PayPal Holdings ( (PYPL) ) has risen by 8.39%. Read on to learn why.
PayPal Holdings has seen a notable stock price increase of 8.39% over the past week, driven by strategic moves in the cryptocurrency market. The company has partnered with Coinbase to eliminate fees on transactions involving its stablecoin, PayPal USD, which is pegged to the U.S. dollar. This initiative aims to boost the stablecoin’s market presence, which currently holds less than 1% of the dollar-tied stablecoin market.
The collaboration with Coinbase is part of a broader effort to enhance the utility and accessibility of PayPal USD. By removing transaction fees and developing stablecoin-based solutions, PayPal aims to address demand and expand its commercial applications. This move is seen as a positive step towards increasing the stablecoin’s adoption and market cap, which stands at $730 million.
Despite the recent stock surge, PayPal faces challenges in the fintech space, including macroeconomic uncertainties and intense competition. Analysts have expressed concerns about the company’s ability to meet its growth targets, particularly in its Checkout offering. However, the recent developments in the cryptocurrency sector have provided a boost to PayPal’s stock, reflecting investor optimism about its strategic initiatives.