Crypto market analyst at Bloomberg Jamie Coutts has shared his take on the recently launched Paypal stablecoin PYUSD and the impact it may have on other cryptocurrencies — Ethereum (ETH) in particular.
Coutts focused on the number of people that use PayPal on a daily basis, comparing it to the user base of Ethereum — 435 million active accounts of the former versus one million of active wallets of the latter.
If just 1% of active PayPal users convert their USD balance into PYUSD (that would be the equivalent of $4.35 million) and begin using their stablecoins, this would cause massive ramifications to the Ethereum ecosystem and the ETH token itself.
The @Paypal announcement is not priced in. #Paypal has 435M active accounts vs #Ethereum L1/L2 Active Addresses 1M.— Jamie Coutts CMT (@Jamie1Coutts) August 10, 2023
If 1% covert a $ balance to $PYUSD (4.35M) and begin to use it then the ramifications for the #Ethereum ecosystem and $ETH, the asset, are massive. pic.twitter.com/cH3OH9Dmip
Even though many within the crypto community, on the X app, have criticized PYUSD as heavily centralized and found out that the code of the stablecoin allows PayPal to freeze and wipe users' crypto balances at will, some still think that the stablecoin is very important for the global adoption of crypto.
Now, Houbi exchange plans to be the first to list PYUSD on its platform for trading against other cryptocurrencies.