Popular cryptocurrency wallet MetaMask is integrating PayPal to allow its users to buy the second-largest cryptocurrency by market capitalization, Ethereum (ETH), directly from their wallets.

In a research report looking back on the year, analysts at Citi have said that leverage, volatility, and open interest have “faded as investor battle with declining prices.” Retail interest, the report reads, has “broadly diminished as prices have declined.”

One of FTX Group’s top executives told Bahamian regulators days ahead of FTX’s collapse that the exchange’s founder, Sam Bankman-Fried, had likely funnelled customer fundsto his hedge fund Alameda Research.

Top stories in the Crypto Roundup today:

• MetaMask Integrates PayPal for ETH Purchases
• Crypto Market Leverage, Open Interest are Historically Low: Citi
• Top FTX Exec Tipped Off Bahamian Authorities
• Bitcoin Futures Contracts Traded on CME Reaches Record High

MetaMask Integrates PayPal for ETH Purchases

Popular cryptocurrency wallet MetaMask is integrating PayPal to allow its users to buy the second-largest cryptocurrency by market capitalization, Ethereum (ETH), directly from their wallets.

The integration will be similar to PayPal’s checkout feature at online stores like Etsy and eBay, as users will need to log into their PayPal accounts before making a purchase. In a statement, the company said select U.S.-based MetaMask users will be able to use the feature now and that it will roll out to other U.S. users in the coming weeks.

MetaMask is a popular gateway into Web3, and adding PayPal to the wallet could help broaden the user base for some of the applications within the Web3 ecosystem by removing the complexity of buying crypto at an exchange and sending it to a wallet.

MetaMask product manager Lorenzo Santos said in a statement:

“This integration with PayPal will allow our U.S. users to not just buy crypto seamlessly through MetaMask, but also to easily explore the Web3 ecosystem.”

PayPal started letting users on its platform buy, sell, and hold crypto in 2020. Last year, it launched a “checkout with crypto” feature letting users pay with Bitcoin, Ethereum, Litecoin and Bitcoin Cash.

Crypto Market Leverage, Open Interest are Historically Low: Citi

In a research report looking back on the year, analysts at Citi have said that leverage, volatility, and open interest have “faded as investor battle with declining prices.” Retail interest, the report reads, has “broadly diminished as prices have declined.”

The decline has “coincided with a more general decline in volatility,” and in institutional interest. Per the analysts, led by Joseph Ayoub, there was a “loss of trust” following the failure of major centralized entities that was reflected in exchange-traded product (ETP) flows.

The report adds that against a macro backdrop of high inflation, rising interest rates and tightening financial conditions, the total capitalization of the crypto market dropped 61% compared to the S%P 500 index’s 18% drop.

Bitcoin’s open interest dropped from more than $23 billion to $9 billion, the note said.

Top FTX Exec Tipped Off Bahamian Authorities

One of FTX Group’s top executives told Bahamian regulators days ahead of FTX’s collapse that the exchange’s founder, Sam Bankman-Fried, had likely funnelled customer fundsto his hedge fund Alameda Research.

Ryan Salame, co-chief executive of FTX’s Bahamas operating entity, informed Bahamian authorities on November 9 that FTX customer funds had been used to cover losses at the hedge fund.

Salame, according to Bahamian court records, identified Sam Bankman-Fried and two other FTX executives as potentially being responsible. The allegation triggered a referral to the Bahamas police, which led to the appointment of liquidators.

As only Bankman-Fried has been charged so far, many speculate several of his business associates may be cooperating with prosecutors. The disgraced former FTX CEO has been indicted by the US Department of Justice and arrested by Bahamian police pending possible extradition to the US.

Bankman-Fried is now in a Bahamian jail after being denied bail, and is accused of defrauding FTX customers by funnelling billions of dollars into his trading firm. Prosecutors have called the case “one of the biggest financial frauds in American history.”

Bitcoin Futures Contracts Traded on CME Reaches Record High

In November, a record number of 293,332 Bitcoin futures contracts were traded on the CME, representing a 4.99% increase from the previous month.

Moreover, the number of Ethereum futures contracts traded also rose, with 168,664 contracts traded, representing a 27.6% increase from October.

Read more in CryptoCompare’s latest Exchange Review.

State of the Crypto by Top Tier Exchange Volume

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