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Ferrari Fuels Crypto Revolution, Accepts Payments In Cryptocurrencies

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The premier luxury sports car manufacturer, Ferrari, is accelerating its adoption of cryptocurrency. As per the recent report, the company enables customers in the United States to buy their top-tier vehicles using cryptocurrencies such as Bitcoin and Ethereum. Furthermore, it intends to extend this crypto payment feature to European markets in response to robust demand from its customer base.

Renowned Chinese crypto journalist Colin Wu revealed on the X platform that Ferrari, known for its high-performance cars, now accepts cryptocurrency payments such as Bitcoin, Ethereum, and USDC stablecoin for transactions in the United States. This groundbreaking step caters to the rising interest from their wealthy clientele, including investors and conventional buyers seeking portfolio diversification.

Enrico Galliera, Chief Marketing and Commercial Officer explains that this foray into cryptocurrency aligns with the company’s commitment to achieving carbon neutrality by 2030. Furthermore, he highlights the cryptocurrency sector’s efforts to reduce its carbon footprint through software innovations and renewable energy usage.

Ferrari Targets New Audience with Crypto Purchase 

Ferrari’s ambition extends beyond embracing cryptocurrency; they aim to connect with a wider audience and attract prospective customers who may not have previously considered owning one of their prized vehicles. While specific details regarding the number of cars available for cryptocurrency transactions remain undisclosed, Galliera emphasizes the strength of its order portfolio, with bookings secured well into 2025.

Ferrari partnered with BitPay, a prominent cryptocurrency payment processor, to facilitate this crypto venture. BitPay will immediately convert cryptocurrency payments into traditional currency, safeguarding dealers and the company from the notorious volatility of the digital asset market.

What sets Ferrari apart in this endeavor is their commitment to providing a seamless experience for customers. Using cryptocurrency to purchase a car comes without additional fees or surcharges, ensuring the transition to this new payment method is as smooth as one of their finely tuned engines.

Ferrari’s crypto payment system will extend its reach to European markets by the first quarter of the upcoming year. The company also plans to gradually introduce this payment option to regions where cryptocurrency usage is legally accepted. Europe, the Middle East, and Africa (EMEA) represent Ferrari’s largest market, accounting for approximately 46% of car shipments in the first half of the current year.

Ferrari’s bold move into cryptocurrency payments underscores a growing trend among established companies aiming to cater to evolving customer preferences and venture into the digital financial landscape. The roar of a Ferrari’s engine might soon be accompanied by the hum of blockchain transactions, forging a new era for the luxury car market.

DeFi’s Explosive Growth & Risks: Insights From ESMA’s Latest Report

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The European Securities and Markets Authority (ESMA), the regulatory body overseeing financial markets in the European Union, has published a comprehensive report on decentralized finance (DeFi) and its potential impact on the EU market. This 22-page document, released on October 11, delves into the various aspects of DeFi, including its growth, benefits, and the associated risks.

DeFi’s Impact on Financial Stability

Decentralized finance, often touted for its promise of financial inclusion, innovative financial products, and improved transaction efficiency and security, is acknowledged in the report. It highlights the attraction it holds for investors and regulators, assessing its unique features and the challenges it presents to ESMA’s mission of shaping crypto-asset market regulations.

While its current exposure to investors is relatively modest, the report emphasizes the substantial risks associated with its speculative nature, operational vulnerabilities, security concerns, and the absence of clear accountability. Although decentralized finance’s size doesn’t threaten financial stability, the report underlines the need for continuous monitoring.

The report documents its explosive growth in 2021, with Total Value Locked (TVL) reaching a staggering $225 billion in December. However, the subsequent collapse of Terra in May 2022 exposed the vulnerabilities in the ecosystem. TVL has since hovered around $70-80 billion, even as the number of DeFi users continues to increase. The report points out that DeFi represents only a fraction of Ethereum addresses.

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DeFi offers the potential for transparent, efficient, and inclusive financial services through smart contracts. It enables continuous, round-the-clock transactions and fosters innovation in financial products like perpetual futures, flash loans, and autonomous liquidity pools.

Yet, the report emphasizes the significant risks tied to DeFi, including market volatility, liquidity issues, and counterparty risks, all exacerbated by the speculative nature of crypto assets. Smart contract errors can lead to vulnerabilities and losses, and DeFi lending often necessitates over-collateralization and potentially exploitative liquidation mechanisms.

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Decentralized Exchanges (DEXs), which enable non-custodial trading, are highlighted for their importance in crypto markets. Unlike centralized exchanges, they don’t require users to relinquish control of their assets during trading.

The report also addresses market manipulation concerns in DEXs, including practices like wash trading, pump-and-dump schemes, and front-running, which are prevalent due to their pseudonymous nature and low barriers to entry. Flash loans have legitimate uses and can be exploited for market manipulation.

However, the ESMA report underscores that while DeFi’s overall exposure is currently limited, it poses significant risks to investor protection and the traditional financial system. 

The technicalities of DeFi and data gaps compound regulatory challenges. The report also hints at potential legislative proposals and amendments to existing regulations in response to the dynamic DeFi landscape.

Related Reading | Coins.ph & Circle Unite: Pioneering Secure And Affordable USDC Remittances

Binance Assists Thai Police In Bust of $277 Million Crypto Scam

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In a remarkable collaborative effort to combat cybercrime, Binance, the world’s leading cryptocurrency exchange, has joined forces with the Cyber Crime Investigation Bureau (CCIB) of the Royal Thai Police to crack down on criminal networks using digital assets for illicit activities. The joint operation has arrested five key members of a vast criminal organization responsible for major crypto scams. 

According to a recent report, the seized assets, valued at approximately THB 10 billion ($277 million), include luxury automobiles, residences, land, and various high-end possessions. The success of this operation comes as a beacon of hope in the fight against rising crypto scams in Thailand, which have caused financial losses of hundreds of millions. Police Lieutenant Colonel Thanatus Kangruambutr, Inspector of the Cyber Support Unit at Thailand’s CCIB, expressed his gratitude for the exchange’s significant contribution and highlighted the importance of information exchange with key partners like the Binance Investigations team. He stated, 

“Binance remains an essential ally in our combat against scams and cybercrimes. We value this partnership and look forward to continuing it.”

Binance’s Regulatory Challenges:

This collaboration sheds a positive light on Binance, which has faced regulatory accusations in the past regarding investor protection. However, the exchange has found support from market players such as Paradigm in its recent battle against the US SEC. Even USDC issuer Circle has weighed in, asserting that stablecoins should not be subject to the same regulatory rules as traditional securities.

Binance was pivotal in exposing a significant cryptocurrency scam orchestrated by an international criminal network. The investigation resulted in the apprehension of suspects located across 30 different sites in Bangkok, Samut Prakan, and Udon Thani provinces, thanks to the cooperation of over 200 officers from the CIB. Binance provided crucial intelligence to law enforcement and dispatched an investigator to Thailand to assist in securing arrest warrants.

Emphasizing its commitment to combatting cybercrime and ensuring global regulatory compliance, exchange views collaborative law enforcement initiatives as integral to the security of the Web3 ecosystem.

In recent months, Binance and its CEO, Changpeng Zhao, have faced intense regulatory scrutiny. The latest challenge involves a lawsuit alleging market manipulation activities by the leading exchange and its chief, which purportedly contributed to the financial instability of FTX.

Related Reading: | Binance Battle: Paradigm’s Bold Defense Against SEC’s Overreach

Coinbase Singapore Secures Key License Amid Crypto Surge

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Coinbase Singapore has achieved a significant milestone by obtaining a Major Payments Institution (MPI) license from the Monetary Authority of Singapore (MAS). This achievement underscores Coinbase’s dedication to the Singaporean market and its commitment to providing Digital Payment Token services to both individuals and institutions in the region.

Coinbase Global Regulatory Success

The journey to this license was marked by regulatory challenges, but Coinbase’s perseverance and compliance efforts have paid off. Just days before this announcement, Coinbase International Exchange received regulatory approval from the Bermuda Monetary Authority (BMA) to offer perpetual futures to eligible non-US retail customers.

Furthermore, Coinbase registered as a cryptocurrency exchange and custodian wallet provider with the Bank of Spain, solidifying its presence in the European market, as reported by TronWeekly.

The late­st blog post reveals that Singapore, ofte­n considered a thriving center for the crypto and Web3 economy, holds a significant position in its global expansion strategy.

A significant number of individuals in Singapore­ are already involved in the­ crypto space, with 25% of surveyed Singapore­ans considering cryptocurrency as the future­ of finance. It makes Singapore a pivotal marke­t for the company.

In catering to the­ specific needs of the­ Singaporean market, the company has made­ tailored offerings. Earlier this ye­ar, funding options like PayNow and FAST bank transfers were­ introduced, enhancing the­ convenience for custome­rs to interact with the platform.

The integration of SingPass, Singapore’s trusted digital identity system, has streamlined the onboarding process. Additionally, Coinbase introduced no-fee USDC purchases with SGD to encourage adoption.

Beyond product offerings, the company is actively involved in growing the regional crypto economy. The company de­monstrate its commitment through initiative­s like training and hiring programs at the Singapore Te­chnology Center. 

Moreover, it establishe­d strong partnerships with industry associations such as ACCESS, the Singapore Finte­ch Association, and the Blockchain Association of Singapore. 

It is worth mentioning that Coinbase­ Ventures has also made re­gion-specific investments in Singapore­, thereby playing a significant role in bolste­ring the local ecosystem. Its collaboration with local developers, key partners, and initiatives like sponsoring Ethereum Singapore and conducting workshops at prominent universities underscores its commitment to community engagement and education.

However, granting the MPI license by MAS validates Coinbase’s operations and signifies a commitment to the crypto and Web3 community in Singapore. Coinbase emphasizes its dedication to working closely with regulators in key countries as part of its international expansion, with VASP registrations achieved in multiple European countries.

Binance Battle: Paradigm’s Bold Defense Against SEC’s Overreach

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Paradigm, a prominent investment firm, has submitted an amicus brief in favor of Binance, in which they critique the U.S. Securities and Exchange Commission (SEC) for overstepping its regulatory authority.

As outlined in documents submitted to the SEC, Paradigm’s position argues that assets like gold, silver, and art can appreciate in value over time, but this does not necessarily make their sale equivalent to a securities transaction. The firm firmly contends that such assets do not inherently possess the characteristics of securities.

As reported by TronWeekly, Circle also recently entered the legal fray between the SEC and Binance. Circle’s core argument is that stablecoins like Binance USD (BUSD) and USDC should not be labeled as securities because purchasers of these assets do not anticipate making a profit from them. According to Circle, payment stablecoins lack the essential attributes of an investment contract.

Paradigm’s Strong Stance in the Binance SEC Lawsuit

Paradigm’s official stateme­nt, released on Se­ptember 29th, clearly states that the company has no financial stake in Binance and is not an inve­stor in the exchange. De­spite this, Paradigm emphasized the­ significance of resisting governme­nt overreach and highlighted the­ importance of upholding principles without considering who is be­ing accused. 

The SEC’s lawsuit against Binance is part of a broader effort by the regulatory agency to assert control over cryptocurrency secondary markets. This move has prompted criticism from various quarters. 

SEC Chair Gary Gensler acknowledged the agency’s limitations in regulating these markets, stating that “the exchanges trading in these crypto-assets do not have a regulatory framework.”

Paradigm raises several objections to the SEC’s approach in its amicus brief. First, it disputes the SEC’s assertion that an “investment contract” does not necessitate a formal contract, citing statutory language and legal precedents emphasizing contractual obligations for future value delivery. 

Paradigm raises two ke­y arguments against the SEC’s theory. Firstly, the­y maintain that applying securities laws to ordinary asset sale­s disregards the absence­ of a “reasonable expe­ctation of profits.” Secondly, Paradigm asserts that the SEC’s e­xpansive interpretation of “inve­stment contract” excee­ds its authority and advocates for clear congressional authorization.

Circle Throws Support Behind Binance In SEC Legal Fight

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USDC issuer Circle has embarked on a bold move by stepping into the legal battle between the U.S. Securities and Exchange Commission [SEC] and Binance, the global cryptocurrency exchange led by CEO Changpeng Zhao. The US securities watchdog filed a lawsuit against the CZ-led platform in June, alleging violations of local securities laws, particularly focusing on unregistered securities sold by Binance’s affiliate, BAM Trading, including BNB and stablecoin BUSD.

Circle’s defense, presented in a filing in the late hours of September 28, contended that stablecoins designed for payments lack the attributes of an investment contract, thereby falling outside the SEC’s jurisdiction. They argued that users of these asset classes don’t anticipate profits from holding them. This development comes just over a month after Dante Disparte, Chief Strategy Officer of the firm, highlighted how U.S. bank failures had pushed investors towards “unsafe, opaque” cryptocurrencies overseas.

In a strategic move, Circle is set to roll out its dollar-pegged stablecoin USDC on the Polygon Proof-of-Stake [PoS] chain on October 10. This native implementation of USDC on Polygon is set to offer direct institutional on and off-ramp services, eliminating the need for bridging stablecoins with other networks like Ethereum.

Circle Unveil USDC Expansion On Polygon’s PoS Chain

According to the official announcement, USDC bridged from Ethereum will be rebranded as USDC.e within the Polygon ecosystem post-launch. To facilitate this transition, Circle will suspend its account and API support for bridged USDC on Polygon, cautioning users against sending bridged USDC.e to Circle Accounts after November 10, as it could lead to loss of funds. Moreover, the firm has urged its customers to adjust their API integration to seamlessly work with native USDC.

Circle
Circle Throws Support Behind Binance In SEC Legal Fight 4

This expansion initiative aligns with Circle’s previous announcement in August, where they revealed the Cross-Chain Transfer Protocol [CCTP], designed to enhance USDC’s interoperability across various chains. This protocol will be deployed on the Polygon PoS, enabling USDC to move natively from Ethereum and other supported chains within minutes, enhancing efficiency and accessibility for users.

Circle’s move not only showcases their confidence in USDC’s utility but also challenges the regulatory boundaries around stablecoins, positioning them as a crucial component of the evolving financial landscape. As they bridge the gap between cryptocurrencies and mainstream finance, Circle’s strategic decisions continue to shape the industry’s trajectory, offering both innovation and regulatory insight.

Ethereum’s Vitalik Buterin’s Recent ETH Transfers: Details

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In the ever-evolving landscape of cryptocurrencies, every move made by influential figures like Ethereum co-founder Vitalik Buterin sends ripples through the crypto community. The latest development raising eyebrows is the transfer of approximately 400 ETH from a wallet linked to Buterin to Coinbase, with a current estimated value of $631,840. While the exact motive behind this transfer remains a mystery, recent on-chain data offers some intriguing insights.

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Source: Etherscan

Over the past seven days, Buterin has not been sitting idle when it comes to managing his crypto holdings. Reports indicate that he transferred 300 ETH to Kraken and converted 200 ETH to USDC. These moves suggest a proactive approach to managing his cryptocurrency portfolio, potentially reflecting his views on the crypto market’s dynamics.

What stands out is the stark difference between the two wallets associated with Buterin. The wallet simply labeled “Vb 2” holds a diverse portfolio of over 201 tokens worth a substantial $191,210, in addition to a significant Ethereum balance exceeding $2.7 million. In contrast, the wallet responsible for the recent Coinbase transfer maintains a meager balance of 0.00021 ETH, valued at a mere $0.34. This discrepancy raises questions about Buterin’s diversified approach to managing his assets and the potential strategies he may be employing.

Notably, this isn’t the first time Buterin has interacted with Coinbase. Just a month ago, he transferred 600 ETH worth $1 million at the time. These frequent interactions with the exchange platform underline Buterin’s ongoing involvement in the cryptocurrency space, beyond his foundational role in Ethereum’s development.

Ethereum’s Tangible Value Challenge

In a recent interview, Buterin highlighted a key challenge for both him and the Ethereum community: ensuring that Ethereum delivers tangible value to its users. His emphasis on making the on-chain experience “actually good” for regular people reflects his vision for the platform. According to Buterin, the last decade was dedicated to perfecting Ethereum, while the current decade is all about building practical applications that ordinary individuals can utilize.

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Source: Etherscan

Buterin’s recent activities, including the ETH transfers and his continued involvement in shaping Ethereum’s future, exemplify his commitment to turning his vision into reality. As he navigates the crypto landscape, his actions will undoubtedly serve as a barometer for the broader crypto market’s direction, leaving enthusiasts and investors eagerly anticipating his next move.

Coinbase Surpasses Satoshi Nakamoto As The Biggest Bitcoin Owner: Arkham Intel

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Coinbase, the­ largest US-based cryptocurrency e­xchange, holds an astounding 1 million Bitcoins (BTC) in its reserve­s, according to a rece­nt report from Arkham Intel, a prominent blockchain inte­lligence platform. Coinbase is now the biggest Bitcoin owner in the world, surpassing even Satoshi Nakamoto, the enigmatic creator of Bitcoin. 

By utilizing its proprietary algorithm, Arkham Intel identifie­d and labeled over 36 million Bitcoin de­posit and holding addresses associated with this exchange. The analysis reveale­d that Coinbase’s Bitcoin reserve­s are valued at more than $25 billion, accounting for ne­arly 5% of the total Bitcoin supply. 

Arkham Intel shared these intriguing findings on X (formerly Twitte­r) and speculated that Coinbase’s actual holdings could be­ even higher than what the­ir identified addresse­s indicate, suggesting that there­ may be thousands of additional Bitcoins might not have been recorded yet. 

Chine­se reporter Colin Wu unde­rlined this notion via his X account Wu Blockchain, confirming Coinbase’s impressive­ Bitcoin portfolio. While acknowledging that a considerable­ portion of these 1 million Bitcoins might belong to Coinbase­’s clients, Wu didn’t discard the possibility of undisclosed hidde­n treasures.

Coinbase Holds A Variety Of Cryptocurrencies Beyond Bitcoin

In addition to Bitcoin, Arkham Intel also re­vealed that Coinbase holds significant amounts of othe­r cryptocurrencies. These­ include Ethereum (ETH), Chainlink (LINK), USD Coin (USDC), and Binance­ Coin (BNB). According to the report, the exchange owns about 1.68 million ETH, value­d at $2.69 billion; 68.59 million LINK, valued at $471 million; 222 million USDC, which is pegged 1:1 to the­ US dollar; and 921,000 BNB, valued at $194 million.

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Source: Arkham Intel

The report e­mphasizes the exchange dominant position in the crypto space­ and its diverse portfolio of digital assets. Not only doe­s the exchange hold the largest amount of Bitcoin, but it is also a major playe­r in the decentralize­d finance (DeFi) sector. Coinbase­ has its own Layer-2 blockchain solution called Base.

Base­ has surpassed Solana in terms of total value locke­d (TVL) according to Defillama—a website that tracks TVL in various De­Fi protocols—with $370 million locked compared to Solana’s $310 million. This achieve­ment places Base among the­ top DeFi platforms in terms of TVL, ranking below Mixin, Polygon, Avalanche­, Optimism, Arbitrum,BSC Tron, and Ethereum.

Related Reading | Ethereum Faces Challenges as Network Fees Drop, Activity Declines

QCAD Launches On Solana, Offering Efficient Digital Dollar Transactions

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Canadian fintech infrastructure provider Stablecorp has introduced its stable cryptocurrency, QCAD, onto the Solana (SOL) blockchain. The move opens up new avenues for global users of Digital Money and Solana blockchain, allowing them to diversify beyond traditional USD holdings and gain access to seamless payments and foreign exchange options in Stablecorp’s digital dollar QCAD.

In a statement by Stablecorp, they announced the integration of QCAD into Solana-based decentralized applications (dApps) for purposes such as preloading payment cards and settling bills. Additionally, Stablecorp hinted at an upcoming Solana Pay integration set to be unveiled in Q1 of 2024.

This initiative is expected to bring QCAD to the hands of the approximately 8 million monthly active users on the blockchain, primarily focusing on facilitating payments and the burgeoning “on-chain FX” market.

Starting immediately, global users can utilize QCAD/USDC foreign exchange pairs on decentralized platforms across Solana, including Orca, at a fraction of the cost incurred through traditional venues, offering instantaneous settlement. 

For example, Orca platform users can exchange 5000 USDC for QCAD at a remarkably low all-in cost of less than 0.15%, encompassing trading fees, price fluctuations, and blockchain fees. 

It starkly contrasts the approximate 4% cost incurred when exchanging via credit card or wire or the roughly 0.6% cost associated with other low-cost FX platforms. QCAD is also accessible from EURO, SGD, and other prominent global currencies with similar levels of efficiency.

QCAD’s Versatile Use Cases On Solana

Beyond foreign exchange, QCAD serves as an efficient solution for various use cases, including preloading payment cards and settling bills, such as taxes and tuition.

These functionalities are available through Stablecorp’s Grapes Finance platform and across the broader ecosystem. The company anticipates further integrations with payment platforms, such as Solana Pay, in the first quarter of 2024.

Alex McDougall, CEO of Stablecorp, highlighted the significance of QCAD and similar digital currencies, stating:

The power of Digital Money like QCAD is just beginning to be understood as integrations like this one with Solana come online.

For more in-depth information regarding Digital Money, currency diversification, and On-Chain FX initiatives, Stablecorp’s recent report, “The Seven Defining Opportunities In On-Chain FX,” co-authored with Cumberland and Zodia Markets, offers valuable insights. 

Additionally, notable developments in the Solana ecosystem, including VISA selecting the SOL blockchain network for USDC settlements and Shopify endorsing Solana Pay as an approved app in their merchant store, can be found in recent payment announcements.

Related Reading | Ethereum Faces Challenges as Network Fees Drop, Activity Declines

Solana’s Daily Active Addresses Dip, But Future Payments Revolution Beckons: Report

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In recent days, Solana, the Layer 1 blockchain network, has witnessed a decline in the number of daily active addresses, causing some concern among crypto enthusiasts. The drop, however, may not be as alarming as it seems, according to Austin Federa, the acting head of strategy for the Solana Foundation.

Federa emphasized that the decrease in daily active addresses does not necessarily equate to a decline in actual users. He pointed out that the network might have seen a reduction in the presence of bots, which could have been driven by changes in economic incentives and network upgrades implemented earlier in the year. 

Additionally, traders who previously relied on multiple bots for activities like arbitrage and NFT minting may now opt to pay priority fees akin to Ethereum, potentially accounting for the drop in active addresses.

Data from The Block’s Data Dashboard reveals that the network’s daily active addresses, measured using a seven-day moving average, declined from over 300,000 in mid-August to approximately 204,000 by the end of the month.

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Kevin Peng, a Research Analyst at The Block, echoed Federa’s sentiments, stressing that daily active addresses can be a misleading metric influenced by short-term events. He suggested that transaction fees provide a more meaningful indicator of user activity within a blockchain.

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Solana’s Ecosystem Bolster Confidence

Despite the recent decline in daily active addresses, there are reasons for optimism within the Solana community. Visa recently expanded its USDC stablecoin settlement capabilities to Solana, enhancing the protocol’s appeal for digital payments. 

MakerDAO co-founder Rune Christensen also expressed confidence in Solana’s technology, calling it “the most promising codebase” for building a new blockchain.

Solana’s integration with e-commerce giant Shopify and the development of its payment system also contributes to a positive outlook. These initiatives could potentially attract more users and merchants to the Solana network.

Looking ahead, Federa hinted at more “payment news” on the horizon, possibly in the coming month. He emphasized the growing infrastructure that enables the creation of user-friendly payment experiences on the Solana blockchain, comparable to popular platforms like Venmo.

While daily active addresses may have dipped momentarily, the network’s long-term prospects remain promising, buoyed by strategic partnerships and a commitment to enhancing user experiences on the network.

Related Reading | Bitcoin’s On-Chain Activity & Price Suppression Hint at Bull Run Potential