JPMorgan Analysts: Ethereum (ETH) Receives a Significant Boost with PayPal's Stablecoin Launch - COINTURK NEWS
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JPMorgan Analysts: Ethereum (ETH) Receives a Significant Boost with PayPal’s Stablecoin Launch

3:05 am (57 days ago)
August 9, 2023

The king of altcoins continues to grow in terms of adoption, if not in price. Moreover, the recent move could yield promising results in the long run. JPMorgan analysts recently discussed the stablecoin launched by PayPal and its positive impact on the Ethereum network.

JPMorgan Analysts and Ethereum (ETH)

JPMorgan analyst Nikolaos Panigirtzoglo stated that the launch of PayPal’s stablecoin this week will increase the Total Value Locked (TVL) on the Ethereum network. TVL growth is a significant achievement that can drive up prices for layer1 and layer2 solutions. With this news, the value of ETH could increase as the network becomes more valuable.

“This could boost Ethereum activity and enhance its network utility as a stablecoin/DeFi platform. In other words, more companies in the future could use the Ethereum network (or layer2 solutions like Arbitrum) for their stablecoin or decentralized projects. This will also encourage others.”

Panigirtzoglou believes that Ethereum could provide more benefits than PYUSD, as the stablecoin could fill the void left by Binance‘s BUSD stablecoin, which faced regulatory pressure earlier this year and experienced a $20 billion contraction. If PYUSD fills this gap, the growth on the Ethereum network could be impressive.

Ethereum Transaction Fees

Despite its high transaction fees, Ethereum has a major advantage. Several experts criticized PayPal for this reason. However, we need to pay attention to a small detail. We recently saw one of China’s largest banks using the Ethereum network for the issuance of million-dollar tokenized assets. This means that the Ethereum network is already seen as the first choice for institutional players, and we should interpret PayPal’s decision in this way. Institutions trust Ethereum.

While its competitors criticize Ethereum for its transaction fees, the network appears to be much more reliable compared to alternatives. Its extensive node power highlights its decentralized nature. While most of today’s top alternatives rely on cloud companies, Ethereum users trust their own nodes. This makes it expensive but valuable.

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