Read in the Digest:
- Bitcoin weekend recap, Arizona to make Bitcoin legal tender, Bitcoin miner predicts massive hash rate growth.
- Terra (LUNA) drops hit 35% in one week, Dogecoin overtakes Terra.
- Wonderland considers shutting down after voting out QuadrigaCX’s Sifu.
- Internet Computer (ICP) plans Bitcoin and Ethereum integration for 2022.
Bitcoin Weekend Recap, Arizona to Make Bitcoin Legal Tender, Bitcoin Miner Predicts Massive Hash Rate Growth
After a turbulent start to the year, Bitcoin is kicking off the Year of the Tiger (as the Lunar New Year holiday week opens) in a relatively stable state. After recovering from its 6-month low, Bitcoin has consolidated between the $35k and $38k marks, and experts predict the trend to continue throughout the celebration.
The five day price chart for Bitcoin. Source: Tradingview
In addition to its stabilizing prices, over the weekend the trading volume of Bitcoin was the lowest recorded since July 2020 at $14.64 and $17.19 billion on January 31st and 30th respectively. According to analysts, the light trading volume could continue over the holiday.
Following in the footsteps of El Salvador, Arizona Senator Wendy Rogers has submitted a bill numbered SB1341 that could see the American state install Bitcoin as a legal tender. Should the bill pass, Bitcoin would be accepted in the payment of debts, public charges, taxes, and other dues.
While Bitcoin mining has encountered some staunch opposition in governmental policies of late, miners remain bullish about Bitcoin’s hash rate. In supporting other miners, Michael Levitt of Core Scientific predicts that the BTC global hash rate will continue to grow aggressively.
- Despite its significance, the Arizona bill has little chance of passing as the U.S. constitution seemingly prevents states from declaring assets as legal tender.
Terra (LUNA) Drop Hit 35% in One Week, Dogecoin Overtakes Terra
Terra (LUNA), one of 2021’s top performing cryptocurrencies, was subject to one of the worst recorded streaks of losses over the last week. LUNA lost more than 35% over the week beginning Monday 24th, with a 17% drop coming on Friday alone.
The seven day price chart for Terra (LUNA). Source: Tradingview
Terra’s shocking plummet coincided with the reveal of Michael Patryn’s, co-founder of defunct Canadian exchange QuadrigaCX, involvement with Wonderland, a DeFi borrowing and lending protocol.
Although Terra has no direct ties with Patryn, its partner, the Abracadabra protocol, is closely associated with Wonderland, being a project within its ecosystem. In addition to this, its stablecoin, TerraUSD (UST), is used for staking on Abracadabra.
Unfortunately, the revelation has seen the price of the LUNA lost in freefall ever since the news broke. As Terra’s price drops to ever new lows, leading meme coin Dogecoin has stolen its position, which climbed to 9th in the ranking of crypto assets by market cap ranking.
- Do Kwon of Terraform has announced plans to tackle the issue of the asset’s depleting value with an immediate cash injection.
Why You Should Care
How Terra Lab tackles its present predicament will have a direct impact on the price of LUNA and its entire DeFi ecosystem, which is still in a pivotal stage of growth.
Wonderland Considers Shutting Down After Voting out QuadrigaCX’s Sifu
Having also been roped into the debacle due to its connection with Michael Patryn, who was operating under the pseudonym “Sifu,” Wonderland instigated a community vote, the result of which saw Sifu removed as treasury manager of Wonderland.
The results of the poll showed that 87.5% of the Wonderland community voted for Sifu to be replaced. Despite kicking Sifu out, the future of the Wonderland project still hangs in the balance.
Another poll was soon held on whether to pull the plug on the project entirely, and resulted in mixed feelings. While 55% of the community wants the project to continue, another 45% wants the project shut down, causing Wonderland’s Co-Founder Daniele Sestagalli to seriously contemplate throwing in the towel.
Reacting to the disagreement within the community, Sestagalli wrote, “the core and heart of Wonderland is still the community. If we cannot find agreement on whether to continue or not, it means that we failed.”
- Several alternative proposals have since been put forward hoping to save the project, as some community members believe the votes were not split in half.
Why You Should Care
How the Wonderland team handles this current precarious situation could have a significant ripple affect on the future of DeFi, as the sector boasts on being built around the community.
Internet Computer (ICP) Plans Bitcoin and Ethereum Integration for 2022
Dfinity Foundation’s Internet Computer, a blockchain solution that allows users to install smart contracts and dApps directly on the blockchain, has released its roadmap for 2022. In the updated plan, ICP revealed its intentions to integrate Bitcoin and Ethereum in 2022.
Its “Chromium Satoshi Release,” scheduled for Q1 2022, will include direct Bitcoin integration. The upgrade would come with “chain key cryptography,” removing the need for bridges that can be exploited.
According to ICP, following its integration of Bitcoin, users “will be able to hold, send and receive Bitcoin, without the need for private keys.”
Internet Computer has pegged its Ethereum integration to roll out in Q3 of 2022 with the ‘Vanadium Vitalik Release.’ However, Dfinity provided notably less information about the Ethereum integration than it did for Bitcoin’s.
- Despite its strong performance, ICP’s price trajectory has been more or less stagnant, remaining around the $19.14 mark as of this writing after losing 96% of its value.
Why You Should Care
By integrating a range of different networks, Internet Computer looks to tackle the issues of speed, storage costs, security, and scalability that have plagued blockchains since their inception.