Recent reports reveal that PayPal’s stablecoin announcement has yet to be reflected in market prices.
According to a strategist from Bloomberg, the launch of PayPal’s own stablecoin is expected to have a positive impact on Ethereum (ETH).
Launch of PayPal’s stablecoin’s impact
Jamie Coutts, a crypto market analyst at Bloomberg Intelligence, points out that the market is currently undervaluing the fact that PayPal’s network is significantly larger than Ethereum’s by hundreds of times.
According to Coutts, since PYUSD is an ERC-20 token, even a small number of PayPal users switching to it will have a significant impact on Ethereum.
He believes that the recent announcement from PayPal has not yet been factored into the market.
Paypal currently has 435 million active accounts, whereas Ethereum has only 1 million active addresses on L1/L2.
If just 1% of those PayPal users convert a balance of one dollar to PYUSD (4.35 million), the Ethereum ecosystem and ETH, will experience significant ramifications.
Coutts also suggests that Ethereum’s leading smart contract platform may be undervalued when considering its substantial growth in fee revenue compared to its modest increase in price.
He believes that such a divergence preceded the bull run in 2020. In 2023, fees have increased by 176% while the price has only gone up by 53%.
This relationship was indicative of the previous bull market, where fees outpaced prices after a two-year decline.
Coutts concludes that Ethereum’s moat is deepening and widening, and its performance is very strong, exceeding expectations regarding the erosion of fee income from L2 expansion.
Rocket Pool team sells RPL tokens to Coinbase Ventures
The Rocket Pool team sold RPL tokens to Coinbase Ventures, and it is thrilling news to share.
The RPL token is used for governance and collateral.
Coinbase Ventures has expressed its admiration for the Rocket Pool team’s dedication to creating one of the largest decentralized staking networks in the past six years.
They believe that scaling Ethereum’s infrastructure in a safe and decentralized way is crucial to bringing more users onto the blockchain.
