ItBit, the service provider that handles PayPal transactions, surpassed $125 million in daily trading volume on 7 January.
Trading volume has grown exponentially since PayPal began supporting digital assets.
Volume is expected to continue to grow as PayPal dives deeper into the asset class.
Daily crypto transactions on PayPal have surpassed $125 million, according to trading volume data from ItBit, the company that handles transactions for the payments giant.
Daily trading volume on PayPal: Nomics
PayPal’s crypto volume pump
The 24-hour trading volume on 7 January shows that Bitcoin Circuit transactions have reached an all-time high – with Bitcoin and Ethereum forming the majority. This represents a five-fold increase in trading volume since PayPal recently began supporting cryptocurrencies.
The ItBit exchange is owned by Paxos, which PayPal selected to process its transactions in October 2020. Data from Nomics shows a significant increase in the exchange’s volume since the collaboration. PayPal currently has about 340 million users, but most of them do not have access to the service.
The significant volume suggests that PayPal could play a role in bringing the asset class to a wider audience. PayPal is also expected to offer cryptocurrency services to its 26 million merchants in the coming months.
With new updates and enhancements expected to come soon, this could be the start of a flood of retail investors. Existing users will be able to buy bitcoin (Go to Buy Bitcoin with Credit Card Guide) and store bitcoin on the platform – and this user base could become very lucrative for the company.
Advantageous market position
ItBit’s transaction volume growth comes as little surprise in the wake of the market rally that has seen Bitcoin surpass $37,000. Its market capitalisation has now shot past $1 trillion – about a third of private investment in gold.
Analysts debate whether PayPal’s entry into the market will have a significant impact. Most agree that the true impact will only be visible this year, when the service has established itself in the market.
This year will also see the service expand internationally, and there may be more features in the pipeline.
PayPal’s support for cryptocurrencies is seen as a big win by the cryptocurrency community – a sign of legitimacy.
However, there has been occasional criticism – as some users report being suspended after trading. PayPal has subsequently worked on adjusting the buying limits in response to the enormous interest shown by users.