The Digest contains the following:

• Weekend recap: Arizona will make Bitcoin legal tender. Bitcoin miner forecasts huge hash rate growth.

• Terra wins over (LUNA) as LUNA drops to 35% in a single week

• Wonderland considers shutting down after voting out QuadrigaCX’s sifu.

• Internet Computer (ICP), plans Bitcoin and integration by 2022

Bitcoin Weekend Recap: Arizona Makes Bitcoin Legal, Bitcoin Miner Forecasts Huge Growth

Bitcoin’s year-opening celebration of the Year of the Tiger, which marks the Lunar New Year holidays week, is now in a stable place after an uncertain start. Bitcoin recovered from its 6 month low and is currently between $35k-$38k. Experts expect the trend to persist throughout the festivities.

Bitcoin price chart over the past five days Source: Tradingview

Bitcoin’s stabilizing prices aside, the Bitcoin trading volume over the weekend was its lowest since July 2020. It stood at $14.64 billion and $17.19 million on the 31st and the 30th of January respectively. Analysts believe that the holiday will see a continuation of the low trading volume.

Arizona Senator Wendy Rogers (NYSE.:) filed a bill, SB1341. This bill could allow for the American government to legalize Bitcoin. If the bill passes, Bitcoin will be used to pay taxes and debts.

While Bitcoin mining has encountered some staunch opposition in governmental policies of late, miners remain bullish about Bitcoin’s hash rate. Michael Levitt, Core Scientific’s director of mining research predicts that BTC’s global hashrate will grow steadily.

Flipsider:

• The Arizona bill is not likely to pass despite its importance. This is because the U.S. Constitution seems to prohibit states from declaring assets 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 experienced a more than 35% loss over the past week, beginning Monday 24th and ending Friday 26th. A 17% decline was recorded on Friday.

Terra (LUNA) price chart, seven days. 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.

Terra does not have any direct connections with Patryn. However, Terra’s partner, Abracadabra Protocol, is very closely linked to Wonderland as it is a project in its ecosystem. TerraUSD (UST), its stablecoin is also used to stake on Abracadabra.

Unfortunately, since news of this revelation broke, the price for the LUNA has been in freefall. 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.

Flipsider:

• Do Kwon of Terraform has announced plans to tackle the issue of the asset’s depleting value with an immediate cash injection.

What You Need to Care About

Terra Lab will be able to address its current problems and have an impact on the price for LUNA, as well its DeFi ecosystem. This is still a critical stage in its 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.

According to the results, 87.5% of Wonderland’s community voted that Sifu should be removed. The future of Wonderland is still in doubt despite Sifu being kicked out.

A second poll on the decision to end the project was held shortly afterward. It produced mixed results. 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.”

Flipsider:

• Many alternative solutions have been proposed to save the project.

What You Need to Care About

This is a critical moment for DeFi. The Wonderland team could make a difference in how they handle it. DeFi prides itself on its community-based approach.

Internet Computer (ICP), Plans Bitcoin Integration and Ethereum 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. ICP has updated its plan to include Bitcoin and Ethereum by 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.

Flipsider:

• 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.

What You Need to Care About

Internet Computer integrates a variety of networks to address the problems of storage and speed that plague blockchains.

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