PayPal has definitely contributed to the massive boom in the crypto market.
It’s been recently revealed that back in October, PayPal announced via a press release that they are launching a new service that;’s enabling users to buy, hold and sell crypto.
PayPal triggered Bitcoin supply crunch
It’s been reported that PayPal managed to trigger a Bitcoin supply crunch after allowing its users to buy BTC for the very first time, says CEO of Pantera Capital.
In a brand new post, Dan Morehead said that PayPal customers are buying 70% of the new supply of BTC that’s entering the market.
“PayPal’s crypto infrastructure provider is Paxos. Prior to PayPal’s integration of crypto, itBit, the Paxos-run exchange, was doing a fairly constant amount of trading volume – the white line in the chart below,” he said.
He continued and pointed out that “When PayPal went live, volume started exploding. The increase in itBit volume implies that within four weeks of going live, PayPal is already buying almost 70% of the new supply of Bitcoin.”
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As the online publication the Daily Hodl noted, PayPal added support for Bitcoin, Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC) for all of its US customers on November 12th.
There are a lot of crypto enthusiasts who are wondering why PayPal has skipped over XRP, and it seems that they are eventually getting some answers.
Find out more details about this subject in our previous article.