In its monthly blockchain letter, cryptocurrency hedge fund manager Pantera Capital claims that there is incredible demand for PayPal’s new cryptocurrency offering.
The payments giant is already gobbling up almost 70 percent of newly mined coins, according to the fund’s estimations.
PayPal and Square are gobbling up all new coins
Stablecoin operator Paxos was chosen to provide PayPal with cryptocurrency capabilities through its fiat-to-crypto itBit exchange that recently saw a massive surge in trading volumes.
Considering that it’s been only four weeks since PayPal’s pivot to crypto, Pantera Capital expects that the company’s platform will also absorb the whole new Bitcoin supply:
“The dashed horizontal line in the graphic represents the total supply of newly-issued bitcoins plus the original itBit volume. If their growth persists, PayPal alone would be buying more than all of the newly-issued bitcoin within weeks.”
In fact, together with Square’s Cash App, PayPal already accounts for over 100 percent of all freshly minted coins.
Cash App saw a 1,001 percent year-over-year increase in its Bitcoin revenue that soared above $1.6 bln in the third quarter of 2020.
After announcing its cryptocurrency service in late October, PayPal launched it for U.S. customers on Nov. 12. In 2021, PayPal plans to roll out its cryptocurrency features around the globe.
According to its Nov. 2 earnings call, the company now boasts more than 361 mln active users.
Pantera Capital sees triple-digit gains
After suffering a 34 percent loss in the aftermath of the mid-March “Black Thursday” collapse, Pantera Capital’s Bitcoin Fund is up 142 percent since the start of 2020.
Because of such major initial coin offerings such as Polkadot and Filecoin, its ICO Fund is up a whopping 281 percent.