The global payment provider PayPal's previous record of encrypted transactions doubled, and during January 11, the digital assets traded on the platform were valued at $242 million.
According to data from Nomics, a crypto market data aggregator, yesterday's trading dwarfed the $129 million volume record set by PayPal on January 6. Since January 1, the daily volume has increased by 950% from $22.8.
As Bitcoin's rally hit a record high, PayPal's transaction volume surged, and the U.S.-based payments company seems to be gaining popularity among retail traders. Alex Saunders of Nuggets News asserted that the surge in PayPal’s volume may be a sign of increased adoption by retail traders, and wrote on Twitter: "retail has arrived."
Although many in the crypto community praised PayPal's entry into crypto to promote the use of digital assets by new users, others have criticized PayPal for creating a "gated" crypto community that does not support withdrawal functionality - with Twitter user Toomas Zobel speculating that the surge in transaction volume may be due to the surrender of retailers:
"Is there a way to view whether this was buy or sell volume? In this huge dump, it may just be retail sellers capitulating rather than creating buying pressure."
The discussions about whether PayPal's volume milestone is bullish or bearish come shortly after Nexo CEO Antoni trenchev speculated that Bitcoin's recent collapse from more than $40000 was driven by retail investors eager to make profits.
PayPal's crypto service can be accessed through Paxos' ItBit exchange. PayPal chose ItBit to process its crypto transactions after launching its digital asset trading services in October 2020.
PayPal is expected to provide cryptocurrency services to its 26 million merchants in the next few months, which may drive further demand for the firm's crypto services.