Bridge the gap between traditional finance and DeFi

The cryptocurrency community is always looking for new methods to use decentralized finance (DeFi) technologies in order to close the gap that exists between conventional finance and fiat currencies. A main means through which consumers may traverse between these two financial ecosystems is via the use of crypto on-ramp services.

In addition, if there are complications throughout the transaction process, there is a possibility that as many as 90 percent of customers would leave their purchases in the middle of the flow.

The research looked at nine of the most popular fiat-to-cryptocurrency exchanges, such as Coinify, MoonPay, Transak, and Wyre, among others.

According to the statistics, the performance of the different onramps varies greatly; nonetheless, the position of the user is one of the primary elements to consider. The transaction success rates in Europe were among the highest in the world, while those in Africa and South America were among the lowest.

Payment methods, the fiat currency that was converted into cryptocurrency, and the available trading pairings are some of the other elements that influenced transactions on cryptocurrency exchanges. The use of bank transfers as a means of payment has been shown to have higher success rates in transaction completion rates, reaching almost 100% success in two separate cases.

In addition, the value of the transaction was a significant factor in determining whether or not it was successful. Transactions ranging from zero to twenty-six dollars had an authorization rate of sixty-six percent, whereas those with a value of more than five thousand dollars had an authorization rate of nineteen percent on average.

The study came to the conclusion that one of the potential solutions to problems with transaction authorisation might be for token service providers to provide as comprehensive a selection as they can manage of aggregated onramps via a single interface. Another solution is to dynamically route transactions in order to provide consumers with the solution that is most suitable for their circumstances.

Paolo Ardoino, chief technical officer of Tether, made this statement not too long ago at the World Economic Forum. He referred to the platform’s stablecoin Tether (USDT) as an on-ramp for Bitcoin (BTC).

The Hong Kong Monetary Authority has identified its soon-to-be-released retail central bank digital money as a possible entry point into the decentralized finance arena.

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Billionaire Ray Dalio believes that fiat is in jeopardy

Although the billionaire Ray Dalio feels that fiat currency is in danger, he is also of the opinion that neither Bitcoin (BTC) nor stablecoins are the solution to the problem. As a kind of reaction, individuals of the cryptocurrency community have taken to Twitter to share their thoughts on the matter.

During a recent appearance on the show Squawk on CNBC, Dalio was asked about his thoughts on Bitcoin as a possible solution to the issues that are caused by fiat money. The billionaire claimed that it would not be useful as a means of commerce or as a place to keep riches. In addition to this point, Dalio emphasised that stablecoins are only imitations of state-backed currencies and hence would not be an efficient form of currency.

Bitcoin users were quick to reply to the interview, stating that Dalio’s definition of what money should be is already reflected in Bitcoin. Additionally, a Twitter user identified many intrinsic properties of Bitcoin and pointed out that it provides the answer Dalio is seeking for. A member of the community tweeted: One member of the community believes that Bitcoin is the solution to the monetary issue that Dalio outlined because of the cryptocurrency’s resilience to censorship, neutrality, openness, limited supply, and freedom from control.

While this was going on, a different member of the Bitcoin community said that Dalio had “orange pilled” them with his views on the history of money. The opinion of the Twitter user is that the interview demonstrates that the billionaire is getting closer and closer to “really understanding Bitcoin.”

His view on Bitcoin has traditionally shifted back and forth between bullish and bearish for Dalio. In 2021, he moved from characterising Bitcoin as “one heck of an innovation” to adopting a more pessimistic storyline, during which he discussed the possibility of a ban on Bitcoin being enacted in the United States and said that he would prefer gold over Bitcoin as a medium of exchange.

In 2022, the billionaire advocated for an allocation of between one and two percent of investor portfolios to Bitcoin. Back then, Dalio lauded Bitcoin for its resistance to hackers and said that there is no other cryptocurrency that can compete with it on the market.

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Alchemy Pay gains 77% after exchange listings and cross-chain integrations

The cryptocurrency ecosystem has come a long way since the launch of Bitcoin (BTC) and in the last few years smart contracts have revolutionized the industry. With that said, there is still plenty of progress to be made when it comes to integrating blockchain technology to peer-to-peer, business to business and business to consumer payment systems.

Alchemy Pay aims to further the adoption of cryptocurrencies through its hybrid payments system and in the last week its ACH token gained 77% to trade at $0.0625 on Feb. 9. 

ACH/USDT 4-hour chart. Source: TradingView

Three reasons for the uptick in ACH price include the cross-chain launch of ACH on the Binance Smart Chain (BSC), multiple new exchange listings that have helped expand access to the token and the integration of Alchemy Pay with multiple blockchain projects across the ecosystem.

ACH joins Binance Smart Chain

The most significant development for the Alchemy Pay protocol was its launch on the Binance Smart Chain at the end of January.

Aside from allowing for cheaper transactions for ACH users, the cross-chain integration also helped increase the pool of available investors in ACH through the listing of tokens on BSC-based decentralized exchanges like PancakeSwap.

Alchemy Pay also partnered with Bit.Store to conduct an airdrop of the project’s STORE token as a way to reward community members and encourage future collaborations.

Fresh exchange listings tend to boost altcoin prices

A second factor helping boost the momentum in the price of ACH has been its listing on multiple exchanges, including Binance on Jan. 10.

Other notable exchange listings over the past month include WazirX, CoinEx Global, MEXC Global, ONUS Finance, Tokocrypto and XT Exchange.

Several exchanges, including Binance, have also introduced high-yielding staking products to help attract liquidity and Gate recently added a 3X leveraged ACH instrument.

Related: Cointelegraph Research: Valuing a crypto payment token

Integrations across the crypto ecosystem

A third development that has solidified support for ACH has been the integration of Alchemy Pay with multiple blockchain networks and this should speed up the launch of fiat payments.

Networks and protocols that have integrated Alchemy Pay since mid-December include IoTeX, Avalanche, Polygon, Algorand, NIUM, MakerDAO and SimpleHold.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for ACH on Feb. 8, prior to the recent price rise.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS™ Score (green) vs. ACH price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECS™ Score for ACH spiked into the green and reached a high of 74 on Feb. 8, around four hours before the price increased 55.5% over the next day.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.