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Cryptocurrency

Web3 usernames may see greater adoption due to recent advancements

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Ever since the Ethereum Name Service (ENS) was launched in 2017, Web3 users have been able to replace the long strings of characters that make up a crypto address with a more easily memorized blockchain username or Web3 domain name. For example, Ethereum (ETH) users can now send crypto to the network’s founder, Vitalik Buterin, at his username of vitalik.eth without knowing that his address is 0xd8da6bf26964af9d7eed9e03e53415d37aa96045.

But despite this advancement making it much easier to identify users, hardly anyone has taken advantage of it. There are over 200 million unique addresses on Ethereum, yet only 2.2 million .eth names were registered as of January. This means that at least 97% of Ethereum addresses are not associated with an ENS username.

This lack of usernames creates user experience problems in the Web3 ecosystem. Just imagine if early email addresses had consisted of long strings of characters that looked like 0x7a16ff8270133f063aab6c9977183d9e72835428 or 0x3A7937851d67Ee2f51C959663749093Dc87D9C9a. If this had been the case, Email may not have survived as a practice.

But despite this initial lack of adoption, there is some evidence that the tide may be turning in favor of Web3 usernames. A few recent advancements in wallet and messaging apps may onboard more users than ever before.

One of these advancements is better wallet integration with free usernames.

Wallet integration and free usernames

Wallets have had the ability to understand Web3 names for a long time. According to Metamask’s changelog, it introduced the ability to send to a .eth name in October, 2017, right after ENS launched. Other wallets have followed suit with this feature, including Coinbase wallet, Trustwallet, and others. Some of these wallets have also integrated with ENS rivals Unstoppable Domains, Space ID, Bonfida and others.

However, these wallets still show a crypto address to users by default, as new users don’t typically receive names automatically.

In order for a user to receive crypto via their Web3 name, they need to first register a username with a particular name provider. This means figuring out which provider to use, navigating to the providers interface, and going through the process of registering.

To make matters worse, names can be expensive. ENS names typically cost $5 and expire after a year, while Unstoppable Domains names that do not need to be renewed typically cost from $20-$40. Compare this with how easy it is to sign up for an email address for free using Gmail, Outlook, Yahoo. etc., and it’s easy to see why most crypto users don’t have a Web3 username.

A few wallet apps have been trying to solve this problem by giving away free domain names to their users. For example, Coinbase wallet allows new users to register a single .cb.id username for free, once per year, and Kresus wallet offers its users a free .kresus username of up to 8 characters as well.

This practice of giving out free usernames has begun only recently. And some popular wallets like Trustwallet and Metamask still don’t offer the feature. But as more users onboard to the Web3 ecosystem, this may lead to greater adoption of Web3 usernames over time.

Another recent advancement is instant messaging integration.

Chat messaging with Web3 usernames

Some messaging apps have begun to implement Web3 names as usernames, increasing these names’ utility beyond the payments use-case. One example is Blockscan Chat. It allows users to send instant messages to any Ethereum address or ENS username.

When messages are sent using Blockscan chat, they produce alerts on the Etherscan block explorer. If the recipient sees the alert and logs into the app, they are able to read the message. The developer of the app claims that all of its messages are end-to-encrypted. So although anyone can see if a particular user has received a message, only the sender and recipient can read it.

Web3 usernames aren’t an absolute necessity for using Blockscan chat, as it does allow users to send messages to crypto addresses as well. But names do make it much easier for users to find each other in the app.

Another example is Grill.chat, a messaging app running on the Subsocial (SUB) network. When a user first signs up for it, they are assigned a random username. But they can optionally attach an Ethereum wallet to their account. If they do this, the app automatically converts their random username into their .eth username.

Being able to find other users to chat with via their web3 usernames is arguably a more useful feature than being able to send crypto with them.

After all, the crypto community is still small. If a crypto user needs money from friends or family, they may be better off right now using traditional Web2 apps like Venmo or Apple Pay, as their friends and family may not know how to use a Web3 wallet. But if a person wants to chat specifically about crypto and Web3 apps, being able to look them up by their username could turn out to be a huge advantage. This added use-case may entice more users to adopt Web3 names in the future.

Another recent advancement in Web3 names is cross-chain names.

Cross-chain Web3 names

When Web3 names were first invented, ENS was the only protocol that could be used to create them, and it could only be used on Ethereum.

But the Web3 ecosystem has since grown to encompass many different chains. And as the number of chains has grown, so has the number of naming protocols. Users can now register Polygon (MATIC) usernames from Unstoppable Domains, Solana (SOL) ones from Bonfida, and both Arbitrum One (ARB) and BNB Chain (BNB) names from Space ID.

This fragmentation across chains can make integration difficult for wallets and block explorers and cause confusion for users. For example, suppose that a person’s Polygon username is newton.crypto. But when they go to register the same name on BNB Chain, they find that newton.bnb is already taken, so they register einstein.bnb instead. When a user looks at this person’s address on a block explorer, either name could appear, depending on which one the developer of the block explorer has chosen to display. And regardless of which one is displayed, it could cause confusion for users.

In this case for example, if a user wants to send crypto to newton.crypto via BNB Chain, they may easily send it to newton.bnb instead, which will turn out to be the wrong recipient.

A few Web3 companies are trying to fix this problem by creating a single name for each identity across multiple chains. For example, the Redefined app allows users to register for a username on Arbitrum One, but use it to receive funds on 8 other chains: Polygon, Optimism (OP), BNB Chain, Solana, Bitcoin (BTC), Fantom (FTM), Moonbeam (GLMR) and Near.

To make this feature possible, Redefined lets the user write an address or username for each network into the Arbitrum smart contract through a “manage” tab within the app. Once the addresses are listed in the contract, any person can initiate a transaction to the correct address using a “send” function within the app. In order to send funds, the sender only needs to know the recipient’s Redefined username, not the recipient’s name or address on any particular chain.

Redefined usernames begin with an @ and do not have extensions. For example, @newton and @einstein are possible redefined usernames.

Did.id, also called “.bit,” is a similar project that runs on the Nervos network. It allows users to register for a .bit username that works across 39 different networks, including Bitcoin, Ethereum, Polygon, Solana, Bitcoin Cash (BCH), Internet Computer (ICP), and many others. Registration can be done directly with a Nervos network wallet or indirectly using Polygon.

Did.id doesn’t feature a user interface with a “send” function. However, it is integrated with nine different wallet apps, including imToken, Tokenpocket, MathWallet, Huobi Wallet, Bitkeep, HyperPay, AlphaWallet, ViaWallet, and MIBAO. So it’s available to senders who use these wallets.

Cross-chain usernames are yet another new development that may spur greater adoption of Web3 usernames over time.

When will usernames catch on?

Despite these advancements, it’s still not clear how long mass adoption of Web3 usernames will take. Right now, over 90% of Web3 addresses are not associated with any username. So there is a huge hill to climb in terms of adoption. And in the meantime, users still need to cut and paste a complicated string of characters to find a person’s Web3 identity.

There is also still plenty of friction left for users, including the continuing high cost of registering a name for users of most wallet apps.

Even so, these advancements may pave the way for the mass adoption of Web3 usernames at some point in the future.

Cryptocurrency

Bitget’s Token Merge and Burn Boost BGB by 22%, Reaching New ATH

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Bitget, a Seychelles-based crypto exchange, has unified its native cryptocurrencies, Bitget Token (BGB) and Bitget Wallet Token (BWB), into a single utility token, BGB.

The move has led to an impressive 22% rise in Bitget Token’s price in the last 24 hours, pushing it to an all-time high (ATH) of $8.45.

In addition, the company revealed that they will burn a whopping $5 billion worth of BGB tokens in a newly unvelied whitepaper.

Token Merge Sparks Market Enthusiasm

At the time of writing, data from CoinGecko showed that the asset’s value had increased by more than 125% over the past seven days, outperforming the global crypto market, which lost 1.50% of its worth in that period. In addition, it has done better than similar centralized exchange (CEX) tokens, which are up about 12.70% on average.

The uptick is even more pronounced across extended periods, with BGB jumping more than 160% in the last fortnight and almost 430% over 30 days. Further, the token’s current price is a massive 1,346.2% improvement over its level from the same time last year, potentially making it the best-performing CEX cryptocurrency of 2024.

BGB’s current market capitalization of over $11.7 billion has propelled it into the #19 position among the largest-capped cryptocurrencies, leaping Stellar (XLM), Polkadot (DOT), and Hedera (HBAR).

In addition to the merger, the team revealed a considerable burn of more than $5 billion worth of tokens, which surely played a role in the price uptick. This represents over 40% of the total supply of BGB.

Utility and Real-World Integration

According to Bitget CEO Gary Chen, the merger will grow BGB’s utility, with plans to use it in decentralized applications (dApps) and major blockchain ecosystems. The integration will also reportedly extend to staking in decentralized finance (DeFi) protocols and to power essential services such as multi-chain gas fee payments.

Beyond the blockchain, the exchange intends to position BGB as a key enabler of real-world applications by allowing payments for dining, travel, and shopping, among others, through its Web3 PayFi service.

The company has assured BWB holders that their assets will be transitioned to BGB through an automated swap process that will convert each BWB token to BGB at a pre-determined ratio. Any remaining BWB has been earmarked for burning to bolster the unified asset’s scarcity and long-term value.

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Cryptocurrency

SimpleSwap Analysts Unveil 2025 Crypto Market Outlook

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[PRESS RELEASE – George Town, Cayman Islands, December 27th, 2024]

As the cryptocurrency sector continues its evolution, SimpleSwap, a user-friendly cryptocurrency exchange platform, has shared its market insights for 2025. Analysts from SimpleSwap, Rick S. and Henry B., have provided an overview of anticipated trends that may shape the industry in the coming year.

Tokenization of Real-World Assets (RWA)

Blockchain technology is poised to play a pivotal role in tokenizing real-world assets (RWA), including stocks, bonds, real estate, and commodities such as oil and precious metals. According to Henry B., this advancement could broaden access to traditionally illiquid assets, integrating them into decentralized finance (DeFi) ecosystems and enhancing their tradability.

Developments in Meme Coins

Meme coins are expected to maintain their prominence within the crypto market. Emerging blockchains like Base and Sui may serve as platforms for new meme coin projects. Analysts note the growing influence of artificial intelligence in streamlining the creation, promotion, and trading of these coins, which may further simplify the process for developers.

Bitcoin and Institutional Strategies

Analyst Rick S. anticipates that MicroStrategy will continue to increase its Bitcoin holdings, potentially reinforcing its position as a significant institutional player. This activity may align MicroStrategy’s stock performance with broader market trends in cryptocurrency.

Ethereum’s Prospects

Ethereum (ETH) is projected to reach new all-time highs, driven by its ecosystem’s expanding adoption and innovative developments. Analysts highlight Ethereum’s role as a foundational blockchain supporting numerous decentralized applications (dApps) and protocols.

Regulatory Shifts in the U.S. and Europe

Changes in the regulatory landscape could impact the crypto industry significantly. SimpleSwap analysts suggest that shifts in U.S. policies and proposed European legislation may aim to enhance transparency and compliance in the sector.

Continued DeFi Expansion

DeFi is expected to experience further growth, with total value locked (TVL) increasing across key areas such as cross-chain exchanges, decentralized derivatives, and restaking. Custom Layer 1 networks designed specifically for DeFi applications could also emerge.

Solana’s Growth Trajectory

Solana may see significant growth in adoption, attributed to its high transaction speeds and cost-efficiency. The blockchain remains a popular choice for meme coins and DeFi projects, potentially positioning it as a competitor to Ethereum.

Market Capitalization Milestones

The cryptocurrency market’s total capitalization is expected to reach new all-time highs, driven by leading cryptocurrencies such as Bitcoin and Ethereum, alongside strong performance from altcoins.

Institutional Interest in ETFs

Exchange-traded funds (ETFs) for Bitcoin and Ethereum are anticipated to continue attracting both retail and institutional interest. Analysts also predict the introduction of ETFs for other prominent cryptocurrencies, which could diversify investment opportunities.

Broader Adoption in Emerging Markets

Cryptocurrencies are expected to gain traction in regions with economic instability, offering alternatives to depreciating national currencies. Enhanced crypto payment tools and tax services may support adoption, providing financial solutions in these areas.

Role of Artificial Intelligence

Artificial intelligence is projected to have an increased impact on trading and DeFi operations, facilitating automated strategies and fund management through AI-driven insights.

For further insights, users can visit the SimpleSwap Analytics section or follow the platform on TradingView.

About SimpleSwap

SimpleSwap is a cryptocurrency exchange platform offering fast, secure swaps and supporting over 2,500 cryptocurrencies. With features such as fiat-to-crypto transactions and cross-chain exchanges, SimpleSwap aims to make cryptocurrency accessible to all users.

Disclaimer

This publication is for informational purposes only and does not constitute investment advice.

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Bitcoin Kimchi Premium Surges as South Korea Grapples with Political Turmoil

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The ongoing political turmoil in South Korea has had a ripple effect on the country’s financial market. The South Korean won has dropped to its lowest value against the United States dollar since March 2009.

This devaluation is reflected in the Bitcoin Kimchi Premium, a metric showing the gap between BTC’s price in South Korea and other countries. On-chain data from CryptoQuant reveals that local investors spend as much as 3% more to buy BTC than global crypto users.

South Korean Political Troubles

Jeff Park, the Head of Alpha Strategies at Bitwise, shared insights into the present political troubles in South Korea. He explained that the country’s lawmakers recently filed a motion to impeach the Prime Minister and interim president, Han Duck-soo. This comes just two weeks after the parliament impeached President Yoon Suk-yeol, who has ruled the Asian nation since May 2022.

The president’s ousting came after he tried to implement martial law in the country to protect it from “anti-state” forces. Enforcing martial law involves conferring authority from civilians to the military. This rule suspends the civil right to freedom of the press and assembly and downsizes the power of government agencies and the courts.

Highlighting how the ongoing political turmoil concerns global democracies, the Bitwise executive wrote:

“The use of impeachment as a political tool, combined with allegations of foreign election interference, underscores the fragility of democracy in the face of disinformation. This is not just a Korean story; it’s a warning for democracies worldwide.”

Impact on Bitcoin Kimchi Premium

News about South Korea’s acting president’s impeachment triggered the won’s drastic devaluation.

Crypto asset prices are usually higher on South Korean exchanges than on foreign trading platforms, primarily because of the country’s regulators’ stringent capital control policies. At the time of writing, BTC was 144,450,000 won ($98,000) on the South Korean exchange Upbit, compared with $95,100 on the American exchange Coinbase.

Past reports show that an increase in the Bitcoin Kimchi Premium often indicates a bullish streak on South Korean crypto exchanges.

Despite the increased price gap, local investors have rapidly flocked to dollar-denominated assets like BTC as a haven from the struggling won.

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