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(7 Day Change as of May 5, 2022 12:55PM ET)
Bitcoin Price: $29,540  1 .15%
DeFi Total-Value-Locked: $49.74B
Ethereum Price: $1,988  4.96%
Crypto Market Cap: $1.21T
Bitcoin Range: $27,678 - $29,967
BITC.U Close: $8.44 (as at May 4, 2023)
Ethereum Range: $1,821 - $2,000
BITC.U NAV: $8.49
Bitcoin Dominance: 48.40% (0.35%)

BITC.U Discount: 0.58%


By Alex Tapscott


Last week, I was down in Austin for Consensus, one of the world’s largest and longest running Web3 events. In contrast to the past two years, 2023’s event was a more subdued affair. By some estimates, attendance was down by around 75%. A lot fewer celebrities dropped by as the biggest players have pulled back on endorsement deals in the wake of the FTX debacle. Still, despite the more modest showing, the mood was good. The feeling was that a lot of so-called “tourists” – people who came to Web3 seeking riches and glory in the last bull market- had gone, but that all the best builders, developers, and teams were still at it. Web3 entrepreneurs and developers remained committed to building through the bear, and the mood was quite collaborative.

Here are my THREE big takeaways from the event:

1. Fundraising in Full Swing: Many of the people I spoke to are entrepreneurs looking to raise capital. Perhaps that is because I ‘self selected’ to attend meetups connecting investors and founders, but the trend extended beyond these arranged meetings. As Andrew observed on this week’s DeFi Decoded, a lot of companies raise capital on a 2-3 year runway, so it is logical that anyone who funded in 2021 would be looking at a short runway before needing to launch another round. Given the fact that Web3 VCs raised tens of billions of dollars in 2021 and 2022, it is surprising that some companies see a paucity of willing investors, but good projects still get funded and the view is many VCs are either nursing wounds from the last cycle or waiting for valuations to come to them.

2. The Offshoring of Web3 Due to Regulatory Uncertainty: The view from attendees is that the U.S.’s inability to establish a clear regulatory crypto framework at the pace of other nations, and its choice to use enforcement actions as the primary policy tool, may prove detrimental to its competitiveness. Attendees from Hong Kong, Dubai, and even Europe were quick to draw a stark contrast between the approach of their governments and that of the U.S. To be sure, the conference’s attendance pool of policymakers and traditional enterprises highlighted the evolution of the industry and highlight the support it has in some corners of D.C., but overall the tone on the U.S. is bearish. There was even a rumour that Consensus itself, an emblem of U.S. Web3 leadership is moving offshore next year- perhaps to Canada! Web3 is a global industry emerging at a time when technology tools are more distributed than ever. The view is the U.S. has a lot more to lose here than before when it would have been a default winner regardless of the position government took.

3. Enterprise Adoption Continues, But Regulatory Fog Clouds Outlook: Big businesses remain excited about the potential of Web3 and its use cases. There are a lot of experiments going on, and some companies are leaning into this technology very hard, such as Google with its Web3 cloud services business, Visa with its major hiring efforts, or Mastercard building credentialing systems for Web3. But the prevailing feeling is that until there is some regulatory clarity, big companies will not go “all-in” on any Web3 application that requires them to buy, hold, earn, or reward customers with tokens.

Visa Hiring Crypto Developers to Front its Ambitious Crypto Product Roadmap

Visa is hiring experienced crypto developers to help drive the mainstream adoption of public blockchain networks and stablecoin payments. The company's head of crypto, Cuy Sheffield, took to Twitter to reveal an "ambitious crypto product roadmap.” The vacancies are for senior software engineers, and this move highlights the growing interest of major players in the finance industry in cryptocurrency and its underlying technology. Visa's efforts to hire experienced crypto developers come in the wake of its announcement that it is committed to expanding its offerings in the space as it explores opportunities for the conversion of digital assets into fiat payments.

Mastercard’s Crypto Credential: A New Era of Trust in Transactions

Mastercard has launched the Mastercard Crypto Credential to establish trusted interactions between consumers and businesses using public blockchain networks. It provides a set of common standards and infrastructure that will help unlock various use cases. This credential will define verification standards and levels, provide necessary enabling technology, and tap into CipherTrace's services to ensure compliance. Mastercard is collaborating with crypto wallet providers and public blockchain network organizations to enhance trust and fuel innovation in NFTs, ticketing, enterprise, and other payment solutions.

Google Cloud Launches Web3 Program to Help Founders Build, Scale, and Innovate

Google Cloud has launched a new program aimed at helping emerging Web3 startups and projects build and scale faster and more securely. Web3 builders will be able to focus on innovation rather than infrastructure by building on Google's fully managed, serverless platform at no cost, along with access to community, resources, and Web3-specific benefits. These benefits include access to up to $200,000 in Google Cloud credits over two years, early access to Google Cloud Web3 products, free access to advanced hands-on learning labs, gated Discord channels, and exclusive grants and investments from partner foundations. Google Cloud aims to help Web3 founders and developers move fast and build the future together.

Circle Launches Cross-Chain Transfer Protocol for USDC Stablecoin on Ethereum & Avalanche

Circle has launched its Cross-Chain Transfer Protocol (CCTP) to allow native cross-chain experiences for USDC. The new permissionless protocol will enable USDC to flow natively across supported chains, making transacting in a multi-chain environment simpler and more secure. CCTP offers developers a secure way to programmatically "burn and mint" USDC within their apps, avoiding the complications and risks of traditional "lock and mint" approaches. Over time, CCTP will help unify liquidity around native USDC in Web3 and support safer payment experiences. CCTP is already live on the main net with several multi-chain apps and is expected to expand to other chains later this year.

Binance.US Walks Away From $1.3 Billion Acquisition Deal of Voyager Digital

Binance.US has scrapped its $1.3 billion deal to buy bankrupt crypto lender Voyager Digital's assets, citing a hostile and uncertain regulatory climate in the US. This latest move adds another obstacle for Voyager, which has been seeking to raise funds through an asset sale to pay creditors after going into bankruptcy last year. The acquisition by Binance.US was beset by regulatory challenges, leading a federal judge to halt the deal last month temporarily. Voyager will now return cryptocurrency and cash directly to its customers via the Voyager platform following the termination of this agreement.
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Consensus Time - What’s Going on in Web3?

Join Alex Tapscott and Andrew Young as they decode the world of DeFi. Listen in as they discuss Alex’s insights from the Consensus 2023 conference, the state of venture capital funding, a macroeconomic market analysis, factors that may impact crypto moving forward, Bitcoin’s halving less than a year away, Coinbase’s international perps exchange, and more!

Alex travelled down south last weekend to Texas’ capital, Austin, for the Consensus 2023 conference, one of the largest, longest-tenured, and most influential gatherings across the crypto ecosystem and community. Hearing from and speaking to investors, developers, and industry builders, Alex shares his observations and experiences from his three days on the ground. With the current macroeconomic environment of rising interest rates and an unfolding banking crisis, Andrew provides his take on crypto’s role and the impact such influences will have on it. Despite regulatory crackdown within American borders, Coinbase has launched a perps exchange based out of Bermuda, offering non-U.S. traders 5x leverage with perpetual futures.

Tune in to the 94th DeFi Decoded episode to hear Alex and Andrew discuss all things Consensus 2023 and the macroeconomic environment for crypto. How was Alex’s experience at the conference, and what insights and lessons did he learn? What is the state of the macroeconomic environment, and how might its outlook impact crypto? What is Coinbase’s new international perps exchange, and how does it work?

Source: look into bitcoin
Chart #1: Crunching the Numbers: Bitcoin’s Stock-To-Flow Model & Upcoming Halving Hint Growth
Bitcoin's stock-to-flow (S2F) model estimates the future price of Bitcoin based on its availability relative to production. The model variance is currently at -.66, indicating that Bitcoin is undervalued compared to the model's predicted price. The upcoming Bitcoin halving event, now officially just less than 365 days away, will further reduce the supply of new Bitcoin, which has historically led to an increase in its price. As such, the current undervaluation according to the stock-to-flow model and the imminent halving event may indicate a positive outlook for Bitcoin's growth in the coming years.
Source: The Block
Chart #2: Riding the Wave: Bitcoin Network Sets Daily All-Time High of 492,000 in Transaction Volume
The Bitcoin Network has registered a surge in its transaction volume, marked by the 7-day moving average (7DMA) hitting a new all-time high of 492K this past week, a 100% increase since January 1. This bullish momentum is complemented by Bitcoin's 69% year-to-date price appreciation, which reveals the growing adoption and utilization of the network and preference among investors to gain exposure to Bitcoin. As such, milestones like this support the continued upward trajectory of Bitcoin's popularity and utility.
Source: messari
Chart #3: Bitcoin’s $1+ Holders Multiply: Bitcoin Wallets Holding At Least $1 Near 40 Million  
The total number of Bitcoin addresses holding at least $1 has set a new high of 38.7 million, spiking by 91% since 2020, with increases of 33%, 12%, and 13% since 2021, 2022, and 2023. If this positive trend continues, it could pave the way for mainstream adoption. Monitoring this metric will help gauge overall crypto adoption, as it excludes non-zero balances. As more individuals learn about and grow confident in Bitcoin's uses and underlying technology, this metric should continue to rise.

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