PayPal stock has moved into a bull market, rising by over 26% from its lowest point this month.&nbsp; 
<h2 class="wp-block-heading" id="paypal-usd-stablecoin-s-market-cap">PayPal USD stablecoin’s market cap</h2> 
PayPal USD (<a href="https://crypto.news/price/pyusd/">PYUSD</a>), the <a href="https://crypto.news/paypal-ventures-into-stablecoins-with-launch-of-pyusd/">company’s stablecoin</a> launched in August 2023, has been performing well. 
Data shows that its market cap has jumped sharply in the past few weeks, crossing the psychological level of $907 million on Aug. 21. This marks significant growth for a stablecoin whose market cap started the year at $264 million.&nbsp; 
Stablecoin issuers like PayPal make money in two main ways: interest rates and transaction costs. With U.S. interest rates between 5.25% and 5.5%, PayPal could earn over $50 million annually in interest.&nbsp; 
Tether (<a href="https://crypto.news/price/tether/" target="_blank" rel="noreferrer noopener">USDT</a>), the biggest stablecoin, with over $117 billion in assets, made a quarterly profit of over <a href="https://www.bloomberg.com/news/articles/2024-05-01/tether-says-profit-rose-to-a-record-during-the-first-quarter" target="_blank" rel="">$4.5 billion</a> in the first quarter of 2024. Most of this revenue came from interest, while the rest was from mark-to-market gains on assets like Bitcoin and gold. 
PayPal’s challenge is that the stablecoin industry has become highly competitive. In addition to <a href="https://crypto.news/tag/tether/" target="_blank" rel="noreferrer noopener">Tether</a>, Circle’s USD Coin (<a href="https://crypto.news/price/usd-coin/" target="_blank" rel="noreferrer noopener">USDC</a>) has become popular, having over $34 billion in assets. Ripple is currently <a href="https://crypto.news/ripple-begins-testing-rlusd-stablecoin-on-ethereum-and-xrp/">developing its stablecoin</a> offering, RLUSD, which will be backed 1:1 with the US dollar. 
Additionally, Ethena launched USDe, which has accumulated over $3 billion in assets, while Ondo OUSD has $340 million in assets. These stablecoins are becoming popular because they reward their holders with monthly returns. USDY has a 5.35% AP derived from U.S. Treasuries investments. 
 You might also like: <a href="https://crypto.news/bybit-now-supports-paypals-pyusd-stablecoin-on-solana/"> Bybit now supports PayPal’s PYUSD stablecoin on Solana </a> 
<h2 class="wp-block-heading" id="paypal-stock-has-soared">PayPal stock has soared</h2> 
PayPal’s stock is also benefitting, having risen to its highest level in over 52 weeks, pushing its valuation to over $71 billion. Still, the stock remains much lower than its pandemic-era high of $309 when its valuation peaked at over $300 billion.&nbsp; 
The stock jump happened after analysts at <a href="https://www.nasdaq.com/articles/daiwa-capital-upgrades-paypal-holdings-pypl" target="_blank" rel="">Daiwa upgraded</a> the stock from neutral to outperform, noting that the company will prevail despite substantial competition from companies like Apple, Google, and Affirm.&nbsp; 
Analysts at Argus Research also <a href="https://finance.yahoo.com/quote/PYPL/analysis/" target="_blank" rel="">upgraded</a> the stock from a buy to a hold, while those at Mizuho, JPMorgan, and Barclays maintained their outperform rating. 
The recovery also happened after PayPal published mixed second-quarter financial results. Revenue rose by 85 to $7.8 billion while active accounts fell again to 429 million. PayPal also continued returning cash to investors through stock buybacks.&nbsp; 
While it is still early, the stock may continue rising now that it is forming a golden cross-chart pattern. This popular bullish pattern happens when the 50-day and 200-day Exponential Moving Averages cross. 
Notably, the stock has crossed the crucial resistance level at $70.69, the previous year-to-date high. The recovery also happens in a high-volume environment while the accumulation/distribution indicator has pointed upward. 
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 <img loading="lazy" decoding="async" width="3574" height="1982" src="https://crypto.news/app/uploads/2024/08/Paypal-stock.png" alt="PayPal stock on the rise as PYUSD market cap nears $1b - 22"> 
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 PayPal stock price | Chart by <a href="https://www.tradingview.com/symbols/NASDAQ-PYPL/" target="_blank" rel="">TradingView</a>
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 You might also like: <a href="https://crypto.news/tether-mints-1b-in-usdt-on-tron-blockchain/"> Tether mints $1b in USDT on TRON blockchain </a>

PayPal stock on the rise as PYUSD market cap nears $1b

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