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A Twitter user, however, countered Allaire’s opinion on USDC and PayPal.
The CEO and co-founder of Circle Jeremy Allaire is confident in the USD Coin (USDC) and believes that the coin is about to exceed PayPal Holdings Inc (NASDAQ: PYPL). According to Allaire, Circle’s USDC is on the way to surpass the payments giant in the value of transacted dollars. At the time of writing, USDC is ranked 14th on CoinMarketCap and is up 0.05% to $1.00. With a market cap of over $10 million, the stablecoin has jumped 5.22% in its 24-hours trading volume.
Allaire noted his bullish prediction on the USDC in a tweet posted on the 6th of April. He said:
“In the last year, there has been over half a trillion dollars in on-chain USDC transactions volume. For perspective, that’s already about 50% of the total payment volume for PayPal in 2020. Flippening coming soon.”
Objection to Jeremy Allaire Comment on USDC vs PayPal
A Twitter user, Garreth McDaid, however, countered Allaire’s comparison. In response to the CEO’s tweet, the Twitter user noted that PayPal and USDC are not the same and should not be compared. The user added that transactions on PayPal are for payments of goods and services. On the other hand, “USDS is primarily speculation.”
According to an analysis by Statista, PayPal transaction volume for 2020 grew by about one-third over what was recorded in the previous year. In 2019, the payments giant saw a total payment volume of $712 billion. PayPal’s payment volume for 2020 was up 31.5% from the previous year to $936 billion. In addition, the company recorded $277 billion in its net payment volume in the last quarter of 2020. The 2021 Q4 payment volume represented a 39.5% growth year-on-year.
PayPal is currently at premarket trading of $253.29, a 0.04% increase over its previous close of $253.19. PayPal has only been increasing in the last twelve months. The company jumped 141% over the past year and gained more than 8% in its year-to-date record. In the last three months, PayPal has jumped 11.62% and has advanced by nearly 5% over the past month. In the last five days, PayPal has upped 4.26%.
Stablecoins See Increase in Trading Volume
At press time, data on Messari shows that adjusted daily volume for USDC is at $1.5 billion.
Cointelegraph reported that stablecoin Tether (USDT) hit more than $600 billion in its cumulative transaction volume in October last year. Months after, USDT reached $780 billion in the total volume of transactions towards the end of the year. Messari currently reports that USDT’s adjusted daily volume is $9.8 billion. Generally, there was an increase in the daily volume for stablecoins in 2020 Q4.
Furthermore, USDC has gained over 1,500% over the last 12 months and has 11.3 billion in circulation. The coin remains the second-largest stablecoin with market value.