TechFlow news — JPMorgan analyst Nikolaos Panigirtzoglou said PayPal's stablecoin could increase Ethereum's total value locked (TVL), thereby benefiting Ethereum. He stated, "This could boost Ethereum activity and strengthen Ethereum's network utility as a stablecoin/DeFi platform. In other words, it may encourage more companies in the future to choose the Ethereum blockchain (or its Layer 2 platforms) for their stablecoins or decentralized projects."
Panigirtzoglou added that Ethereum could further benefit from PYUSD, as the stablecoin might fill the $20 billion gap left by the shrinking of BUSD, which was shut down earlier this year under pressure from U.S. regulators. If PYUSD fills this void, DeFi TVL could shift from Binance Smart Chain to the Ethereum blockchain (or its Layer 2 platforms).
