JPMorgan analyst Nikolaos Panigirtzoglou said that the PayPal stablecoin may benefit Ethereum ETH 3.20% by increasing its total value locked (TVL).
He said: “This may boost Ethereum activity and enhance the network utility of Ethereum as a stablecoin/DeFi platform. In other words, in the future, more companies will be encouraged to choose Ethereum for their stablecoins or decentralized projects. Ethereum blockchain (or its second-layer platform).”
Ethereum could further benefit from PYUSD, Panigirtzoglou said, as the stablecoin could fill the void left by the $20 billion loss of BUSD, which was forced to shut down by U.S. regulators earlier this year.
If PYUSD fills this gap, DeFi TVL will move from Binance Smart Chain to the Ethereum blockchain (or its layer 2 platform).
