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Birds Eye View (vs Last 7 Days)

💵 Overall Crypto Market Cap: $2.17 Trillion (+0.4%)

🔶 BTC Dominance: 56.67% (+0.3 PPT)

💵 Price Snapshot:

🟠 Bitcoin: $62245 (+1%)

🔵 Ethereum: $2450 (-1.5%)

🟡 BNB: $576 (+4.1%)

🟣 Solana: $144 (-1.4%)

Crypto adoption on track to hit 8% by 2025: MatrixPort Report

Global cryptocurrency adoption is nearing a significant milestone, with a notable 7.51% of the world's population now actively using digital currencies. This information comes from a comprehensive report by MatrixPort, which provides insights into the current state of cryptocurrency usage across the globe.

The report projects that this figure is expected to exceed 8% by the year 2025. This anticipated growth signals a potential shift of cryptocurrencies from being a niche market into becoming a more integral part of mainstream financial systems. As more people and businesses begin to embrace digital currencies, the landscape of finance may undergo substantial changes.

One of the key highlights of the report is the growing influence of institutional involvement in the cryptocurrency market. This involvement is a crucial factor driving the steady increase in adoption rates. The report emphasizes that as more financial institutions engage with cryptocurrencies, the legitimacy and trust in these digital assets are likely to grow.

The rise in institutional interest is cited as one of the primary factors accelerating the adoption of cryptocurrencies. Financial firms, such as BlackRock, have played a pivotal role in building trust and legitimacy for digital assets within traditional financial systems. Their participation not only enhances credibility but also encourages other institutions to explore the potential of cryptocurrencies.

Markus Thielen, the founder of 10x Research, shared his insights regarding the role of institutional products in the growth of Bitcoin and the broader cryptocurrency market. He stated:

"The evolution of Bitcoin has consistently driven price rallies whenever new layers of Bitcoin acquisition were introduced to financial markets [...] The potential introduction of options based on Bitcoin spot ETFs could trigger another wave of institutional interest."

Bitcoin plays a central role in the overall adoption of cryptocurrencies. It is often viewed as a store of value, especially during periods of economic uncertainty. Thielen noted that economic challenges have historically increased the demand for Bitcoin. For instance, during the European debt crisis and the devaluation of the Chinese yuan, many investors turned to Bitcoin as a safe haven.

Thielen further added: "[...] rising US debt levels could spark strong demand for Bitcoin if the economy faces a slowdown, whether from a recessionary period or trade wars. This trend positions Bitcoin as a hedge during times of economic uncertainty."

Wio Securities Partners with Fuze to offer Virtual Assets as Investment Options in UAE

Wio Securities a digital investment platform, with a presence in the UAE has announced that it is expanding its offerings on Wio Invest by introducing a comprehensive range of new features including virtual assets such as Bitcoin, Ethereum, and others in partnership with Fuze a UAE regulated digital assets and blockchain infrastructure provider. The latest expansion empowers UAE residents to seamlessly access a diverse portfolio of investment options, including stocks in UAE and US markets, ETFs, fractional shares, and virtual assets.

With over $2 billion in processed volumes this year alone, and nearly 40% of the Wio Invest customer base converting from traditional brokerage services, Wio Invest is driving the shift towards diversified investments within a secure and regulated framework, making it easier for UAE residents to manage their portfolios efficiently.

“We are thrilled to expand our investment offerings through Wio Invest, reinforcing our commitment to providing innovative and secure solutions for our customers,” said Marwan Rashed BinHashim, General Manager, Wio Securities LLC. “Our vision is to become the simplest one-stop-shop investment platform of choice by offering a diverse range of investments that cater to all types of investors, coupled with a best-in-class user experience.”

Wio Invest’s new features are designed to enhance the investment experience. Recurring Orders allow investors to grow their portfolio on their schedule by automating investments, helping them steadily build their wealth without the stress of market timing. Analyst Ratings provide users with expert opinions and ratings from top financial institutions, enabling more informed investment decisions.

The platform also offers UAE residents access to a variety of virtual assets within Wio Securities’ secure and regulated environment, in partnership with Fuze. This collaboration ensures secure transactions, enabling Wio Invest customers to safely explore and diversify their portfolios with new safer asset classes, including cryptocurrencies like Bitcoin, Ethereum, and Ripple.

Operating under a robust regulatory framework, Wio Invest is fully regulated by the Securities and Commodities Authority (SCA), ensuring that all transactions are secure.

Embedded Crypto Products in the UAE

Speaking of embedded crypto products - If you or your clients are looking to get exposure to cryptocurrencies - then this would be a great time to mention that you can do so by capitalizing on Fuze’s best-in-class embedded products.

Drop us an e-mail at support@fuze.finance and we’ll show you exactly how we launch tomorrow’s products - today.

UAE exempts crypto transfers, conversion from value-added tax

Changes to value-added tax (VAT) rules in the United Arab Emirates will now exempt digital asset transfers and conversions, including cryptocurrency.

On October 2, the UAE's Federal Tax Authority (FTA) released updates to the country's VAT regulations. Business advisory firm PwC reports that the new rules add VAT exemptions for more services, such as investment fund management and virtual asset transfers and conversions.

PwC noted that the exemptions for virtual asset transfers and conversions will apply retroactively from January 1, 2018.

The firm explained that in the UAE, virtual assets are defined as "a digital representation of value that can be traded or converted and used for investment purposes." This definition excludes traditional currencies and financial securities.

PwC advised businesses dealing with virtual assets to review the exemption's impact on their past VAT positions. The firm also suggested that virtual asset companies pay close attention to their input tax recovery.

UAE-based accounting and tax firm Finanshels explained that in the UAE, input VAT recovery allows registered businesses to claim back VAT they've already paid on eligible business purchases.

PwC added that correcting old returns may require virtual asset companies to make voluntary disclosures.

Besides VAT exemptions, UAE regulators have recently been updating their virtual asset rules.

On September 9, Dubai's Virtual Asset Regulatory Authority (VARA) and the Securities and Commodities Authority (SCA), the UAE's federal financial regulator, agreed to jointly oversee virtual asset service providers (VASPs).

Under this agreement, VASPs operating in Dubai seeking a VARA license can also serve the broader UAE by automatically registering with the SCA.

Additionally, as covered previously - we saw that VARA has also strengthened its crypto marketing rules. On September 26, the regulator announced that firms promoting digital asset investments must include a clear disclaimer in their materials. The disclaimer must state that "virtual assets may lose their entire value or part of it and are subject to extreme volatility."

Which other countries do you think can learn from the UAE's pro-crypto policies? Let us know in the comments below!

National Bank of Bahrain rolls out its first Bitcoin investment fund

The National Bank of Bahrain has unveiled its inaugural Bitcoin investment fund, tailored for institutional investors in the Gulf Cooperation Council (GCC) region, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE).

Local news outlets report that the fund was created in collaboration with ARP Digital, a digital asset company. This investment vehicle will provide investors with exposure to Bitcoin gains, capped at a set limit, while offering full protection against losses.

"This structured investment creates new opportunities for investors looking for a measured approach to digital assets," stated Abdullah Kanoo, co-founder and co-CEO of ARP Digital. "By combining our digital asset expertise with NBB's wide reach in finance, we've developed a product that introduces Bitcoin exposure within a highly secure framework," he added.

Bahrain has been steadily drawing more digital asset businesses due to efforts to build an "innovation-friendly crypto and fintech ecosystem, which has involved establishing clear regulations that balance consumer protection with commercialization," according to Eric Anziani, Chief Operating Officer of Crypto.com.

In September, Crypto.com received a license from Bahrain's central bank to operate in the country, joining crypto exchanges like Binance - a local player since March 2022 - and BitOasis.

Regulatory progress was also made in the UAE. In 2023, Dubai's Virtual Asset Regulatory Authority (VARA) - which oversees cryptocurrency laws in the emirate - issued comprehensive crypto regulatory guidelines for Web3 companies. These guidelines include four mandatory rulebooks, seven activity-specific rulebooks outlining operating rules for VASPs, and one rulebook for issuing virtual assets.

A recent Chainalysis report shows that the Middle East and North Africa (MENA) region accounted for 7.5% of global cryptocurrency transaction volume from July 2023 to June 2024, totaling $338.7 billion. Institutional and professional investors were responsible for most of these transactions.

At a closer look, on-chain activity in the region primarily occurs through centralized exchanges, although the United Arab Emirates and Saudi Arabia have shown "high interest" in decentralized platforms.

Blockchain activity soars 70% in Q3 driven by AI DApps

Decentralized applications, commonly known as DApps, have experienced remarkable growth in the third quarter of 2024. This surge has been primarily driven by an increase in blockchain activity, particularly led by applications that utilize artificial intelligence.

According to a report released by DappRadar on October 8, the number of daily unique active wallets (UAWs) reached an impressive milestone of 17.2 million. This figure represents a significant 70% increase compared to the previous quarter. The substantial rise in UAWs can largely be attributed to the performance of AI-related DApps, which saw a remarkable 71% increase during this period. These applications accounted for nearly 4.3 million daily UAWs, showcasing the growing interest and engagement in this sector.

Key players in the DApp space, such as Data Intelligence Network (DIN) and Alaya AI, are at the forefront of this trend. DIN, which is a modular data pre-processing layer that was launched in April 2024, has made significant strides. Over the last quarter, the protocol has successfully reached 1 million daily UAWs, indicating a strong user adoption and engagement.

On the other hand, Alaya operates as a data collection and labeling platform. It has maintained a stable user base, with activity remaining consistent at around 100,000 wallets over the past 90 days. This stability suggests that Alaya is effectively meeting the needs of its users, contributing to its sustained performance in the market.

However, not all sectors within the blockchain ecosystem have seen positive growth. Activity in decentralized finance (DeFi) applications has declined during this quarter. The total value locked (TVL) in DeFi dropped from $168 billion to $160 billion, reflecting a decrease in user investment and engagement. Specifically, the Ethereum network experienced a notable 20% decline in value locked, bringing the total down to $95 billion. This decline raises questions about the future of DeFi and its ability to attract and retain users.

In contrast, other layer-1 blockchains, such as Sui and Aptos, have emerged as top performers in the same period. Each of these blockchains achieved an impressive 78% increase in their total value locked, with Sui reaching $1.6 billion and Aptos achieving $1.3 billion. This growth indicates that while some areas of the blockchain ecosystem are struggling, others are thriving and attracting significant investment.

The non-fungible token (NFT) industry, which had previously shown strong performance, faced a major downturn in this quarter. Trading volume for NFTs plummeted by 60%, dropping to $1.6 billion. Additionally, NFT sales fell to 11.5 million, marking a 23% decrease from the previous quarter. This decline highlights the volatility of the NFT market and the challenges it faces in maintaining user interest and engagement.

Despite the overall downturn in the NFT sector, the report notes that the NFT platform OpenSea has experienced a "significant rebound." OpenSea has emerged as the dominant player in the market, excelling across various metrics such as the number of sales, active traders, and trading volume. During this period, OpenSea's trading volume reached an impressive $570 million, showcasing its resilience and ability to attract users even in a challenging market.

Conversely, competitors like Blur and Magic Eden have faced sharp declines in their performance. Trading volume on Blur, which had previously led the metric in the second quarter, decreased by a staggering 78%. This decline has been attributed to the "winding down of its airdrop incentives," which had initially attracted users. Similarly, Magic Eden's decision to cut off royalties has negatively impacted its activity, driving creators and traders toward OpenSea. Furthermore, the analysis notes that "the Bitcoin Ordinals hype seems to have vanished," which had previously contributed to Magic Eden's popularity.

In summary, the third quarter of 2024 has been a mixed bag for the decentralized application landscape. While DApps, particularly those related to AI, have surged, other sectors like DeFi and NFTs have faced significant challenges. The ongoing evolution of this space will be crucial to watch as it adapts to changing user preferences and market dynamics.

Samsung Pay adds crypto payment option with Alchemy Pay integration

Samsung Pay is adding another crypto payment option, as Alchemy Pay integrates its virtual cards with Samsung's tap-to-pay system.

Alchemy Pay, a major crypto payment provider with over a million users, has added Samsung Pay support to one of its virtual cards.

On Oct. 8, Alchemy Pay announced the new Samsung Pay feature, coming just weeks after it added Google Pay integration in September.

Samsung Pay is a mobile payment and digital wallet service run by Samsung Electronics.

This partnership lets Alchemy Pay users spend with their virtual crypto cards at supported stores, both in-person and online.

Alchemy Pay noted that its virtual card users can now pay on platforms like ChatGPT Plus, the Apple Store, Midjourney, Amazon, Netflix, Facebook, and eBay, among others.

AlchemyPay expect high demand from indirect users through Samsung Pay integration. They said:

"We have a million registered users on our ramp platform and 500,000 crypto card users. Since we have many business partners, more indirect users will use our product through the integration."

Alchemy Pay isn't the only crypto payment processor working with Samsung Pay. In 2020, Samsung Pay teamed up with payment gateway Swipe to allow payments from Swipe Visa card balances.

To start, users should check the Alchemy Pay website to make sure their virtual card works with Samsung Pay. Then, they can add their card to Samsung Pay using the app and begin making crypto payments.

Users are then told to add Alchemy Pay's virtual card to Samsung Pay using the Samsung Pay app and start spending with the virtual card.

In the announcement, Alchemy Pay shared big plans to keep expanding its supported payment platforms and ensure "full integration" with major card networks, including Visa, Mastercard, American Express, and more.

Started in 2017 in Singapore, Alchemy Pay already supports some features on big Samsung Pay competitors like Apple Pay.

Alchemy Pay's fiat-to-crypto on-ramp added Apple Pay support in 2023, letting users buy crypto on the mobile app with fiat currencies, including US dollars, euros, and others. At the time, Alchemy Pay said US dollar payments were also available for non-US users.

Embedded Crypto Products in the UAE

Speaking of embedded crypto products - If you or your clients are looking to get exposure to cryptocurrencies - then this would be a great time to mention that you can do so by capitalizing on Fuze’s best-in-class embedded products.

Drop us an e-mail at support@fuze.finance and we’ll show you exactly how we launch tomorrow’s products - today.

Coinbase to delist noncompliant stablecoins under EU MiCA rules

The EU's Markets in Crypto-Assets Regulation (MiCA) is tightening control over crypto firms, and Coinbase is adapting its offerings to comply.

On Oct. 4, Bloomberg reported Coinbase will remove stablecoins that don't meet EU rules by late 2024. This change aligns with MiCA's full rollout, which aims to increase oversight of digital assets.

A Coinbase spokesperson confirmed on Oct. 4:

"Coinbase will give European Economic Area (EEA) users options to switch to compliant stablecoins, like Circle's USD Coin, in the coming months. Circle was among the first to comply with MiCA's rules."

MiCA, which started regulating stablecoin issuers on June 30, requires all stablecoins in the EEA to have an e-money license in at least one EU country.

This rule affects major tokens like Tether's USDT, which might be removed from Coinbase unless it gets the needed approval.

Coinbase joins other exchanges working to meet MiCA rules as the EU prepares to enforce them. Platforms like OKX, Bitstamp, and Uphold have already limited access to non-compliant stablecoins, including USDT.

As the stablecoin market heats up, companies like Robinhood and Revolut are looking into creating their own stablecoins to compete with Tether and Circle.

French fintech Next Generation and Irish e-money firm Decta plan to bring back a euro-pegged stablecoin, EURT, on the Stellar blockchain. They'll use MiCA's clear rules to meet the growing demand for euro-backed digital assets.

Meanwhile, USDC trading is increasing as demand for regulated digital currencies in Europe grows. In July, after EU stablecoin rules took effect, USDC's trading volume jumped by 48%.

With USDC emerging as a leading MiCA-compliant stablecoin, Coinbase's plan to offer conversion options could strengthen its market position in the region, making it a top choice for users seeking approved digital assets.

Weekly Merchandise Giveaway

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Best 2️⃣ answers win a special Fuze merch giveaway shipped right to their doorstep  🔥

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