PayPal’s (PYPL) stablecoin, PayPal USD (PYUSD), recently hit a significant milestone. As of August 26, 2024, it surpassed a market capitalization of $1 billion, reflecting substantial growth from its launch in August 2023.
Importantly, PYUSD’s user activity has increased despite a slowdown in the crypto market, with monthly active wallet addresses jumping from 9,400 in May to over 25,000 in July.
PayPal is a global online payment platform that allows individuals and businesses to send and receive money electronically.
Key Factors Supporting PYUSD’s Growth
It is worth highlighting that PYUSD was initially issued on the Ethereum (ETH-USD) blockchain, but expanded to the Solana (SOL-USD) network in late May. Since then, most PYUSD tokens are now circulating on Solana, fueling its growth.
Additionally, PYPL’s collaboration with Paxos, the blockchain infrastructure firm responsible for managing and issuing PYUSD, has proven fruitful.
Moreover, PayPal has actively pursued partnerships to expand the reach of PYUSD. This includes collaborations with Anchorage Digital to provide rewards for holding PYUSD. Also, it partnered with Crypto.com, Phantom, and Paxos for PYUSD’s launch on the Solana blockchain.
Furthermore, PayPal’s partnership with MoonPay allows users to easily purchase cryptocurrency using their PayPal accounts. MoonPay is a financial technology company that provides a platform for buying and selling cryptocurrencies.
Is PYPL a Buy or Sell?
PayPal’s strategic partnerships and efforts to improve PYUSD’s accessibility are impressive. Nevertheless, significant competition from established giants like Tether (USDT-USD) and USDC (USDC-USD) remains a key concern.
Overall, Wall Street analysts are cautiously optimistic about PYPL stock. It has a Moderate Buy consensus rating based on 18 Buy and 16 Hold recommendations. The analysts’ average price target on PayPal stock of $75.96 implies a 5.44% upside potential from current levels. The stock has gained 17.3% year-to-date.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
