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Crypto Funds Mark 3rd Consecutive Weeks Of Outflows With $435 Million In Withdrawals

Crypto investment products are now going through rough times, as shown by inflow and outflow data. The crypto market is known for its volatile market cycles of ups and downs. Investment products are now struggling, and confidence in the space seems shaken. Crypto funds have now seen outflows for three straight weeks, with investors pulling $435 million from digital asset funds last week, according to CoinShares data. The recent stretch of outflows highlights the souring investor sentiment around some digital assets after a bull run earlier this year.

The Third Consecutive Week Of Crypto Withdrawals

CoinShares’ recent weekly report on digital asset fund flows has revealed the current sentiment among institutional investors. According to the report, investment funds witnessed $435 million in outflows last week to mark the biggest outflow since March. This comes on top of the $206 million and $126 million pulled out in the previous two weeks. Unsurprisingly, the majority of outflows came from Bitcoin funds. Of the total $435 million outflows, $423 million came from Bitcoin funds. Notably, a bulk of Bitcoin’s outflows ($328 million) came from Spot Bitcoin exchange-traded funds (ETFs) in the US.

A look into previous crypto fund flow data since the beginning of the year shows that the majority of the inflows recorded in January, February, and March can be attributed to the Spot Bitcoin ETFs. These ETFs recorded so much inflow of funds that investment products were able to record their best year on record in less than three months. 

However, inflows into these ETFs have declined in the past few weeks, and the largest digital asset is now failing to attract inflows amidst interest rate stagnation in the US market. Grayscale’s GBTC, in particular, continued its run of withdrawals, recording $440 million in outflows. At the same time, the other ETFs failed to attract inflows during the week in order to offset these withdrawals. BlackRock’s IBIT, for instance, failed to register inflows for three days straight last week, bringing its 71-day run of inflows to an end. 

Ethereum, the altcoin king, also witnessed $38.4 million in outflows last week to offset inflows into other altcoins. Inflow data shows investors pouring $6.9 million worth of inflows into multi-coin investment products. Solana, Litecoin, XRP, Cardano, and Polkadot witnessed $4.1 million, $3.1 million, $0.4 million, $0.4 million, and $0.5 million in inflows, respectively. Short Bitcoin products also witnessed $1.3 million in inflows, showcasing a glimpse into investors’ sentiment.

What’s Next?

Investor sentiment can shift quickly in the fast-moving crypto space and the coming weeks may provide more clarity on the direction of crypto fund flows. Six Spot Bitcoin and Ether exchange-traded funds (ETFs) are set to launch in Hong Kong today April 30. Their entry into the Asian market has been long anticipated and is expected to surpass the first-day inflow record set by their counterparts in the US.

Crypto total market cap from Tradingview.com

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Crypto Analyst Says Altcoins Are About To Enter A Parabolic Curve, Here’s Why

Expectations for the crypto industry are still high, and altcoins, in particular, are expected to do well. One crypto analyst known as El Crypto Prof on X (formerly Twitter), shares this sentiment, expecting the altcoin market to go on a parabolic rally.

Altcoins Are Set To Explode

In a post on X (formerly Twitter), the crypto analyst highlighted why the altcoins market was said to explode. The chart attached to the post showed previous bull cycles for the crypto market and why the current muted performance from the market was normal.

For example, back in 2016, the crypto market went into accumulation mode after the Bitcoin halving, where altcoins stalled for a while before picking up. The same was the case in 2020 as well following the Bitcoin halving, with accumulation dominating the market for a few months before bouncing.

The same trend is repeating itself in 2024 after the Bitcoin halving was completed a week ago. Looking at the chart, the crypto analyst highlights this accumulation trend is happening once again. But this is not the only thing that is repeating itself.

Following each period of accumulation has been the backtest, and a successful confirmation above this point has always begun the altcoin rally. The analyst points out that this backtest is already happening, and from here, altcoins could see a significant explosion.

They further explain that if the trend continues like it did in 2016 and 2020, then the altcoins market could see “months of glory ahead.” This could easily see the total altcoin market cap double like it did in 2016 and 2020, and given the current market cap of around $1 trillion, the market cap is expected to cross $2 trillion. “Anyone who is bearish here obviously hasn’t done their homework,” the analyst warned.

Crypto Market Still Bullish

Despite the price declines that have rocked Bitcoin and altcoins over the month of April, the market remains bullish. One indicator of this is that the Crypto Fear & Greed Index continues to trend in the greed territory, meaning investors are still willing to put money in the market.

Rekt Capital, another crypto analyst, also backs up Crypto Prof’s analysis. The analyst also took to X (formerly Twitter) to reveal that the Bitcoin price is also in an accumulation phase, which he refers to as the “Re-Accumulation period.” However, the analyst believes that many will miss the subsequent breakout, saying, “Months from now, nobody will remember this Re-Accumulation period. But everybody will remember the Parabolic Phase that comes afterwards.”

Altcoins total market cap chart from Tradingview.com (Crypto)

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Ripple CEO Walks Back $5 Trillion Crypto Marker Prediction, Unveils New Target

The Chief Executive Officer (CEO) of Ripple, Brad Garlinghouse, has revised his earlier ambitious prediction on the crypto industry’s future market capitalization, acknowledging that he had underestimated the market’s potential surge. 

Ripple CEO Underpredicts Crypto Market Cap

Appearing in a recent interview with Fox Business, Garlinghouse shed light on the growth potential of the cryptocurrency market as well as its performance since the beginning of the year. 

The Ripple CEO was questioned about his previous optimistic forecast for the crypto industry’s market capitalization, in which he projected that the market cap would double to approximately $5 trillion by the end of the year. According to CoinMarketCap, the current global cryptocurrency market capitalization stands at roughly around $2.25 trillion. 

In response to the inquiry, Garlinghouse expressed his belief that his previous predictions were not overly ambitious, emphasizing the market’s potential for further growth. He admitted to underpredicting the industry’s potential market capitalization by the end of 2024, citing factors such as the current supply and demand dynamics driving additional increases. 

Garlinghouse noted that the current market conditions are characterized by increased demand and reduced supply, with these dynamics playing a significant role in the performance of cryptocurrencies. 

He disclosed that the Spot Bitcoin ETF market and the overall sentiment regarding Bitcoin’s value have significantly boosted demand for the cryptocurrency. Meanwhile, Bitcoin’s supply is diminishing due to the increasing number of large-scale investors purchasing the cryptocurrency rapidly. Additionally, the impending Bitcoin halving event is expected to further decrease the cryptocurrency’s supply. 

Assessing the current state of the crypto market, Garlinghouse stated that since the last six months, Bitcoin has been up by more than 250%, with further increases anticipated. He also asserted that this overperformance was largely driven by the approval and launch of Spot Bitcoin ETFs as well as the upcoming Bitcoin halving. 

Regulations Are Vital For Market Development

Garlinghouse has disclosed that establishing proper regulatory frameworks for the cryptocurrency market would yield positive outcomes for the market in the future. 

He explained that one of the primary factors hindering the growth of this evolving market was the United State’s prevailing anti-crypto stance, suggesting that the country’s enforcement actions on the developing industry were “problematic.”

The Ripple CEO highlighted several countries, including Dubai, Singapore and the United Kingdom, which have been proactively embracing cryptocurrencies and implementing proper regulatory systems to foster further growth in the market. 

Garlinghouse has asserted that the US has significantly lagged in recognizing the transformative and innovative impact of the cryptocurrency market, attributing this setback to the United States Securities and Exchange Commission (SEC) and its current Chair, Gary Gensler.

Crypto total market cap from Tradingview.com (Ripple CEO)

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United States Dominates Global Crypto Market With Massive $9.3 Billion In Profits

In a recent report by market intelligence firm Chainalysis, it has been revealed that global crypto gains in 2023 amounted to a staggering $37.6 billion. This profit surge reflects improved asset prices and market sentiment compared to 2022. 

Although this figure falls short of the $159.7 billion gains witnessed during the 2021 bull market, it signifies a significant recovery from the estimated losses of $127.1 billion experienced in 2022.

Sharp Surge In Crypto Gains

The report suggests that despite similar growth rates in crypto asset prices in 2021 and 2023, the total gains for the latter year were lower. According to Chainalysis, this discrepancy could potentially be attributed to investors’ decreased inclination to convert their crypto assets into cash. 

The analysis further suggests that investors in 2023 seem to have anticipated further price increases, as crypto asset prices did not exceed previous all-time highs (ATHs) during the year, unlike in 2021.

Crypto

Cryptocurrency gains remained relatively consistent throughout 2023, except for two consecutive months of losses in August and September, as seen in the image above. However, gains surged sharply thereafter, with November and December eclipsing all previous months.

United States Leads

Leading the pack in cryptocurrency gains was the United States, with an estimated $9.36 billion in profits in 2023. The United Kingdom secured the second position with an estimated $1.39 billion in crypto gains. 

Notably, several upper and lower-middle-income countries, particularly in Asia, such as Vietnam, China, Indonesia, and India, achieved significant gains, each surpassing $1 billion and ranking within the top six countries worldwide. 

Crypto

Chainalysis had previously observed strong cryptocurrency adoption in these income categories, particularly in “lower-middle-income” countries, which demonstrated resilience even during the recent bear market. The gains estimates indicate that investors in these countries have reaped substantial benefits from embracing the asset class.

Ultimately, the Chainalysis report suggests that the positive trends observed in 2023 have carried over into 2024, with prominent cryptocurrencies such as Bitcoin (BTC) hitting all-time highs of $73,700 following the approval of Bitcoin exchange-traded funds (ETFs) and increased institutional adoption. 

If these trends persist, the firm believes that it is conceivable that gains in 2024 will align more closely with those witnessed in 2021. 

Crypto

As of this writing, the total crypto market cap valuation stands at $2.5 trillion, a sharp drop of over 4% in the last 24 hours alone, and down from Thursday’s two-year high of $2.7 trillion. Bitcoin, on the other hand, is trading at $68,400 after dropping as low as $65,500 but has quickly regained its current trading price, limiting losses to 4% over the past 24 hours.

Featured image from Shutterstock, chart from TradingView.com 

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Crypto Payments Soared To Unprecedented Levels In 2023, CoinGate Report Reveals

The year 2023 witnessed a remarkable surge in crypto payments, signaling a significant milestone in adopting digital currencies for retail and e-commerce transactions. 

According to a recent report by CoinGate, a crypto payment processor firm, the number of crypto payments processed reached staggering heights, showcasing robust growth and diversification in the crypto landscape. 

Massive Surge In Crypto Payments

In 2023, CoinGate processed an astounding 1,294,058 cryptocurrency payments, marking a 39.4% increase compared to the previous record. This exponential growth, equivalent to one payment every 24 seconds, underscores the accelerating pace of crypto adoption. 

Notably, approximately one-third (32.35%) of all transactions processed by CoinGate in the last ten years occurred in 2023, emphasizing the surge in the popularity of digital currencies.

Per the report, integrating Binance Pay wallet into CoinGate’s payment services in March 2023 played a significant role in driving this growth. 

Crypto

Binance Pay accounted for 8.2% of all crypto payments in 2023, showcasing a steady increase in usage throughout the year. This upward trend, from 4.5% in March to 13% in December, indicates the growing adoption and usage of Binance Pay as a preferred payment method.

Lightning Network Surges In Popularity

Moreover, CoinGate’s report highlights the increasing maturity and acceptance of the Lightning Network, an essential component of Bitcoin payments. 

In 2023, the Lightning Network facilitated 7.8% of all Bitcoin payments processed by CoinGate, representing a notable increase from previous years. 

Furthermore, the overall number of Lightning Network payments grew by 35.9% compared to the previous year, indicating a growing reliance on this technology. 

However, Bitcoin, long considered the dominant cryptocurrency for payments, saw a decline in its share of total transactions processed by CoinGate. While Bitcoin accounted for 54.8% of all transactions in 2021, its share dropped to 35.6% in 2023. 

Stablecoins, particularly Tether’s USDT, emerged as a popular choice for crypto payments in 2023. The usage of USDT increased from 15.1% in 2022 to an average of 25.4% in 2023, indicating a shift towards stablecoins due to their perceived stability and reliability. 

Alternative Payment Solutions 

According to CoinGate’s report, crypto-friendly merchants experienced remarkable success in 2023, with a significant portion of their sales attributed to cryptocurrency payments. 

Eldorado.gg, a gold and accounts marketplace for gamers, reported crypto payments contributing to 3% of their total sales. IPRoyal, a proxy service provider, saw over 30% of their payments made in cryptocurrencies. 

Hostinger, a web hosting provider, captured nearly one-fourth of all crypto-paying customers, showcasing the effectiveness of alternative payment solutions in catering to diverse customer needs.

Overall, 2023 demonstrated a paradigm shift in the adoption of cryptocurrency payments. The surge in transactions processed by CoinGate, the increasing usage of Binance Pay and the Lightning Network, and the diversification of cryptocurrencies used for payments all point towards a new era of acceptance and trust in digital currencies. 

As crypto-friendly merchants reap the benefits of embracing these payment methods, it becomes evident that cryptocurrency payments offer sales growth, solutions for the unbanked population, and global accessibility. 

With the stage set for further expansion in 2024, the transformative power of cryptocurrency payments continues to reshape the retail and e-commerce landscape.

Crypto

Featured image from Shutterstock, chart from TradingView.com 

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Top 3 Altcoins For November 2023 That Could 100x Your Crypto Portfolio

Altcoins have become one of the most preferred ways for crypto investors to secure massive gains in the industry especially given Bitcoin’s massive growth rate in the last decade. Because a lot of these altcoins have significantly smaller market caps, they tend to have a lot of runway for growth, making them an enticing option. So here is a list of the top 3 altcoins that could 100x your crypto portfolio in the coming bull market, in no particular order.

Memecoin (MEME): The New Meme Crypto

Memecoin (MEME) is the latest brainchild from the 9GAG team. The team had successfully launched multiple non-fungible token (NFT) projects in the last year before finally moving on to the launch of their very own cryptocurrency; MEME.

So far, MEME looks to be like any other meme coin in the crypto market with no promises or roadmap. But as far as altcoins go, MEME has one of the most important factors that can guarantee success for a project and that is a very strong community.

The Memecoin official Twitter account already has 2.8 million followers, surpassing established meme coin players such as Floki Inu and falling just behind Shiba Inu which sits at 3.7 million followers. This massive support from the community, coupled with the fact that its market cap is sitting at only $180 million, makes it one of the altcoins with a lot of potential going into the bull run.

Liquity (LQTY) Joins Altcoins With Potential

Liquity (LQTY) has made a name for itself as being one of the decentralized finance (DeFi) protocols offering interest-free borrowing on the Ethereum network. This is a good draw for investors looking to take out loans but not having to pay huge interest on those loans.

In the DeFi summer that was recorded between 2020 and 2021, these kinds of protocols were proven to be an investor favorite. As such, their native tokens are wont to soar if there is a repeat of such a trend.

LQTY token is still trading below $2 and just like MEME, it has a low market just above $150 million. This makes it one of the altcoins with a good runway to grow especially in a bull market and secure good gains for crypto investors.

Liquity (LQTY) price chart from Tradingview.com (Altcoins crypto Shiba Inu Memecoin MEME)

Shiba Inu’s BONE Could Be A Game Changer

For years, the Shiba Inu-based BONE token has been able to fly under the radar and has not achieved the notoriety of some of its meme coin counterparts. However, this could quickly change especially with the launch of the Shibarium network.

Shibarium, which is a Layer 2 network built atop the Ethereum blockchain, actually uses the BONE token as its ecosystem utility token. Many expected this to be Shiba Inu but the team has clarified that SHIB only acts as a governance token in the network.

Given that BONE is the native token of the Shibarium network, it stands to gain a lot when the network begins to gain widespread adoption. And with a market cap under $160 million, there is still a long way to go for BONE to catch up with its competitors in the space.

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Report Reveals Crypto Whale Center With Majority Of Transactions Crossing $1 Million

A report from blockchain data analytics platform Chainalysis has revealed that the majority of crypto transactions in the United Arab Emirates (UAE) from July 2022 to June 2023 have been whale transactions, crossing over $1 million each. 

Majority Of UAE Crypto Transactions Exceeds $1 million 

The report from Chainalysis reveals that institutional investments accounted for the majority of cryptocurrency transactions in the UAE with over 67% from July 2022 to June 2023. 

The Institutional investments in the country range from $1 million, followed by professional investments ranging from $10,000 to $1 million, and retail investments which accounted for just 4.63% of cryptocurrency transactions in the country up to $10,000.

Kim Grauer, the Director of Research at Chainalysis shed more light on this significant trend noting that the report marks a significant interest among organizations and high-net-worth individuals in the UAE to add cryptocurrency to their investment portfolios.

“The fact that by far the larger portion of crypto investments in the UAE is for institutional and professional-sized transactions, indicates an eagerness from organizations and high-net-worth individuals to add cryptocurrency to their investment portfolios. This market confidence is validation of the efforts being made by the country’s leadership to offer commendable regulatory clarity, and establish the nation as a global crypto hub,” the director said.

The report shows that UAE was one of the only countries in the MENA (Middle East and North Africa) region to spot a higher share of crypto activity within the decentralized exchanges than centralized exchanges. The country’s decentralized exchanges activity was over 48% with centralized exchanges accounting for 46%.

So far, the country’s crypto market value dropped by 17% over the past year accounting for over $34 billion in crypto market value this year. However, the country still managed to outperform other countries in the MENA region.

The Decentralized Finance (DeFi) sector has also seen tremendous popularity in the country since 2022. This further proves that the country has been successful in passing innovation-friendly regulatory frameworks that allow the development of innovative cryptocurrency platforms in the country, with a direction that keeps consumers safe.

The country also displayed its interest in Non-Fungible Tokens (NFTs) over time. The report revealed that the country had an impressive number of over 4 million web traffic visits across NFT sites from July 2022 to June 2023, despite the fast declination of NFTs since 2022.

Crypto whale NFT

Chainalysis Cryptocurrency Adoption Ranking

On September 12, 2023, Chainalysis released an excerpt based on a variety of parameters to determine the grassroots crypto adoption. The excerpt revealed that most of the countries leading the charge are from the Central & Southern Asia and Oceania (CSAO) region.

According to the excerpt, six countries from the CSAO region are among the top 10 leading countries. These include India, Vietnam, the Philippines, Indonesia, Pakistan, and Thailand.

The lower middle-income (LMI) countries were identified to be leading the way in grassroots crypto adoption around the world since last year.

The excerpt was released following the data analysis of 154 countries across five sub-indexes around the world. The rankings were then determined by each country’s geometric mean in all five areas, crypto purchasing power, and population strength.

Crypto total market cap chart from Tradingview.com (whale center chainalysis)

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Analyst Presents 4 Charts That Prove Crypto Is Not Dead

As the crypto market faces constant volatility challenges and regulatory pressures, major cryptocurrencies have experienced significant declines and slowed growth over the years. However, a new chart report has revealed that despite these downward trends, the crypto industry is still achieving new milestones in terms of adoption. 

Chart Reveals Crypto Adoption On The Rise

The broader crypto market has been recovering at a snail’s pace since the crypto crash in 2021. Cryptocurrencies were at their peak during this time, and Bitcoin had the highest growth rate, reaching a price of over $60,000 while Ethereum’s price was around $4,000. 

However, the upward trend was short-lived and the industry was hit with many challenges including regulatory hurdles that restricted its advancement into different regions and market forces which constantly caused instability in crypto prices. 

Amid all this, DeFi Researcher, Thor Hartvigsen has presented in an X (formerly Twitter) post, chart reports that display the continuous growth in adoption of the crypto industry despite negative trends in the ecosystem. 

Hartvigsen disclosed the four charts showed an increase in crypto adoption in the industry. One of the charts shows a spike in total daily wallets for users in the Ethereum and Layer 2 (L2) landscape which was previously in a bear market.

Another chart reveals a surge in traction in decentralized stablecoins which have been in decline since August 2022. 

The third chart illustrates Ethereum’s growth rate over the years, surpassing $10 billion in revenue and promoting the emergence of innovative businesses in the crypto industry.

The last chart shows liquid staking at an all-time high, growing from $7.9 billion to more than $20 billion in 2023. This report also adds to recent data which revealed a spike in liquid staking platforms in the United States after hitting 370,000 Ether (ETH) in only five days and reaching a new milestone of $20 million staked ether. 

Crypto total market cap chart from Tradingview.com

Major Incentives Driving Growth Rates

The evolution of the crypto industry has been pushed back a couple of years following the Terra Luna crash which saw one of the largest stablecoins declining by 99%. 

After the LUNA crash, the crypto industry suffered another loss from the FTX descent and insolvency. The industry has been under scrutiny by major regulatory authorities like the United States Securities and Exchange Commission (SEC). 

There have also been multiple crypto scams, rug pulls, and cyber attacks over the years on major exchange platforms and marketplaces in the industry. 

Presently, the crypto industry is slowly gaining back its strength and advancing rapidly, as seen in some major innovative developments like the integration of spot Bitcoin ETFs, and Ethereum spot ETFs.

The ecosystem is also thriving with new infrastructure upgrades and improvements in the DeFi ecosystem, ensuring the sustainability and longevity of the industry.

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New Reports Shows How Much Capital Was Pulled Out Of Crypto In August

The crypto industry is known for its sheer price movement volatility, driven mainly by events and liquidity crunches. Since the beginning of the year, there has been a noticeable and consistent outflow of cash from the cryptocurrency market, which is unsurprising. 

According to Bitfinex’s latest report, this capital drain was evident in August, as the crypto market saw an exit of about $55 billion in capital from major cryptocurrencies.

$55 Billion Drained In The Past Month

Bitfinex’s analysis, which measured the aggregate realized value metric of Bitcoin (BTC), Ethereum (ETH), and major stablecoins like Tether’s USDT, USD Coin (USDC), BUSD, Dai, and TrueUSD (TUSD), indicates that about $55 billion in capital exited the market in August.

Although the market struggled for most of the first half of the year, things became different in July as Bitcoin spearheaded inflows. During this period, Bitcoin crossed $30,000 for a while as over $100 billion has entered the market. However, the momentum changed in early August, as profit-taking and continued mixed signals from the US economy triggered outflows. 

“A deep dive into the data reveals a prevailing trend: by early August, the industry had begun to experience capital outflows,” said the report.

Interest from institutional investors during this period, especially, started to wane as digital asset investment funds registered outflows after four weeks of heavy inflows. The trend has continued to the time of writing, as the run of outflows now totals $294 million. 

What Caused The Crypto Capital Drain?

The report from Bitfinex shows that August’s capital drain was the biggest this year, especially for Bitcoin. Most of this drain came from two isolated events, resulting in immense price movement in a relatively short period. In particular, the August 17 flash crash saw Bitcoin’s price drop by 11.4% in a few hours. 

“August was the largest red monthly candle for BTC since the bear market bottom was formed in November 2022 at –11.29 percent as per Bitfinex Data.”

The crypto derivative market has also had a similar trajectory. Ether (ETH) futures and options markets have slowed considerably in 2023. The average daily trading volume is down almost 50% from the two-year average to $14.3 billion daily. 

Bitcoin has also seen some liquidity crunches, as data shows almost 69% of all mined Bitcoin have not moved in over a year. On the other hand, this suggests a high conviction from investors and a buoyant outlook on the future of the digital currency. 

September has been relatively quiet regarding price movement, and the industry awaits the beginning of the next bull market. However, this crypto exchange founder believes that a bull run already started in March but the market is yet to catch on.

Crypto total market cap chart from Tradingview.com

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Ledger Users Can Now Buy Crypto Directly Using PayPal

PayPal has taken another step in its crypto mission following a team-up with hardware wallet provider Ledger. This time around, the payments giant is making it possible for users to purchase crypto directly without the need for extra verifications.

Ledger Live Integration With Paypal

On August 16, Ledger and PaPal announced an integration to make buying cryptocurrencies easier. This feature will allow users to purchase crypto using PayPal directly from the Ledger Live app.

Chairman and CEO Pascal Gauthier of Ledger made a statement about integrating Ledger Live with Paypal to make crypto transactions easier.

“Both PayPal and Ledger are focused on creating secure, seamless, and fast transactions no matter where you are in the world. PayPal,” Gauthier said. “We’re combining the uncompromising security of Ledger with PayPal’s leadership in protected payments technology to help facilitate a seamless platform for user crypto transactions.”

Ledger Live’s integration with Paypal currently offers four cryptocurrencies in the US, such as Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC), and this will allow US residents to be able to purchase these cryptocurrencies with their verified Paypal accounts with no extra verification required.

What makes this integration so interesting is that no “withdrawal” process needs to be initiated by a user. All the crypto purchases made through Paypal via Ledger Live are immediately sent to the user’s wallet, according to the announcement.

PayPal stock price chart from Tradingview.com (Ledger Live)

Ledger Live’s integration with Paypal is indeed a significant step in the financial tech world, as the two giants share a similar vision of creating fast and seamless transactions on a universal scale.

Ledger is one of the most notable hardware wallet manufacturers, recording over 6 million Ledger Nano hardware wallet sales all around the world since 2016. Also, Ledger launched its Tradelink service in 2023 that will enable “off-exchange trading, enhanced security, distribution of risk, zero transaction fees, and a more efficient and faster trading” for institutional investors.

Paypal’s interest in the crypto world is by no means new. On August 7, Paypal made an announcement to launch its own Ethereum-based stablecoin called PYUSD. 

However, nothing was said about PYUSD being listed as one of the coins that will be available on the Ledger Live just yet.

PYUSD’s launch has not been smooth either with regulators calling for more oversight following the launch. Last week, US congresswoman Maxine Waters called for federal oversight and enforcement of PayPal after launching the stablecoin.

PayPal also revealed plans to allow select customers to purchase cryptocurrencies such as Bitcoin and Ethereum using PYUSD. However, amid the new UK regulatory system that will come into play on October 8, Paypal plans to temporarily pause the buying of cryptocurrencies in the country from October 1 to resume crypto services in the Q1 of 2024.

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Crypto Payments Gain Ground In Canada As Confidence Grows

A recent study by the Bank of Canada (BoC) revealed that crypto ownership in the country had slowed over the past two years. However, recent sentiment from Coinbase’s Country Director for Canada, Lucas Matheson, suggests Canadians are slowly warming up to crypto again. 

Canadians Adopting Crypto Payments

In a conversation with Cointelegraph, Matheson mentioned that Canadians’ outlook towards digital assets is changing as they adopt it to make daily transactions. This means that crypto in the country is garnering mass adoption as service providers and consumers are using it to facilitate payment of goods and services. 

Furthermore, Matheson believes that more daily use cases will arise that will be “digital asset-backed.” This belief could stem from the fact that the tokenized industry is rapidly growing with many real-world assets (RWA) being brought on-chain.  Many industries are expected to be disrupted with the help of blockchain technology and non-fungible tokens (NFTs).

The E-commerce industry is one that Matheson has singled out to be significantly impacted by NFTs. He said the major use case would be “phygital” items, where fashion brands create the tokenized version of their physical products. Popular brands like Nike and Lacoste are known to have ventured into the metaverse with the introduction of their tokenized wear. 

Coinbase And Key Regulations Integral

Matheson emphasized the importance of regulatory certainty and how Coinbase is contributing to the crypto industry’s growth in Canada. According to him, the crypto exchange was working closely with the Canadian authorities to build trust and help them understand the role of digital assets in building a sustainable economy.

Coinbase officially launched in the Canadian market on August 14. The company announced that it had partnered with local banks and payment platforms to ensure easy fiat on-ramp and make crypto more accessible to Canadians. Furthermore, Coinbase rolled out its Interac payment rails to enable local users “seamlessly deposit and withdraw funds (CAD) to and from their Coinbase wallets…”

Meanwhile, Canada’s lawmakers have shown commitment to backing the crypto industry in the country by providing regulatory certainty to stakeholders in the industry. In June, the Canadian House of Commons Parliamentary Standing Committee on Industry and Technology published a report highlighting the positive impacts blockchain technology could have on the economy and the need to provide regulatory clarity and protect the interests of consumers. 

The report also proposed an innovative regulatory approach for cryptocurrencies, emphasizing how Canada could become a leader in the crypto economy. 

With such efforts from Coinbase accompanied by regulatory certainty, Crypto adoption is bound to grow. Interestingly, the Ontario Securities Commission (OSC) claims that over 30% of Canadians plan to buy crypto by 2024.

Crypto total market cap chart from Tradingview.com (Canada)

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Bank Of Canada Study Shows Crypto Ownership In The Country Fell In The Last 2 Years

A recent study by the Bank of Canada (BoC) has shown a decline in the ownership of cryptocurrencies over the two years. The BoC has attributed this decline in crypto ownership to ecosystem collapses, regulatory hurdles, and price depreciation.

Bitcoin’s Decline Most Notable

According to the Bitcoin Omnibus Survey, Bitcoin’s ownership across the country dipped to 10% at the end of last year. This decline has been attributed to various factors, including the significant drop from its all-time high due to the current market conditions, especially since Bitcoin’s price crashed over 50% from its all-time high of $69,044.77 last year. 

The survey also cited FTX’s unexpected collapse as contributing to the decline, as it prompted enhanced scrutiny from regulators while also creating doubts in the hearts of crypto investors.

The decline in Bitcoin ownership wasn’t a result of investors moving their money to other crypto assets given that altcoins also suffered a similar fate to Bitcoin, as ownership in these digital assets also experienced a downward trend last year.

The report read:

Investors did not appear to shift out of Bitcoin and into other cryptoassets, as we observe decreased ownership of altcoins.

There are some positives for Bitcoin and the crypto ecosystem, as Bitcoin’s ownership is still higher than the 8% recorded between 2018 and 2020. Another silver lining is that many locals are aware of Bitcoin (meaning they could invest in it in the near future), as general awareness of the token has been at an impressive 90%.

However, despite being aware of the term Bitcoin, many Canadians still don’t understand how the cryptocurrency operates. According to the BoC’s research methodology, 61% of non-bitcoin owners showed low crypto literacy. Meanwhile, a meager 30% of Bitcoin owners exhibited high-level crypto literacy. 

Crypto total market cap chart from Tradingview.com

Financial Literacy Doesn’t Equate To Crypto Enthusiasm

Many would have predicted that persons with higher financial literacy would be more bullish on Bitcoin and other crypto assets. However, that isn’t the case in Canada, according to the survey. Interestingly, respondents with a high financial literacy were the ones who were quick to exit the crypto market. In contrast, those with a lower financial literacy remained bullish despite the market conditions and regulatory concerns. 

While these figures may not be so encouraging, there is enough reason to believe that the growing adoption of cryptocurrencies worldwide will impact the future of crypto ownership in the country as more locals gain crypto literacy. 

Furthermore, efforts from the authorities to provide regulatory clarity could also help as it will boost investors’ confidence in the country and consequently increase crypto ownership in the country.

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Can Russia Circumvent EU Sanctions Through Cryptocurrency?

Russia has seemingly turned to cryptocurrency since the West decided to ‘punish’ the nation for its invasion of Ukraine. A list of sanctions had been imposed upon the country by the United States and the EU which worked to essentially cut Russia off from world traders. However, with the rise in popularity of crypto, it has provided a possible way for the country to evade these sanctions which would have otherwise stuck when fiat currencies were the only form of payment.

Why Russia Could Turn To Cryptocurrency

One thing that has drawn investors to cryptocurrencies such as Bitcoin is the fact that they are decentralized. A decentralized currency is not controlled by an entity. Hence, sanctions do not apply to them regardless of how severe they are. This has made it attractive to those who want to evade detection by governments, or in this case, countries trying to circumvent sanctions.

Lately, Russia has been warming up to crypto as a way to foster trade around the sanctions. The most prominent of these have been the sanctions on Russian gas purchases, which breeds the possibility of the country accepting crypto as a form of payment for their oil and gas. By using a cryptocurrency such as Bitcoin, Vladimir Putin could be able to completely evade these sanctions and the established banking system. 

Back in September, the US Treasury’s assistant secretary for Terrorist Financing and Financial Crimes, Elizabeth Rosenberg, told lawmakers that it was possible for the Kremlin to actually evade sanctions levied against it. Senator Elizabeth Warren also echoed this concern, pointing to the fact that there was already widespread use by North Korea to evade sanctions, and it was just as easy for Russia to do the same.

Crypto total market cap chart from TradingView.com

Market cap at $984 billion | Source: Crypto Total Market Cap on TradingView.com

Still An Important Player

Even though there are currently sanctions against Russia, the EU still relies heavily on the supply of oil and gas from the Kremlin. Companies in Europe, although they have shown support for Ukraine in the war, continue to quietly acquire products from Russia.

Given this, it is not a stretch to say that Russia would have an abundance of customers if it were to switch to crypto payments for its oil and gas. It is already an established player in the oil and gas industry and companies will not have an easy go of it having to change suppliers. So it would make sense to go through the relatively small inconvenience of converting fiat to crypto to pay Russia than spending millions of dollars to change international suppliers.

Russia is already softening its stance on cryptocurrencies since the war started. In September, it was reported that the government had reached an agreement with the central bank on a rule that would allow residents to carry out cross-border payments using crypto. Trade Minister Denis Manturov said back in May that the country would legalize digital asset payments “sooner or later.”

Featured image from PYMNTS, chart from TradingView.com

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