PayPal Crypto Deposits Hit Record High of $943M Amidst Surge
Key Points:
- PayPal customers’ crypto deposits rose to $943M, up 56% from the previous quarter according to its latest Q1 2023Â SEC filing.
- Bitcoin was the most popular, with a 71% increase quarter-over-quarter, followed by Ethereum and “Other” (Bitcoin Cash and Litecoin).
- The total crypto market cap saw a 49% increase from $796B to $1,183B between December 31st, 2022 and March 31st, 2023, indicating a partial recovery.
In its latest Q1 2023 SEC filing, PayPal announced that it has seen a 56% increase in customers’ crypto assets, which now amount to $943 million.
This is a significant increase from the prior quarter, where customers’ crypto deposits amounted to $604 million as of December 31st, 2022.
PayPal’s cryptocurrency services enable users in certain regions to buy, hold, sell, and pay for purchases using cryptocurrencies. However, the company doesn’t have any cryptocurrencies on its balance sheet other than those belonging to its customers. Given the increasing interest in cryptocurrencies, this latest surge in customer holdings suggests a growing trend in the adoption of digital currencies.
The table below shows Bitcoin was the most popular cryptocurrency in terms of current holdings and quarter-over-quarter percentage increase. It spiked by 71% to just short of half a billion dollars. This indicates that Bitcoin is still the most popular cryptocurrency among PayPal’s customers, as it is with many other investors worldwide.
The second-most held cryptocurrency, Ethereum, saw a 45% increase in deposits. Meanwhile, “Other,” consisting of Bitcoin Cash and Litecoin, saw gains of plus 30%. Ethereum’s popularity among PayPal’s customers is likely due to its wider adoption among businesses and developers, as well as its ability to facilitate smart contracts and decentralized applications.
PayPal stated that the risks of accounting for cryptocurrency, including “technological, legal, and regulatory risks,” meant crypto assets are recorded as both a liability and an asset on their books. This highlights the importance of risk management in the cryptocurrency industry, where the regulatory landscape is still evolving.
Last year was a tumultuous one for cryptocurrency, characterized by CeFi bankruptcies, particularly the FTX scandal. Nonetheless, by the first quarter of 2023, the total crypto market cap saw a significant increase of 49%, rising from $796 billion on December 31st, 2022, to $1,183 billion on March 31st, 2023 – suggesting the market has recovered to a degree.
Without a detailed breakdown of PayPal customers’ holdings, it is unclear precisely how much of the 56% quarter-over-quarter increase in deposits relates to increased crypto holdings or the increase in dollar value over that period. However, using the crude measure of a 49% increase in total market cap between quarters, it is probable that the majority of the increase relates to an increase in the dollar value of holdings – rather than a jump in customers’ deposits. The continued growth of the cryptocurrency market, combined with PayPal’s increasing adoption of digital currencies, highlights the ongoing evolution of the financial industry towards a more digital, decentralized future.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Annie
Coincu News
Author
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PayPal Crypto Deposits Hit Record High of $943M Amidst Surge
Key Points:
- PayPal customers’ crypto deposits rose to $943M, up 56% from the previous quarter according to its latest Q1 2023Â SEC filing.
- Bitcoin was the most popular, with a 71% increase quarter-over-quarter, followed by Ethereum and “Other” (Bitcoin Cash and Litecoin).
- The total crypto market cap saw a 49% increase from $796B to $1,183B between December 31st, 2022 and March 31st, 2023, indicating a partial recovery.
In its latest Q1 2023 SEC filing, PayPal announced that it has seen a 56% increase in customers’ crypto assets, which now amount to $943 million.
This is a significant increase from the prior quarter, where customers’ crypto deposits amounted to $604 million as of December 31st, 2022.
PayPal’s cryptocurrency services enable users in certain regions to buy, hold, sell, and pay for purchases using cryptocurrencies. However, the company doesn’t have any cryptocurrencies on its balance sheet other than those belonging to its customers. Given the increasing interest in cryptocurrencies, this latest surge in customer holdings suggests a growing trend in the adoption of digital currencies.
The table below shows Bitcoin was the most popular cryptocurrency in terms of current holdings and quarter-over-quarter percentage increase. It spiked by 71% to just short of half a billion dollars. This indicates that Bitcoin is still the most popular cryptocurrency among PayPal’s customers, as it is with many other investors worldwide.
The second-most held cryptocurrency, Ethereum, saw a 45% increase in deposits. Meanwhile, “Other,” consisting of Bitcoin Cash and Litecoin, saw gains of plus 30%. Ethereum’s popularity among PayPal’s customers is likely due to its wider adoption among businesses and developers, as well as its ability to facilitate smart contracts and decentralized applications.
PayPal stated that the risks of accounting for cryptocurrency, including “technological, legal, and regulatory risks,” meant crypto assets are recorded as both a liability and an asset on their books. This highlights the importance of risk management in the cryptocurrency industry, where the regulatory landscape is still evolving.
Last year was a tumultuous one for cryptocurrency, characterized by CeFi bankruptcies, particularly the FTX scandal. Nonetheless, by the first quarter of 2023, the total crypto market cap saw a significant increase of 49%, rising from $796 billion on December 31st, 2022, to $1,183 billion on March 31st, 2023 – suggesting the market has recovered to a degree.
Without a detailed breakdown of PayPal customers’ holdings, it is unclear precisely how much of the 56% quarter-over-quarter increase in deposits relates to increased crypto holdings or the increase in dollar value over that period. However, using the crude measure of a 49% increase in total market cap between quarters, it is probable that the majority of the increase relates to an increase in the dollar value of holdings – rather than a jump in customers’ deposits. The continued growth of the cryptocurrency market, combined with PayPal’s increasing adoption of digital currencies, highlights the ongoing evolution of the financial industry towards a more digital, decentralized future.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Annie
Coincu News
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