PayPal has boasted nearly double its previous cryptocurrency volume transactions according to cryptocurrency market aggregator Nomics.
As reported, the global payments platform recorded a massive $242 million USD worth of cryptocurrency transacted on the platform yesterday, breaking the record by almost double its previous record of $129 million USD earlier this year. In the last two weeks, the daily moving volume of cryptocurrency on the platform has spiked by nearly 1000%.
— Alex Saunders 🇦🇺👨🔬 (@AlexSaundersAU) January 12, 2021
As noted by Nuggets News’ Alex Saunders above, this spike in volume could be a possibility of increased retail adoption, trajected by the bullish rally of the cryptocurrency market.
Cryptocurrency transactions on PayPal
Many users in the cryptocurrency community, whether traders or investors, have expressed excitement about the adoption opportunities for new investors. However, the platform has received backlash for the lack of withdrawal features. As a result, it’s difficult to tell whether the volume of transactions on the payments platforms is because of new users buying cryptocurrency or whether the volumes are selling. Given the price of Bitcoin and the rise of value in the market, however, it’s unlikely that the volumes are made from investors selling off their cryptocurrency.
Yes it does. In the initial stages, all volume was buy volume because no one on PayPal had Bitcoin within their gated platform. But by now, there should be substantial vol that could be used for selling too, especially considering that they are likely in profits.
— Marshie (@marshiecrypto) January 12, 2021
This being said, there is uncertainty whether the volumes will have a longer-term bullish or bearish mark on the industry. Analysts speculate that any correction in the market or crashes that Bitcoin might face are likely as a result of retailers investing and selling to establish profitable trades. PayPal’s significant volumes could lead to investors dumping, which would have a bearish impact on the market overall, despite short-term bullish activity.