Key Takeaways
PayPal’s PYUSD supply on Ethereum has tripled YoY to almost $1 billion, signaling growing institutional confidence and potential for Ethereum’s next rally.
The supply of PayPal’s dollar-backed stablecoin, PYUSD, has surged on Ethereum, nearing $1 billion and tripling in the past year.
This significant increase in supply showcases a strong commitment from a publicly listed company with a $65 billion market cap to scale on Ethereum, raising questions about its impact on the altcoin’s future performance.
Source: Token Terminal
Institutional interest on the rise?
In addition to stablecoin supply growth, ETH’s Futures Open Interest has surged recently, indicating increasing institutional involvement.
CryptoQuant data shows a significant rise in ETH Futures Open Interest, suggesting a steady increase in exposure from institutional desks.
This uptick in activity highlights Ethereum’s role as a fundamental infrastructure for tokenized assets, stablecoins, and liquid staking products, potentially impacting the altcoin’s price movement.
Source: Coinglass
Positive on-chain signals
Ethereum’s on-chain metrics indicate sustained confidence, with increased blocks mined and validator participation coinciding with the growth in PYUSD liquidity.
These metrics reinforce ETH’s security and scalability, crucial factors for institutional investors looking to deploy significant capital.
Source: CryptoQuant
While ETH’s price has shown positive movement, it remains cautious after surpassing $4.3k, consolidating at current levels.
The potential for Ethereum to break above the $5,000 resistance zone hinges on the increasing PYUSD presence and rising Open Interest attracting more spot demand.