The Normalization Of Bitcoin Is Intensifying

The Lightning Network, Bitcoin's favorite layer 2 technology that makes payments faster and cheaper, is now officially running on the number one finance app in the app store, Cash App.

While it's still not clear how the first users were selected and how many users have received the new Lightning feature (all we've seen are a couple of screenshots and examples on Twitter)... This is still a massive step for adoption and the normalization of the Bitcoin + Lightning Network stack.

Slowly but surely, the masses will discover there are more ways to send/receive BTC in a cheaper, faster, and simpler fashion. Furthermore, as more providers come on board, Bitcoin will increasingly be seen as a payment system.

Looking Ahead...
According to our friend Marty, the next logical steps for crypto-friendly payment companies such as Square and Cash App are to:

Enable the ability of merchants to easily accept BTC and/or convert a portion of their revenue into BTC at the point of sale. (This could have an immediate effect on demand and Merchant adoption, especially in an inflationary environment)
Give users the ability to purchase goods in dollars or sats via the point-and-scan mobile app feature.

Maelstrom

The Fed money printer has been stopped for months now, but its resounding impact continues. Meat, veggies, taxi rides, rents, and other essentials are rising faster than wages resulting in a new Public Enemy №1 — inflation.

Most market participants believe the Democrats — who must prove they are tough on inflation to avert losing in the November congressional elections — will instruct the Fed to raise interest rates, and the Fed will oblige. But there is less consensus regarding how a series of short-term interest rate hikes will impact both traditional/ crypto assets — i.e., whether they will weather the storm, or buckle under the pressure.

Here at CoinSnacks, we have consistently suggested thinking like long-term investors (not traders), but there is no denying that the next 3-6 months could be gut-wrenching for holders of crypto assets.

Now, we aren't suggesting that you start staring at crypto charts 24/7, watching prices gyrate, but right now is probably a good time to reevaluate and rebalance your portfolio. Before you do that, however, you should get a lay of the land here.

Related: Why Bitcoin Is Behaving Like It Should

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DEEP DIVES

Web3 Developer Report (2021)

Each year, Electric Capital puts out a report to gauge the growth of the crypto ecosystem by focusing on the developers rather than market price or user growth. This year, they looked at nearly 500K code repositories and 160 million code commits across web3.

Here's what you need to know (TLDR here):

There are now 18,400+ developers working monthly on Web3 (up 75% from Jan. 2021)
Over 3,000 new developers try Web3 every month - an all-time high
Developer growth was up 66% in the top 200 crypto assets, but 86% outside of the top 200
20-25% of new devs each month start on Ethereum
More than 2.5k devs now work in DeFi (up 75%) and less than 1,000 full-time developers are responsible for over $100 billion in total value locked in smart contracts

The Top Sectors Of Web3 In 2022 By Revenue

Here's an interesting analysis by venture capitalist, Tomasz Tunguz, on what crypto categories produce the most revenue and how this translates into valuations.

The main takeaway is that social proof (not revenues) is driving most of the value right now (but expect this to change as the market matures).

Decentraland: The Metaverse's Early Mover

If you're still wondering what this whole Metaverse thing is all about, we highly recommend reading Mario Gabriele's latest primer on Decentraland – the OG metaverse protocol that has been building and shaping the industry for years.

Mario tells all of us about his strange journey through the "spatial web," some industry realities (both good and bad), and what newcomers should expect going forward.

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REGULATORY FRONT

Turks Pile Into Bitcoin & Tether To Escape Plunging Lira

After losing more than half of its value, before recovering a bit on the back of a new economic plan, the Turkish lira continues to have a volatile year.

This has naturally led to Turks being wary of anything to do with the lira. Interestingly though, it has created a surge in cryptocurrency trading volumes with more than $1.8 billion per day being traded despite the fact that there is an official ban on using cryptocurrencies in the country.

Turks are particularly enamored with Tether as the lira has become the most traded government-issued currency against the stablecoin, outpacing even the dollar and the euro.

In Istanbul, ads for cryptocurrency exchanges appear across the city while shops selling bitcoin have cropped up in the Grand Bazaar, tucked into alleys near where traders also sell foreign currency and gold.

Related: Jack Mallers launches Strike in Argentina to give hope to the people.

Northwest Arkansas Wants YOU

To encourage entrepreneurs and other technology professionals to relocate to Northwest Arkansas, the Northwest Arkansas Council announced today that it would offer $10,000 in BTC as an incentive.

"But wait, there's more!" goes the spokesman. In addition to the $10,000 worth of BTC, recipients will receive BRAND NEW street or mountain bike. 😵

This marks the first region in the country to offer cryptocurrency to potential transplants, as the region’s growing tech sector — specifically within blockchain-enabled technologies — is looking for talent.

TWEET OF THE WEEK