The e-commerce giant Paypal’s stock price soared to an all-time high of $ 223.16 on Monday, December 14. Since November 12, when the payments giant opened the way for its US customers to begin cryptocurrency trading, the stock rose by 17%.
The stock’s record-breaking performance comes after Paypal recently reported a decline in its third-quarter earnings in October. While that performance forced Paypal not to provide preliminary guidance for 2021, however, there is a belief that the cryptocurrency trade service will lead to a turnaround for the company.
To illustrate, according to one report, Paypal bulls expect “penetration of total retail spending to continue to grow this holiday shopping season during the coronary virus pandemic.” In support of these bullish sentiments, the report quotes Bryan Keane, an analyst at Deutsche Bank as saying:
A recent PYPL survey revealed that 54% of PYPL users are interested in its crypto offerings and we believe there has been a strong interest in demand so far. Even more powerful is the frequency of visits to the PYPL commerce portal by crypto users, which will result in higher customer engagement and more monetizable transactions.
Paypal Customers Buy All New Mining BTC
Meanwhile, starting in early 2021, Paypal customers will also be able to use cryptocurrencies to shop at the 28 million merchants on its network. This will likely lead to an increased demand for cryptocurrencies from Paypal clients and ultimately an increase in revenue for the company.
Meanwhile, as Paypal’s stock hit a new high, Bill Barhydt, CEO and co-founder Abra tweeted that demand for bitcoin on the pay-only platform is now outstripping the daily supply of pieces new money. Barhydt wrote:
Paypal (on its own) is now fulfilling more demand for bitcoin than the amount of bitcoin being created daily. 2021 or 22 is very likely to see bitcoin retail ETFs. Demand is likely to increase by 100x then. Although I would discourage using Paypal to buy bitcoin (Abraglobal is the way)… wow.
Still, despite the influence of Paypal’s crypto service on BTC’s price, some bitcoiners like Barhydt are still wary of the implications of the company’s crypto policies on adoption efforts. Paypal has previously said that its customers will not be able to withdraw or transfer their crypto funds to outside wallets. However, others like Twitter user Anthony Acquadro argue that those involved in expanding the space must be “welcomed.”
Meanwhile, at the time of writing, Paypal’s stock had pulled back to $ 220.79, a price that, however, is still “above a cup base purchase point of 215.93.”
Do you think Paypal’s stock surge is related to the company’s crypto service? Tell us what you think in the comments section below.
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