An simple guide to Decoding Traces Data
In this guide, we'll explore how to use traces to analyze transaction behavior, and gain a deeper understanding of smart contract execution.
Going Beyond Vanity Metrics
When it comes to measuring real crypto user adoption, vanity metrics- like active addresses and transaction counts, don’t tell the whole story. We have to go beyond quantity to measure quality and user behaviour.
A Primer on Smart Accounts
From EOAs to Programmable Smart Accounts: What They Are, How They Work, and Why It Matters
Leverage onchain data to discover what people are doing in crypto, why and how to maximize the trend.
An simple guide to Decoding Traces Data
In this guide, we'll explore how to use traces to analyze transaction behavior, and gain a deeper understanding of smart contract execution.
Going Beyond Vanity Metrics
When it comes to measuring real crypto user adoption, vanity metrics- like active addresses and transaction counts, don’t tell the whole story. We have to go beyond quantity to measure quality and user behaviour.
A Primer on Smart Accounts
From EOAs to Programmable Smart Accounts: What They Are, How They Work, and Why It Matters
Leverage onchain data to discover what people are doing in crypto, why and how to maximize the trend.
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Since the mining of the Bitcoin genesis block in 2009 and the approval of the first Bitcoin ETF by the US Securities and Exchange Commission (SEC) in 2024, the cryptocurrency market has grown too big to be ignored.
Early market innovators and investors drove the events that unfolded between 2009 and 2021. The 2022/23 bear market provided an opportunity to address the gap (chasm) related to regulatory clarity, product-market fit, and user experience and education. Developments in 2024, show the market is poised for mainstream adoption.
For starters, the S-curve is a way to visualize how a new technology or product is adopted by a population over time. It's shaped like the letter S because adoption starts slowly, then accelerates rapidly, and finally plateaus as it reaches saturation. In this context, we will use the Bitcoin S-curve as a proxy for our discussion on crypto adoption.
The story of Bitcoin and cryptocurrencies closely follows the S-curve, with key milestones and events shaping their evolution.
The Age of Innovators (2009-2013)
In its infancy (2009-2013), cryptocurrencies garnered little attention beyond a small group (around 2.5%) of tech enthusiasts and innovators like Satoshi Nakamoto, who saw its potential as a revolutionary technology. At this point, BTC was considered illegal for its role in the Silk Road marketplace.
Early Adopters (2013-2021)
In 2013, Bitcoin's price rose from approximately $13.40 to $754, attracting early investors and leading to the development of cryptocurrency exchanges like Coinbase and Mt. Gox. This period also saw the emergence of altcoins like Ethereum and increased media coverage of the crypto industry, capturing the interest of roughly 13.5% of early adopters.
By the end of 2021, Bitcoin was trading at around $47,000, representing a more than 350x price appreciation for early adopters. This surge attracted the attention of institutional investors (like Tesla and BlackRock) and regulatory agencies like the US SEC.
Crossing the Chasm (2022-2024)
The fall of bad actors like FTX and Luna led the industry into the 2022 bear market and the opportunity to cross the “chasm”—the gap between early adopters and the mainstream majority.
It was a much-needed break that helped builders in the industry achieve product-market fit, and improve user experience and education while working with relevant authorities to establish clear regulations.
Bitcoin investment firm, Unchained, surveyed traditional investors to understand why they would consider buying crypto in 2024.
Considering their responses and recent developments in the crypto industry, it appears we're addressing many of the adoption barriers, and we can expect continued growth.
The US Securities and Exchange Commission (SEC) approved the trading of 11 spot Bitcoin ETFs on January 10th, 2024. Over $12 billion has already been invested in these products, with traditional institutions like BlackRock, Ark Invest, and Fidelity leading the charge. Notably, Wisconsin became the first US state to invest in a Bitcoin spot ETF, with more states likely to follow.
In a similar move, the SEC approved all spot Ethereum ETF applications on May 23rd, marking a significant milestone for the crypto industry. While trading hasn't yet begun, the ETF is expected to be a major catalyst for this cycle's bull run.
Crypto adoption isn't limited to the US. Regulators in Hong Kong also approved the trading of spot Bitcoin and Ethereum ETFs. This international acceptance signifies a growing global shift towards cryptocurrencies.
Politically, the crypto industry's influence on US politics is undeniable as the November elections approach. Notably, Donald Trump has declared his intention to make the US a pro-crypto nation. While his campaign has received over $32 million in crypto-related support, it's important to consider the broader political landscape and potential policy changes.
All of these developments and more, indicate that crypto builders, regulators, and institutional investors are collaborating to create a safer environment for the mainstream adoption of crypto.
To understand the potential impact of these events on crypto's future, let's consider the Diffusion of Innovations Theory. This theory states that:
“The amount of time it takes for most new tech to get embraced by 10% of the population is roughly the same amount of time it takes to go from 10% to 90% adoption.
This is exemplified in the adoption of computers. Apple invented the personal computer (PC) in 1976. In 1980, about one-tenth of 1% of households owned a PC. By 1990, 10% of households owned PCs. And by 2000, 90% of households had a PC.
Insights from Off the Chain Capital show that it took Bitcoin about 10 years (from 2009 to 2019) to reach 10% of households in the US. As of 2024, 25% of Americans reportedly own Bitcoin. If the Diffusion of Innovations Theory holds, Bitcoin adoption could reach 90% by 2029.
With clearer regulations on the horizon and institutional investors entering the market, it is safe to state that we are in the early phase of adoption by the mainstream market. Soon, everyone from your Cab Driver to Grandma will start asking about crypto. When you see these signs, know that mass adoption is here.
Don't let the price fluctuations deter you. Builders are shipping, regulators are working, institutional investors are buying, and the next billion users are being onboarded. Don’t be a laggard—find your place in the industry and play the long-term game, and crypto will reward you with generational wealth.
Stay curious and I will write to you in the new week.
Chris...
Since the mining of the Bitcoin genesis block in 2009 and the approval of the first Bitcoin ETF by the US Securities and Exchange Commission (SEC) in 2024, the cryptocurrency market has grown too big to be ignored.
Early market innovators and investors drove the events that unfolded between 2009 and 2021. The 2022/23 bear market provided an opportunity to address the gap (chasm) related to regulatory clarity, product-market fit, and user experience and education. Developments in 2024, show the market is poised for mainstream adoption.
For starters, the S-curve is a way to visualize how a new technology or product is adopted by a population over time. It's shaped like the letter S because adoption starts slowly, then accelerates rapidly, and finally plateaus as it reaches saturation. In this context, we will use the Bitcoin S-curve as a proxy for our discussion on crypto adoption.
The story of Bitcoin and cryptocurrencies closely follows the S-curve, with key milestones and events shaping their evolution.
The Age of Innovators (2009-2013)
In its infancy (2009-2013), cryptocurrencies garnered little attention beyond a small group (around 2.5%) of tech enthusiasts and innovators like Satoshi Nakamoto, who saw its potential as a revolutionary technology. At this point, BTC was considered illegal for its role in the Silk Road marketplace.
Early Adopters (2013-2021)
In 2013, Bitcoin's price rose from approximately $13.40 to $754, attracting early investors and leading to the development of cryptocurrency exchanges like Coinbase and Mt. Gox. This period also saw the emergence of altcoins like Ethereum and increased media coverage of the crypto industry, capturing the interest of roughly 13.5% of early adopters.
By the end of 2021, Bitcoin was trading at around $47,000, representing a more than 350x price appreciation for early adopters. This surge attracted the attention of institutional investors (like Tesla and BlackRock) and regulatory agencies like the US SEC.
Crossing the Chasm (2022-2024)
The fall of bad actors like FTX and Luna led the industry into the 2022 bear market and the opportunity to cross the “chasm”—the gap between early adopters and the mainstream majority.
It was a much-needed break that helped builders in the industry achieve product-market fit, and improve user experience and education while working with relevant authorities to establish clear regulations.
Bitcoin investment firm, Unchained, surveyed traditional investors to understand why they would consider buying crypto in 2024.
Considering their responses and recent developments in the crypto industry, it appears we're addressing many of the adoption barriers, and we can expect continued growth.
The US Securities and Exchange Commission (SEC) approved the trading of 11 spot Bitcoin ETFs on January 10th, 2024. Over $12 billion has already been invested in these products, with traditional institutions like BlackRock, Ark Invest, and Fidelity leading the charge. Notably, Wisconsin became the first US state to invest in a Bitcoin spot ETF, with more states likely to follow.
In a similar move, the SEC approved all spot Ethereum ETF applications on May 23rd, marking a significant milestone for the crypto industry. While trading hasn't yet begun, the ETF is expected to be a major catalyst for this cycle's bull run.
Crypto adoption isn't limited to the US. Regulators in Hong Kong also approved the trading of spot Bitcoin and Ethereum ETFs. This international acceptance signifies a growing global shift towards cryptocurrencies.
Politically, the crypto industry's influence on US politics is undeniable as the November elections approach. Notably, Donald Trump has declared his intention to make the US a pro-crypto nation. While his campaign has received over $32 million in crypto-related support, it's important to consider the broader political landscape and potential policy changes.
All of these developments and more, indicate that crypto builders, regulators, and institutional investors are collaborating to create a safer environment for the mainstream adoption of crypto.
To understand the potential impact of these events on crypto's future, let's consider the Diffusion of Innovations Theory. This theory states that:
“The amount of time it takes for most new tech to get embraced by 10% of the population is roughly the same amount of time it takes to go from 10% to 90% adoption.
This is exemplified in the adoption of computers. Apple invented the personal computer (PC) in 1976. In 1980, about one-tenth of 1% of households owned a PC. By 1990, 10% of households owned PCs. And by 2000, 90% of households had a PC.
Insights from Off the Chain Capital show that it took Bitcoin about 10 years (from 2009 to 2019) to reach 10% of households in the US. As of 2024, 25% of Americans reportedly own Bitcoin. If the Diffusion of Innovations Theory holds, Bitcoin adoption could reach 90% by 2029.
With clearer regulations on the horizon and institutional investors entering the market, it is safe to state that we are in the early phase of adoption by the mainstream market. Soon, everyone from your Cab Driver to Grandma will start asking about crypto. When you see these signs, know that mass adoption is here.
Don't let the price fluctuations deter you. Builders are shipping, regulators are working, institutional investors are buying, and the next billion users are being onboarded. Don’t be a laggard—find your place in the industry and play the long-term game, and crypto will reward you with generational wealth.
Stay curious and I will write to you in the new week.
Chris...
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