Crypto wallet provider Payy launches Ethereum L2 with built-in transaction privacy

💡 DMK Insight

Payy’s new layer-2 network could shift how ERC-20 transfers are handled, and here’s why that matters: By routing transfers through privacy pools by default, Payy is addressing a growing demand for enhanced privacy in crypto transactions. This could attract users who are concerned about on-chain visibility, potentially increasing transaction volume on its platform. For traders, this means a possible uptick in demand for ERC-20 tokens as users migrate to platforms that prioritize privacy. Keep an eye on how this innovation impacts liquidity and trading volumes in the ERC-20 space. However, there’s a flip side. If Payy’s network gains traction, it could lead to increased scrutiny from regulators concerned about anonymity in crypto transactions. Traders should monitor regulatory responses closely, as they could create volatility in the market. Watch for key metrics like transaction volume and user adoption rates over the next few weeks to gauge the network’s impact on the broader ERC-20 ecosystem.