PayPal's Crypto Expansion & Why VanEck Thinks L2 Tokens Can Hit $1 Trillion

Collective Shift

Join Matt and Nick as they discuss the U.S. government’s massive Bitcoin holdings, PayPal’s continued push into the stablecoin market, VanEck’s outlook for Ethereum L2 tokens, and more.
Key Takeaways

1. The crypto market fell slightly last week. Notably, BTC fell by less than major altcoins such as ETH and SOL.
2. Speculation that the U.S. government will sell some BTC increased after onchain activity from connected addresses. The U.S. government holds roughly 200,000 BTC and has previously signalled its intent to sell over time.
3. PayPal dramatically improved the accessibility of its PYUSD stablecoin and Ripple announced its upcoming expansion into the lucrative stablecoin market.
4. VanEck published a report in which it predicted that the combined market cap of L2 tokens would hit $1T by 2030. Despite this, it remains “generally bearish” on the long-term value drivers of L2 tokens.
5. Expect talks about ‘fee switches’ to increase in the weeks ahead, particularly in relation to Uniswap (UNI) and Aave (AAVE).
6. The tokens for Ethena (ENA) and Wormhole (W) launched last week and initial airdrops were distributed.