By Modupe Gbadeyanka
Since launching its integration on the Lightning Network in September 2021, notable global peer-to-peer (P2P) fintech platform, Paxful, has continued to witness a surge in deposit volume.
In April 2022, the platform recorded a 54 per cent surge in deposit volume as users take advantage of the cheaper rates the company offers when compared with its competitors.
In Nigeria, the volume of money being sent out on Lightning has doubled from October 2021 to May 2022. One telling insight is that Paxful’s median Lightning send-out for 2022 is less than $30–which is less than its median Bitcoin send-out amount. This is another proof point showing the utility of Lightning micropayments.
The Lightning Network is the cheapest option for Bitcoin micropayments because of the difference in network fees. This has global implications as Bitcoin has now become a stronger financial contender for everyday transactions.
The Bitcoin Network is capable of handling 5 to 10 transactions per second but Lightning has the potential to process hundreds of thousands of transactions per second and it is optimistic that Lightning will highlight how Bitcoin is a reliable, cheap financial option for exchange and spur Bitcoin adoption.
“If you want to understand Bitcoin’s use cases, give access to the people. Our users are Paxful’s best product hackers and we’re excited to see them embracing Lightning.
“In the first week of May, Nigeria was one of the countries with the highest Bitcoin trade volume on Paxful alongside the United States, Ghana, China, and Kenya. Today, we have over 70 countries using Lightning on Paxful,” the founder and CEO of Paxful, Mr Ray Youssef, stated.
“By and large, Bitcoin is still viewed as a speculative asset by many. We need to change that. The HODL mentality has its place within the Bitcoin community, however, we also need to be inclusive of Bitcoin’s other use cases such as remittance, wealth preservation, and payments. This is where Bitcoin education comes in.
“At Paxful, we are invested in initiatives that enhance the knowledge of Bitcoin and Lightning and how they provide everyday solutions for consumers, merchants, businesses, lawmakers, and economies,” Mr Youssef further stated.
A system built on top of the Bitcoin network, the Lightning feature seamlessly blends into Paxful’s platform and enables the company to keep user fees lower than traditional Bitcoin transactions.
When users send or receive Bitcoin through the Lightning Network with their Paxful Wallet, their Bitcoin balance is used the same way as if they would transfer it on the Bitcoin network.
All transactions are processed in seconds and Paxful users can utilize the Lightning Network for both transactions with other individuals and to pay for goods or services.
FrieslandCampina Boosts NASD OTC Bourse by 0.08% at Midweek
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed in the positive zone by 0.08 per cent on Wednesday, June 29 driven by a bullish price movement from FrieslandCampina WAMCO Nigeria Plc.
The milk-producing company appreciated during the midweek session by 99 Kobo or 1.03 per cent to settle at N96.79 per share compared with the previous closing price of N95.80 per share.
The NASD OTC bourse recorded a price loser and it was Niger Delta Exploration and Production (NDEP) Plc, which depreciated by N6.21 or 3.14 per cent to N191.79 per unit from N198.00 per unit.
But the gains printed by FrieslandCampina offset the losses reported by NDEP as the market capitalisation expanded by N810 million to N1.005 trillion from N1.004 trillion, while the NASD Unlisted Securities Index (NSI) increased by 0.62 points to wrap the session at 763.24 points compared with the 762.62 points recorded in the previous session.
Securities worth N10.1 million were bought and sold by traders at the market on Wednesday compared with the N1.8 million securities transacted a day earlier, indicating an increase of 462.5 per cent.
However, the volume of the securities went down by 18.9 per cent as investors traded only 72,550 units, 18.9 per cent lower than the 89,440 units transacted in the preceding session.
The transactions were carried out in 20 deals as against the 11 deals executed on the bourse on Tuesday, implying a decline of 81.8 per cent rise.
AG Mortgage Plc remained the most traded stock by volume (year-to-date) with 2.3 billion units valued at N1.2 billion, Central Securities Clearing System (CSCS) Plc stood in second place with 674.4 million units worth N14.1 billion, while Food Concepts Plc was in third place with 146.5 million units valued at N127.2 million.
On the flip side, CSCS Plc was the most active stock by value (year-to-date) with 674.4 million units exchanged for N14.1 billion, VFD Group Plc was in second place with 10.9 million units worth N3.2 billion, while FrieslandCampina Plc was in third place with 9.7 million units valued at N1.3 billion.
Crude Oil Drops as Economic Worries Offset Tighter Supply Signals
By Adedapo Adesanya
Prices of crude oil were in red on Wednesday as worries about a weaker global economy offset data showing a weekly drawdown in crude stockpiles, indicating supplies remained tight.
Investors are also worried a slowing economy could dent energy demand as central banks hike interest rates to battle inflation, causing the price of the Brent crude to fall yesterday by 1.75 per cent or $2.06 to $115.90 per barrel, with the United States West Texas Intermediate (WTI) dropping 1.98 per cent or $2.21 to $109.50 a barrel.
US crude inventories fell last week even as production hit its highest level since April 2020 during the first wave of the coronavirus pandemic.
Even comments from the US central bank chief did nothing to quell the fear as prices went down.
The US Federal Reserve Chair, Mr Jerome Powell, announced that the economy would not be allowed to slip into a “higher inflation regime” even if it means raising interest rates to levels that put growth at risk.
The oil market had been propelled in the previous session as concerns over tight supplies due to Western sanctions on Russia outweighed fears that demand may slow in a potential future recession.
Analysts are concerned that Saudi Arabia and the United Arab Emirates (UAE) may not have enough spare capacity to make up for the lost Russian supply.
French President, Mr Emmanuel Macron, said this week he was told these producers will struggle to increase output further.
However, the UAE energy minister said the country, which is producing about 3 million barrels per day, has some spare capacity above its OPEC quota of 3.17 million barrels per day.
The Organisation of the Petroleum Exporting Countries (OPEC) and its allies such as Russia, which form the OPEC+ group, began a series of two-day meetings on Wednesday and will hold its official meeting on Thursday.
There are no indications that there will be changes to the current level of output as was agreed earlier this month.
At its last meeting in early June, OPEC+ sped up production cuts and agreed to raise output each month by 648,000 barrels per day in July and August, up from earlier increases of 432,000 barrels per day.
Naira Plunges to New Low at Spot Market, Trades N610/$1 at Parallel Market
By Adedapo Adesanya
The Naira on Wednesday, June 29 depreciated to its lowest level in the Investors and Exporters (I&E) segment of the foreign exchange (FX) market.
Amid a biting forex crunch, the local currency fell by N3.88 or 0.80 per cent against the US Dollar to close at N424.88/$1 versus the N421.00/$1 it was sold on Tuesday despite a decline in the value of transactions at the spot market.
According to data from the FMDQ Securities Exchange, the turnover for the midweek session was $112.83 million, 45.4 per cent or $93.82 million lower than the turnover of $206.65 million published the day before.
Also, in the parallel market, the domestic currency reported a dismal performance against the greenback as it lost N1 to quote at N610/$1 compared with the previous day’s value of N609/$1.
However, the value of the Naira to the Dollar remained unchanged at the Peer-to-Peer market window at N619/$1.
In the interbank segment of the market, the Naira appreciated against the British currency – the Pound Sterling and the Euro.
Against the Pound Sterling, it was strengthened by N3.91 to N505.91/£1 from N509.82/£1 and against the Euro, it gained N1.90 to settle at N437.59/€1 versus N439.49/€1 on Tuesday.
Meanwhile, four of the 10 tokens monitored by Business Post closed in the green territory, with the TerraClassicUSD (USTC) recovering more grounds as it traded higher by 59.9 per cent to $0.0691. Dogecoin (DOGE) rose by 5.4 per cent to trade at $0.0707, Litecoin (LTC) went up by 1.9 per cent to settle at $54.15, while Bitcoin (BTC) added 0.3 per cent to its value to close at $20,315.78.
However, Binance Coin (BNB) recorded a 4.7 per cent fall to sell at $221.44, Ethereum (ETH) depreciated by 3.7 per cent to $1,116.72, Solana (SOL) decreased by 3.6 per cent to $34.68, Ripple (XRP) recorded a 1.9 per cent slide to sell for $0.3329, Cardano (ADA) dropped 0.2 per cent to trade at $0.4722, while the US Dollar Tether (USDT) moved downwards by 0.02 per cent to $0.9989.
Latest News on Business Post
- Funke Akindele’s Second Marriage Collapses as JJC Skillz Quits June 30, 2022
- FrieslandCampina Boosts NASD OTC Bourse by 0.08% at Midweek June 30, 2022
- Crude Oil Drops as Economic Worries Offset Tighter Supply Signals June 30, 2022
- Naira Plunges to New Low at Spot Market, Trades N610/$1 at Parallel Market June 30, 2022
- Why We Chose Birmingham Our First UK Office—Kora June 30, 2022
- Local Bourse Closes in Stalemate on Mixed Sentiments June 30, 2022
- NNPC Rules Out Return of Subsidy on Diesel June 29, 2022
- CAF Mulls Postponing AFCON 2023 in Cote d’Ivoire June 29, 2022
- Hakeem Baba-Ahmed’s Comments on Peter Obi Soothe Igbo Pressure Group June 29, 2022
- Nigeria Grows Active Internet Subscribers by 0.62% in Q1 2022 June 29, 2022