k $ETH by Dec
- 🎙️ The Milk Road Show: Arthur Hayes: The Crypto Bull Run No One Is Ready For
- 🍪 Still worried about these latest China tariffs?
Walrus is making blockchains faster, cheaper and more secure. Click here to learn more about Walrus.
Prices as of 2:00 PM ET. Buy today with Milk Road Swap.
THE CREATORS OF ALIPAY JUST LAUNCHED AN L2 💪
Imagine if Apple and Google simultaneously announced they were launching Ethereum L2s with the goal of bridging web2 and web3.
The crypto community would start losing their hair due to nervous excitement.
What we’re talking about today is bigger in a numbers-to-numbers comparison.
…but we get the feeling it’s not going to garner nearly the same kind of excitement.
Ant Group, creators of Alipay, just announced they’re launching an Ethereum L2 called ‘Jovay’.
If you’re not familiar with Alipay – lemme catch you up and highlight what this could mean…
1/ 92% of Chinese online consumers have used Alipay in the past 12 months
That’s a higher share than WeChat – the Chinese ‘everything app’.
2/ Alipay is bigger than Apple Pay and Google Pay, combined
Apple Pay has more than 650M global active users, while Google Pay has around 520M.
That’s ~1.17B active users in total, who have brought in an estimated $9T+ of transaction volume (so far) in 2025.
Alipay is politely requesting that Apple and Google hold its beer, with a tidy 1.4B monthly active users, and estimated $20T of transaction volume in 2025.
3/ If Alipay were to adopt Jovay, it could easily outpace other major L2s
To give you an idea of the numbers Jovay could pull if it were plugged into Alipay, let’s do some back of the napkin math…
Converting just 1% of Alipay’s 1.4B active users would equate to ~14M monthly active addresses on Jovay…
Which would put it comfortably above Base Chain’s current monthly active address count:
Now – before you get too excited, lemme throw a bit of cold water on all of the above:
Ant Group has announced nothing beyond the launch of the Jovay L2 – there’s no concrete public statements saying they’re going to integrate it into Alipay.
But for an L2 with the stated goal of ‘bridging web2 and web3’, coming from a culture that has a penchant for building fully integrated ‘everything apps’...
It’s not out of the bounds of possibility.
(And that’s worth getting excited about.)
WEB3’S PRIVACY ISSUE: FIXED 🤝
Imagine if Google made it so anyone with the right link could access your online data.
(It’d be bedlam!)
…now get this: in web3, that concept isn’t a hypothetical, it’s a reality.
Thankfully, Walrus has closed this privacy gap with the launch of Seal — a decentralized access control service.
Seal’s use cases are FAR reaching! For example:
- AI marketplaces: gate access to datasets, models, and chat logs, while sharing only when needed
- Gaming: reach encrypted in-game content as players reach certain milestones
- Content monetization: encrypt media and unlock with pay-to-decrypt, tiered access, timed trials
Ready to super charge your web3 app?
Click here to learn more about Walrus!
COTD: $ETH VS. GLOBAL M2 📊
Everyone loves to talk about the correlation between $BTC and Global M2, ourselves included.
But $ETH rarely gets the same treatment – so let’s fix that (and get a year-end price prediction while we’re at it).
ICYMI: Global M2 is the total money supply of major economies converted to US dollars.
(This includes physical currency in circulation, checking account deposits, savings deposits, and money market funds.)
What’s interesting is, there’s often a correlation between Global M2 and crypto – where, whatever M2 does, crypto tends to follow 3 months later.
It’s not perfect. But it tends to be directionally correct, and that’s enough for us.
Check out the chart below – it takes Global M2, shifts it forward 3 months, then compares it to $ETH’s current price. 👇
Ok, now – look a little closer…
If the price re-correlates over the coming months, Global M2 is telling us to expect a $6k+ $ETH by December. 🤝
BTW: it’s because of data like this that we’re running our current wager, where:
If $ETH doesn’t hit a new all-time high by Dec 31st, we’ll give a full refund to anyone that signs up for Milk Road Crypto PRO or All Access between now and Saturday, Oct 18.
(Plus 20% off up front.)
The takeaway:
Despite this recent pullback, the forward looking data is still bullish!
BITE-SIZED COOKIES FOR THE ROAD 🍪
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Uptober is not dead (yet) — Here are 3 tokens that could pump.
Still worried about these latest China tariffs? The Kobeissi Letter laid out the ‘Trump tariff announcement playbook’ to calm your nerves.
So, not the $8B of customer funds that were lost? SBF blames Biden’s ‘anti-crypto’ agenda for 25-year prison sentence ahead of appeal hearing — DL News.
The lines between crypto and TradFi continue to blur. The crypto yield platform, Nexo, just added leverage trading across stocks, gold, oil, forex, indices.**
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