Unpriced Announcement: Bloomberg Expert Anticipates PayPal Stablecoin’s Ripple Effect on Ethereum
According to Bloomberg Intelligence’s crypto market analyst, Jamie Coutts, the markets have yet to factor in the implications of PayPal’s introduction of its own stablecoin, a move that is expected to profoundly impact Ethereum (ETH).
Coutts highlights the substantial size disparity between PayPal’s network. Boasting 435 million active accounts, and Ethereum’s L1/L2 active addresses at 1 million. He points out that since PayPal’s new stablecoin, PYUSD, operates on the ERC-20 token standard. Even a minor conversion of PayPal users to PYUSD could yield a considerable effect on Ethereum. Coutts emphasizes that the magnitude of this announcement’s influence on Ethereum is not adequately priced in. And if just 1% of PayPal’s users (approximately 4.35 million) convert a dollar balance to PYUSD and begin utilizing it, the repercussions for both the Ethereum ecosystem and its native asset. ETH would be substantial.
Additionally, Coutts conducts a deeper analysis of Ethereum’s current state. Suggesting that the platform might be undervalued due to the considerable surge in fee revenue in comparison to a relatively modest price increase. He cites a similar divergence in the past that preceded the 2020 bull run. Where fees surged by 176% while prices only increased by 53%. Coutts interprets this as a sign of Ethereum’s robust performance. And a potential harbinger of a deepening and widening moat for the platform.
Clever Robot News Desk 15th August 2023
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