Crypto News

In collaboration with Energy Web and DMG Blockchain Solutions, PayPal’s Blockchain Research Group has taken a groundbreaking step towards promoting sustainability in the blockchain industry. 

They are offering incentives to Bitcoin miners to adopt environmentally friendly practices. The initiative uses cryptoeconomic incentives to encourage the use of low-carbon energy sources, which is a crucial step given the significant environmental impact of Bitcoin mining. 

According to estimates, Bitcoin mining produces 85 million metric tons of carbon dioxide annually, highlighting the need for sustainable practices in Proof-of-Work (PoW) networks.

The new proposal suggests rewarding “green miners” with additional Bitcoin to verify renewable energy transactions. These miners, identified by their public keys, will receive transaction fees and locked BTC rewards, promoting greener mining practices and improving the efficiency and security of the Bitcoin network. 

In other news, PayPal has recently announced changes to its handling of non-fungible tokens (NFTs). Starting May 20th, PayPal will withdraw buyer and seller protections for NFT transactions over $10,000 due to concerns about order fulfillment verification and high market volatility. Transactions under $10,000 will still be protected if they meet certain conditions. 

Additionally, PayPal is collaborating with Singapore-based Triple-A to integrate its stablecoin, PYUSD, into Triple-A’s offerings. This integration, set to launch by the end of June, aims to increase PayPal’s presence in the cryptocurrency market and enhance digital payment diversity, especially since Triple-A’s payment volumes are on the rise.

“PayPal has the firepower to make it available to a lot consumers at one go. Nobody has this power today,” Triple-A CEO Eric Barbier said.

This set of initiatives by PayPal represents a strategic approach to tackle the environmental impacts of cryptocurrency mining and to adjust policies for responsibility and innovation in the blockchain industry.

A recent report by Bitget Research revealed that the adoption of cryptocurrencies in the Middle East region is on the rise.

According to the study, there were an average of 500,000 active crypto traders in the region in 2024, a 166% increase from the previous year. This number is expected to increase further to 700,000 by the end of the year.

The growth in the number of crypto traders is attributed to several factors, including favorable local cryptocurrency regulations, the approval of Bitcoin (BTC) ETFs, and the growing appeal of digital assets amid a market rally. Among the countries in the region, the UAE is leading in implementing cryptocurrencies, as 72% of local users invest in Bitcoin.

“Users in the UAE have also expressed the highest willingness to invest in BTC and ETH, BTC being referred to as “digital gold” by UAE users.”
Bitget Research said in the report.

It is worth noting that Middle Eastern countries heavily rely on centralized global exchanges, with local exchange platforms such as Rain and M2 not being in the top 10 in terms of absolute traffic. This is due to the lower variety and liquidity of tradable assets on local exchanges compared to global exchanges and the convenience of deposit and withdrawal channels in local currencies.

In mid-April, the Middle East caused a sharp collapse in the cryptocurrency market. All cryptocurrencies sharply sank in price between April 13 and April 14 against the backdrop of the worsening situation in the region. Bitcoin fell by about 10% in just two hours, dropping to the $60,000 range. At the same time, dominance increased sharply, and most altcoins sank much more.

The interest in the upcoming Bitcoin (BTC) halving has reached an all-time high, according to Google Trends, indicating a high level of curiosity and speculation within the cryptocurrency community.

On April 14, 2024, searches for “Bitcoin halving” reached a score of 100, the highest level ever recorded by Google for Bitcoin in its 11-year history. The peak reflects the community’s heightened anticipation of the next halving event, which is expected to alter Bitcoin’s supply dynamics significantly.

Though search interest has dropped by 37% since its peak, it remains exceptionally high and exceeds the activity recorded in late March 2024. The sustained interest in the halving event highlights the focus among the public and investors, eager to understand its potential impact on Bitcoin’s market and broader financial implications.

Historical analysis of Bitcoin halvings shows that each event has led to a noticeable increase in its price. The first halving in 2012 reduced the block reward from 50 to 25 BTC, followed by a substantial price increase within the following year.

In July 2016, Bitcoin’s second halving occurred, decreasing the reward from 25 BTC to 12.5 BTC. This halving event caused much media attention, investor speculation, and an increase in Bitcoin price the following year.

Similarly, the halving event in 2020 reduced the reward to 6.25 BTC, which again led to speculation, media coverage, and significant price fluctuations. This pattern demonstrates that things are essential in influencing Bitcoin’s market behavior.

The data shows that Nigeria and the Netherlands are leading the regional interest, with a popularity score of 100 and 92, respectively. Switzerland follows closely with a score of 88, while Austria and Cyprus have 76, indicating strong interest. These statistics demonstrate the global attention given to Bitcoin halving.

Bitcoin reached a daily high of approximately $66,300 but has now retraced to $61,943. Over the past week, Bitcoin has experienced a significant decline, dropping by about 13% and reaching a price point of approximately $62,000.

Broader market uncertainties and speculations about the upcoming Bitcoin halving event may have influenced this decline. Historically, the halving event has been a period of increased volatility in the crypto landscape.

Venture capital investment in crypto startups increased by 32% during the first quarter of 2024, reaching a total of $2.5 billion, according to data from PitchBook.

This figure is roughly the same as the amount invested during the same period last year. Additionally, crypto startups are raising more capital, while venture firms are launching new digital asset funds.

PitchBook crypto analyst Robert Le has said that “investors are spending money again,” adding that over the past 18 months, they had been holding onto the capital they raised.

Le believed that this renewed enthusiasm for crypto is partly due to the approval of Bitcoin exchange-traded funds in January and interest in the intersection of crypto and artificial intelligence. During the crypto market’s downturn in 2023 and late 2022, VCs hesitated to tap into the funds they raised during the last bull market. However, this year, that has started to change.

Anand Iyer, the managing general partner of early-stage venture fund Canonical Crypto, has recently observed increased funding activities.

He mentioned that some founders currently raising funds have previous experience in the industry, having built something during the last cycle that was unsuccessful. Certain features of the crypto market that were prominent during the last bull run have also made a comeback.

For example, the latest memecoin frenzy has similarities with past crazes. Websites like a pump.fun has made it possible for anyone with an internet connection to create tokens without any real value, inspired by animals, pop culture, or virtually any other subject. “They’re amusing and all, but it’s a part of crypto culture,” said Iyer. Other venture capitalists are also noticing signs of maturity in the industry.

John Lo, a managing partner at Recharge Capital who oversees digital asset investment, was previously a part of the leadership team at decentralized crypto exchange, Sushi, under the pseudonym “Omakase.” He even used an Anime character filter during a webinar appearance to conceal his identity.