Main topic: The state of the crypto world and the promising growth of web3 development.
Key points:
1. The crypto world is currently facing challenges, including fewer checks being written and regulatory pressure in the U.S., as well as global economic uncertainty.
2. Despite this, web3 developer activity has continued to grow in the second quarter, with significant installations of Ethereum and crypto wallet software developer kits.
3. Ethereum's price has increased by 53.7% since the beginning of the year, potentially sparking greater interest in the market.
4. The web3 ecosystem is rapidly growing, with more developers contributing to projects and launching web3 apps/games.
5. Other layer-2 blockchains, such as Arbitrum, Optimism, and Polygon, have also seen significant gains.
6. However, NFT trading volume and users have declined, while decentralized finance trading volume has fallen, although the number of users has increased.
7. The increase in DeFi users indicates the stickiness of projects and products in that subsector.
8. Despite current challenges, past cycles suggest a positive outlook for the crypto industry.
Crypto's benefits, such as decentralization and personal autonomy, align with fundamental American rights, including free speech, privacy, and due process, strengthening core American ideals.
Crypto became a popular alternative for sex workers who were shut out from traditional banking systems, but the U.S. government's crackdown on crypto is making it increasingly difficult for them to use.
Former Goldman Sachs executive and Real Vision CEO Raoul Pal explains that crypto assets, unlike other systems, allow users to own and operate pieces of a network, creating scarcity in an increasingly digital world and leading to potentially much larger market cycles.
The crypto ATM industry in the United States is thriving despite concerns over illegal activities, with a growing customer base and a need for better education about crypto, according to a report by the Federal Reserve Bank of Kansas City.
A lack of basic infrastructure is hindering cryptocurrency adoption in Africa, according to Christian Duffus, founder of Fonbnk, who focuses on innovative ways to onboard new crypto users in developing markets and highlights the role of education and regulation in the process.
Crypto adoption in Turkey has increased from 40% to 52%, driven by high inflation and a decreasing value of the Turkish lira, according to a survey conducted by KuCoin. Bitcoin is the most popular cryptocurrency, and younger women are increasingly investing, with 47% of investors between 18 and 30 being female.
A recent report reveals that people in Turkey are embracing crypto as a long-term investment strategy due to the depreciation of the Turkish Lira and the desire to grow wealth and protect against inflation.
Market makers in the crypto sector are facing increased costs and lower profitability as investors shy away from the industry following a $2 trillion market crash, leading them to diversify their activities, store digital assets away from trading venues, and use them as collateral to borrow tokens for deployment on crypto platforms.
The market is underestimating the potential impact and value of Spot Bitcoin ETFs, with analysts arguing that approval would lead to significant financial inflows and buying pressure, and that it is a good time to enter the market and start building a crypto portfolio, despite regulatory challenges. Ethereum could also benefit from a futures-based ETF listing, but there is caution about the SEC potentially classifying ETH as a security. Overall, the global crypto adoption is dependent on market maturity, regulatory intervention, and consistent long-term adoption.
The use of crypto wallets is predicted to grow by $686 million by 2026, driven by the expansion of wireless networks, online transactions, and evolving regulations, according to market research firm Technavio, with the COVID-19 pandemic and the rise of play-to-earn games contributing to the increase in wallet creation. However, new regulations aimed at regulating cryptocurrencies could potentially slow down adoption.
Despite claims of a bear market for cryptocurrencies, indicators such as website traffic suggest that crypto adoption and demand for crypto services have actually been growing in 2023.
A recent report from Chainalysis suggests that grassroots cryptocurrency adoption is seeing a stronger recovery in lower middle-income nations compared to the rest of the world, indicating a potentially promising future for crypto in these countries.
Crypto is poised to create a new investable asset class globally and will revolutionize the internet, requiring new business models, metrics, and research structures, as well as a framework to analyze value flows within the tech stack, particularly in relation to Ethereum's layer 2 solutions.
Cryptocurrency is seen as a solution to the lack of sustainability and investor confidence in the African fintech space, according to experts interviewed on the Hashing It Out podcast.
Brazil's central bank has observed a significant increase in crypto adoption in the country, leading to plans to tighten digital asset regulations, as imports of crypto rose by 44.2% from January to August 2023 compared to the previous year.
Institutional involvement in the crypto industry provides regulatory certainty and clarity, forcing regulators to address taxation, compliance, and reporting challenges, benefiting the entire industry and legitimizing digital assets.
Cryptocurrencies like Bitcoin transcend being just a financial asset, as they are rooted in a socio-political movement focused on privacy and freedom from government control. This movement originated from the development of encryption technology outside of government circles and has gained favor among tech enthusiasts and advocates of minimal government interference in the economy.
Approximately 50% of crypto users invest in digital assets to improve their everyday living standards, according to a survey by Bitget, with respondents in South Korea, Canada, and Turkey having the highest priority on this goal.
The crypto industry in Asia is flourishing as it attracts projects and investors looking to avoid regulatory uncertainties in the US, leveraging favorable policies and growing crypto adoption in the region.
BlackRock's entrance into the cryptocurrency market and adoption of blockchain technology could have a significant impact on Bitcoin, Ethereum, XRP, and other major cryptocurrencies.
Cryptocurrencies like Bitcoin are hugely successful, and investors are now looking for the next big opportunity in the market, with projects like Quant, Hedera, and Cardano standing out due to their utility and integration into the financial system, as well as their compliance with ISO 20022 standards.
