MoonPay Acquires Helio for $175M

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Good Morning.

The market has been on a nice recovery in the past 36 hours, but with uncertainty still looming around altcoins. BTC continues to show its strength and different inflow dynamics compared to other major crypto assets, whereas AI agent sector is still down significant from its peak.

Our new podcast episode with 2025 predictions is up!

In Today's Email:

• What Matters: Helio $175M Acquisition 🤝 

• Case Study: Mid-Tier CEXs Growth 📈 

• Governance & Features: Sony Launches Soneium 🚀 

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WHAT MATTERS

MoonPay Acquires Helio for $175M

State of play: MoonPay has acquired Helio, a Solana-powered crypto payment processor, in a deal reportedly valued at $175M. MoonPay aims to enhance its trading and marketplace volume by integrating Helio's technology and expertise.

• MoonPay CEO Ivan Soto-Wright said the acquisition is an important step in advancing Moonpay’s vision for the future of payments.

• Helio supports payments in digital currencies like USDC, SOL, BTC, and ETH, and currently supports over 6,000 merchants and one million users.

• It has processed over $1.5B in transactions and integrated with platforms such as Discord, WooCommerce, and Shopify.

• MoonPay, which has over 20M users, recently partnered with PayPal in May to allow cryptocurrency transactions via PayPal accounts.

• In October, PayPal extended this functionality by enabling Venmo users to fund MoonPay accounts.

What’s next: This acquisition could influence the trajectory of crypto adoption by addressing scalability challenges and fostering confidence in digital asset payments among businesses and consumers alike.

Why it matters: The acquisition highlights the increasing convergence of traditional e-commerce platforms with crypto payment technologies, reflecting a broader shift toward decentralized finance in mainstream commerce.

Our take: MoonPay understand Solana’s push towards the PayFi narrative and wants to make sure that they acquire that market share.

For builders and investors: Payments, stablecoins, and anything CeDeFi will continue to be a novel and profitable sector in the next few years, even with all the existing companies.

• The key is in finding your unique edge and cheap cost of capital.

CASE STUDY

Mid-Tier Crypto Exchanges See Growth as Market Cap Hits $3T

December's cryptocurrency exchange volume surged to $2.94T, an 8.5% increase from November and the second consecutive month above $2T. Binance led with $1T in volume, but mid-tier exchanges showed notable growth.

• BitGet's volume doubled to $178B, while OKX and Huobi processed $177B and $95B, respectively, reflecting an evolving market structure.

• The shift highlights increased participation from APAC-based platforms and a more diverse investor base.

• The robust volumes were driven by rising retail participation, innovative products from smaller exchanges, and enhanced infrastructure, alongside broader institutional acceptance of crypto trading.

• The market's growth coincides with strong altcoin performance and anticipation of President Trump’s upcoming inauguration.

• The coming months will reveal if institutional activity sustains this momentum post-holidays.

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INSIGHTS

Crypto OTC Market Surges 106% in 2024

The cryptocurrency over-the-counter (OTC) market experienced a significant maturation in 2024, achieving an annual growth rate of 106%, according to Finery Markets' review.

• The year saw increased institutional activity, driven by the launch of Bitcoin and Ethereum ETFs, pro-crypto policies linked to President-elect Donald Trump, and growing institutional acceptance of digital assets.

• OTC trading saw record volumes in Q4, increasing 177% YoY, fueled by Bitcoin's rally past $100,000 and Ethereum's price surge post-election.

• Q2 also saw strong growth at 110%, boosted by the debut of spot Bitcoin ETFs, while Q1 and Q3 grew at rates of 80% and 78%, respectively.

• The report highlighted the rising dominance of stablecoins as a bridge between traditional and digital finance, with Q4 crypto-to-stablecoin trading activity surging 311% YoY, surpassing Visa’s transaction volumes.

• Analysts expect continued growth in 2025, with institutional demand and pro-crypto US policies fostering a favorable environment for mass adoption.

• The report speculated that Trump's proposed US Bitcoin reserve could catalyze global shifts, encouraging institutions and nations to adopt crypto strategies.

FEATURES & GOVERNANCE UPDATE

Sony Launches Soneium Mainnet

Sony Block Solutions Labs (BSL) announced the mainnet launch of Soneium, its Ethereum-based Layer 2 public blockchain.

• Developed using Optimism’s OP Stack and Superchain, Soneium aims to bridge Web2 and Web3 by fostering inclusivity, accessibility, and creativity.

• Since its testnet debut in August, Soneium has recorded 15.4M active wallet addresses and over 50M transactions.

• Targeting content creators, fans, and communities, the blockchain addresses issues like creator rights and equitable value distribution.

• With the mainnet launch, Sony plans to expand Soneium’s applications by integrating digital and physical user experiences.

• Sony BSL Director Sota Watanabe emphasizes Soneium's role in protecting intellectual property and fostering global fan engagement.

Other notable feature updates:

• ZKsync introduces EnsoBuild.

• Vertex launches on Sonic Labs.

• Curve Finance has launched its DEX on SonicLabs.

• Bluefin launches the Auto Rebalancer on Sui Network.

• Frax Finance launches the Frax Universal Interface (FUI).

QUICK BITES

• Soneium launches on mainnet.

• Moonpay acquires Helio for $175M.

• Chainalysis acquires Alterya for $150M.

• Deribit attracts buyers for potential acquisition.

• Tether is establishing headquarters in El Salvador.

• Spark targets up to $1.1B in direct exposure to Ethena.

• TON Foundation taps new president as it eyes US growth.

• Gensler says the SEC has 'never said' that BTC and ETH are securities.

• WLFI moves over $60M worth of ETH as part of 'treasury management.'

• Toshi memecoin surges 130% upon Coinbase listing roadmap addition.

• JPMorgan says XRP and SOL ETFs could bring in $13.6B in the first year.

• US, Japan, and South Korea issue joint statements against NK crypto thefts.

• Court orders SEC to explain why it denied Coinbase's request for crypto-specific rules.

NOTEWORTHY READS & MEME

• Luca Prosperi’s read on Usual Money.

• Pantera’s read on the year ahead in crypto.

• Circle’s read on the 2025 state of USDC economy.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.