The info was revealed by crypto market data provider Nomics, which has also pointed out that the daily volumes has shot up 950% from a mere $22.80 million on January 6.
With the surge in PayPal’s crypto trading volume coming against the backdrop of Bitcoin’s price rally to all-time high of $41,950, the US-headquartered payment processing company seems to be gaining prominent among small scale investors.
Alex Saunders of Nuggets News opined that the sharp rise in PayPal’s volume is probably an indication of rising adoption among retail investors. He tweeted “retail has arrived.”
Even though several crypto enthusiasts have appreciated PayPal’s entry into the crypto sector and leading many first time investors in digital assets, there are cynics who believe that the firm has set up a “gated” crypto community that does not facilitate withdrawals. Toomas Zobel, a crypto investor, believes that the sharp rise in volume could have been a result of retail interest:
Retail has arrived. @PayPal cleared $242M in crypto sales yesterday. That’s nearly double the previous record. 🌐📲✅ #Bitcoin #Ethereum #BullMarket pic.twitter.com/dnoPlADhla
— Alex Saunders 🇦🇺👨🔬 (@AlexSaundersAU) January 12, 2021
“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.”
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
Arguments about the significance (bullish or bearish) of PayPal’s crypto trading volume has arisen after Antoni Trenchev, CEO of Nexo, opined that Bitcoin’s latest decline from $41,000 levels was led by retail investors scurrying to book profits.
PayPal offers crypto buying and selling facilities through ItBit exchange run by Paxos. Back in October, PayPal opted for ItBit to manage its crypto transactions after rolling out crypto trading services.
PayPal intends to offer its crypto services to over 26 million merchants in the months ahead, paving way for further adoption of cryptos and demand for its services.