The Digest contains the following:

• MicroStrategy purchases more BTC to maintain dominance, which is at its two-month high.

• ConsenSys buys MyCrypto from Pay to increase MetaMask’s reach

• In 2022, crypto VC investment booms with New York at the forefront.

• With a planned 11% increase in block size, whale demand for ADA increases

Bitcoin Predominance At Two-Month High. MicroStrategy Purchases More BTC

Despite January 2022 being the worst start to a year since the crypto winter, Bitcoin’s dominance by crypto market cap has only increased. With no sign of an ‘Altseason’ in sight, Bitcoin’s dominance has reached its highest point since November 2021.

Following a rally towards the end of January, the dominance of Bitcoin hit 42.93%, levels last recorded in November 2021 when Bitcoin’s recorded an all-time high. Bitcoin’s dominance now stands at 41.8%, contributing $770 billion to the $1.77 trillion global market cap as of this writing.

Market dominance by the total crypto market. Source: Tradingview

MicroStrategy continued to promote Bitcoin by purchasing an additional 655 Bitcoins worth $25.0 Million. Each Bitcoin is priced at $37,865 USD/BTC. These purchases were made between December 30th 2021 and January 31st 2022.

According to Michael Saylor of business intelligence, the firm now has 125,051 Bitcoins. Saylor estimates that the company acquired bitcoins for $3.78 Billion at an average cost of $30,200 each.

Flipsider:

• Despite Bitcoin’s recent price recovery, options traders have turned bearish as Bitcoin’s inherent volatility drops.

• According to Arcane Research, they are “bearish, but hesitant” about betting on Bitcoin’s next movements.

What You Need to Care About

The increasing dominance of Bitcoin comes as Altcoins continue to be in free-fall, with Solana, , and losing 47%, 34% and 41% respectively, compared to Bitcoin’s 18%.

Solana Pay launches into a new payment era, ConsenSys acquires MyCrypto in order to expand MetaMask

In a bid to solve the crypto payment roadblocks of slow speeds and high transaction costs, on February 1st Solana announced the launch of its new payment protocol, ‘Solana Pay.’ The release of Solana Pay promises to usher users into a new payments era.

Solana Pay was created by a collaboration between Solana Labs and Checkout.com. Circle, Citcon. Phantom and FTX. Built on Solana’s lightning-fast blockchain, Solana Pay will be an intermediary between fiat and the cryptocurrency sector, including NFT integration.

In other news of crypto firm’s expanding their services, ConsenSys has announced the acquisition of Ethereum wallet, ‘MyCrypto.’ While the terms of the deal have not been disclosed, ConsenSys revealed its plans to merge MyCrypto with the MetaMask wallet.

ConsenSys claims that the merger will increase the security and useability of MetaMask’s wallet. Both MyCrypto as well as MetaMask are expected to remain separate brands in the near future.

Flipsider:

• Although Solana Pay launched to high expectations, many users still have concerns. The weakness of Solana’s blockchain.

What You Need to Care About

In an effort to increase their user experience, crypto firms have added new products.

Crypto VC Investments Roar in 2022 With New York Leading The Charge

Venture capitalists paid $25 billion to invest in crypto in 2021. This is a remarkable amount of attention for the industry. Although the crypto industry is still early in 2022, the trend looks set to continue with large-scale investments by VCs this year.

Alexis Ohanian’s VC Firm, ‘776 Management,’ has announced its plans to focus on crypto in 2022, raising $500 million across two new funds. Recently, Solana Labs was partnered by the VC firm to invest $100 million in social decentralized projects.

New York is the most beneficiary of VC firms turning up the heat. NYC was the beneficiary of $6.5 billion in venture capitalist funding, 46% of all crypto VC funding.

New York Digital Investment Group LLC and Celsius Network LLC are leading the crypto boom in NYC. They have completed funding rounds totaling $1 billion and $750 millions, respectively.

Flipsider:

• Michael Shaulov from Crypto.com says that crypto is a popular investment option for many people. The Crypto winter

What You Need to Care About

As high-quality projects emerge, the burgeoning interest in crypto VCs will continue.

At 11%, Planned Cardano Blocks Size Increases to Meet Whale Demand

Input Output Hong Kong (IOHK), the development company behind the Cardano Network, has shared a proposal for increasing Cardano’s block size by 11%. The increase would see the network’s block size rise from 74KB to 80KB.

A larger block size means that more transactions can be added to transaction batches. Cardano will now have 14 million script memory units, up from 12.5million.

It is anticipated that the upgrade will increase the transaction throughput on Cardano’s network. IOHK announced that the Cardano mainnet upgrade would go live February 4, according to IOHK.

As Cardano works on its major mainnet upgrade, IntoTheBlock reports a 15,000% rise in Cardano wallets containing between 10,000 and 1,000,000 ADA. This was reported by IntoTheBlock since December 2021.

Flipsider:

• Despite substantial network improvement, Cardano “ADA” has yet to surpass its $1 consolidation level.

What You Need to Care About

Cardano, while not achieving its goal of becoming an Ethereum-Killer, has been steadily increasing its network performance.

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