this is going to be a great wall hanging
I would probably find a redwork emdroidery design for something beachy and put it in the loops. I might put different designs in the alternating squares. I might do some circles for quilting to highlight the pattern. It really doesn't matter because you have much better ideas than I and you will find the perfect thing or possibly even just consider it finished.
I think I might finish with a pink border then quilt little dolphins in the circles you've created on the blue border.
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