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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

Bitcoin (BTC) Rebounds From the Crash to $80,000, These Altcoins Plummet by Double Digits (Market Watch)

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The last 24 hours have offered a new wave of instability for the cryptocurrency market. Bitcoin (BTC) slipped to as low as $80,000 before the bulls recovered some of the losses.

The alternative coins have followed the negative performance of the leading digital asset, with many of them charting substantial losses. 

Another Downtrend for BTC

Despite its brief spikes, Bitcoin has been on an evident downfall in the past several days. As CryptoPotato reported, the price consolidated at around $86,000 over the weekend, but the bulls had to take another blow with the start of the business week. 

A few hours ago, BTC tanked to as low as $80,000, resulting in multi-million liquidations on a 24-hour scale. Since then, though, the asset stepped on the gas pedal again, recovering to almost $84,000 (per CoinGecko’s data).

BTC Price
BTC Price, Source: CoinGecko

The enhanced volatility is expected to continue in the short term due to some upcoming events. One of those is the latest US CPI report scheduled for March 12. It will reveal the inflation rate in the world’s biggest economy, which could trigger an interest rate adjustment by the Federal Reserve. Historically, such efforts have affected BTC’s price performance. 

Meanwhile, the asset’s market capitalization stands at approximately $1.66 trillion, while its dominance against the altcoins is almost the same as on March 9 – around 58.1%.

Alts Turn Red, too

The altcoins have also gone into red territory. At one point, Ethereum (ETH) collapsed to a multi-year low of under $2,000. It later recovered some of the losses, and as of this writing, it is worth around $2,120. 

Ripple (XRP), Solana (SOL), Dogecoin (DOGE), Litecoin (LTC), Toncoin (TON), and many more have performed quite poorly, too. For its part, Pi Network (PI) continues to suffer and is now worth around $1.43, representing a 14% decline on a weekly scale. 

The very few top 100 cryptocurrencies that have charted some gains in the last 24 hours include Ethena (ENA), Aave (AAVE), and Story (IP). 

The total cryptocurrency market capitalization currently stands at roughly $2.82 trillion, representing a 5% decrease for the day.

Crypto Heatmap
Crypto Heatmap, Source: QuantifyCrypto

 

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

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Cryptocurrency

Why is the Ripple (XRP) Price Down Today?

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TL;DR

  • XRP dropped below $2.20, mirroring a broader crypto market decline.

  • However, some analysts remain optimistic, predicting a rally to $5 and beyond if the price holds key support.

XRP Bleeds Heavily

Ripple’s XRP witnessed a substantial resurgence on March 3, with its valuation climbing to just over $3. Nonetheless, in the following days, it dived into red territory, and as of this writing, it trades at approximately $2.18 (per CoinGecko’s data).

XRP Price
XRP Price, Source: CoinGecko

Its negative performance coincides with the broader decline of the cryptocurrency sector, whose total market capitalization plummeted below $2.8 trillion. Bitcoin (BTC) briefly slipped to $80,000, while Solana (SOL), Cardano (ADA), Dogecoin (DOGE), and many more leading altcoins have also charted substantial losses. 

The price decrease of Ripple’s native token also aligns with numerous on-chain metrics that have headed south in the past 24 hours. Those include the number of XRP payments from one account to another, the number of active accounts, the number of executed transactions, and others. 

The decline of these metrics typically signals a drop in on-chain activity. It also suggests fewer people are onboarding the ecosystem, potentially indicating weaker adoption or less interest from new users.

Is There Light at the End of the Tunnel?

Contrary to the recent red landscape, numerous industry participants believe XRP has yet to shine during this cycle.

X user Ali Martinez thinks that if the price avoids dropping below “the head-and-shoulders neckline” of just north of $2, it could invalidate the bearish pattern. “This move might trigger a bullish breakout toward $5,” he predicted.

Other market observers who chipped in lately include Dark Defender and EGRAG CRYPTO. The former suggested that XRP successfully broke the multi-year resistance line in November 2024 and tested previous resistance as support. 

“I’ve never seen XRP bullish more than this before,” Dark Defender stated. 

For their part, EGRAG CRYPTO envisioned a price explosion to the $27-$222 range. It is important to note that reaching such high levels would require XRP’s market cap to explode to at least $1.5 trillion. This forecast seems unlikely with the asset’s current capitalization under $130 billion.

 

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El Salvador Buys the Dip: Adds 6 More BTC to Its Holdings

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El Salvador has increased its Bitcoin holdings, purchasing 6 BTC on March 10 instead of its usual 1 BTC per day.

This is occurring against a backdrop of increased pressure from the International Monetary Fund (IMF) to stop its BTC accumulation strategy.

El Salvador Remains Committed to Strategy

The National Bitcoin Office announced the development on March 10  via X, revealing that in addition to its regular 1 BTC daily buy, the government acquired 5 more BTC. This brings the country’s total Bitcoin reserves to 6,111.18, valued at approximately $493 million at current market prices.

The latest buy comes as Bitcoin’s price continues to decline, hovering just above $80,000 at the start of the week. El Salvador has previously made similar bulk purchases outside of its daily buying routine. The country added 12 BTC on January 19, followed by 11 BTC on February 4, and another 5 BTC on March 3.

In December 2024, the Salvadoran government secured a $1.4 billion financing agreement with the IMF. As part of the deal, the nation agreed to revoke Bitcoin’s status as legal tender and limit public sector involvement with the cryptocurrency.

The financial institution has consistently voiced concerns about the country’s BTC adoption, warning of financial risks. While some expected the agreement to scale back its accumulation strategy, the latest acquisition shows that the government remains active in increasing its holdings.

IMF Pressure Continues

Further pressure from the IMF surfaced on March 3, when the organization filed a new request for an extended arrangement under its fund facility for El Salvador.

The technical memorandum outlined a condition that prohibited voluntary BTC accumulation by the public sector. Additionally, it called for restrictions on issuing any public sector debt or tokenized instruments linked to the flagship cryptocurrency.

Despite these conditions, President Nayib Bukele remains committed to the holding strategy. Responding to the organization’s latest demands, the head of state dismissed the external pressure as ‘whining,’ saying that the Central American country would not stop its purchases any time soon.

“No, it’s not stopping. If it didn’t stop when the world ostracized us and most ‘Bitcoiners’ abandoned us, it won’t stop now, and it won’t stop in the future,” he declared in a statement posted on X.

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