Global Payment Provider PayPal has doubled its previous crypto volume record, with $242 million worth of digital assets changing hands on the network since Jan. 11.
According to crypto industry data aggregator Nomics, yesterday’s trade dwarfed PayPal’s previous high $129 million on Jan. 6. Since January 1, the daily value has risen by 950 percent from $22.8.
With the increase in PayPal’s volume coming in the midst of the Bitcoin boom to fresh all-time highs, the U.S.-based payment company seems to be gaining traction among retail traders. Nuggets News Alex Saunders argued that the peak in PayPal’s amount is likely to be an indication of growing approval by retailers, tweeting: “Retail has arrived.”
— Alex Saunders 🇦🇺👨🔬 (@AlexSaundersAU) January 12, 2021
Despite many in the crypto community celebrating PayPal’s crypto entry for pushing new consumers to digital assets, some criticised PayPal for establishing a “closed” crypto community that does not accept withdrawal functionality—Twitter user Toomas Zobel speculating that the volume spike may have resulted from retail capitulation:
“Is there a way to view whether this was buy or sell volume? In this huge dump, it may just be retail sellers capitulating rather than creating buying pressure.”
Discussions as to whether PayPal’s volume milestone is bullish or bearish came shortly after Nexo CEO Antoni Trenchev speculated Bitcoin’s latest plunge of over $40,000 was caused by retail investors scrambling to make money.
The crypto facilities of PayPal are obtained via the ItBit exchange of Paxos. PayPal picked ItBit to manage its crypto transactions by releasing digital asset trading services in October 2020.
PayPal is planning to provide cryptocurrency services to its 26 million retailers in the coming months, likely to fuel more demand for the company’s crypto services.
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