As Bitcoin's dominance declines and the altcoin season index shows positive signals, the crypto market is surging with new vitality. Recently, two major news items have provided strong catalysts for the altcoin market, particularly for XRP: the mainstream payment platform PayPal announced it will support cryptocurrencies including XRP for international payments, saving up to 90% in fees, while the data center Hyperscale Data has begun executing its $10 million XRP token purchase plan. These events not only indicate a significant expansion of XRP's application in the payment sector but may also serve as an early signal for a new altcoin season.
On July 28, 2023, the mainstream payment platform PayPal (PYPL) made headlines in the cryptocurrency news by announcing that it would allow account holders to use cryptocurrencies, including XRP, for international payments, saving up to 90% in fees.
Broad support: PayPal will support over 100 cryptocurrencies and eligible wallets, including BTC, ETH, USDT, XRP, BNB, Solana, USDC, and will connect with wallets such as Coinbase, OKX, Binance, Kraken, Phantom, MetaMask, and Exodus, with plans to support more wallets in the future.
Application scenarios: The Pay with Crypto service supported by PayPal will be launched for U.S. merchants in the coming weeks. This service covers 90% of the $3 trillion cryptocurrency market cap and aims to help businesses of all sizes reduce the cost of accepting international payments and increase profit margins through innovative technology, allowing for almost instant revenue.
Efficiency improvement: PayPal President and CEO Alex Chriss stated that through PayPal's open platform, merchants can accept cryptocurrency payments, improve profit margins, pay lower transaction fees, and receive revenue almost instantly, with funds stored in the form of PYUSD on PayPal, yielding 4%.
PayPal's move is undoubtedly an important milestone for XRP and the entire cryptocurrency sector towards mainstream adoption, significantly enhancing the practicality of cryptocurrencies in everyday payments and cross-border remittances.
At the same time that PayPal announced support for XRP payments, the data center Hyperscale Data also announced that it has begun purchasing XRP as part of its previously announced plan to buy up to $10 million in tokens.
Strategic accumulation: Hyperscale Data stated in its July 28 announcement that it will release weekly updates on its acquisitions and display the cumulative holdings of XRP on its balance sheet as a transparency measure for its long-term accumulation strategy.
Stock price increase: Following the announcement, Hyperscale's GPU stock price rose by 12%, from $0.73 to $0.82.
"Railroad" for cross-border value transfer: Executive Chairman Milton "Todd" Ault III stated that the company is positioning XRP as a scalable and efficient track for cross-border value transfer and emerging financial infrastructure. He emphasized, "We view XRP as a foundational asset in the evolving global financial ecosystem. Our goal is to build a balance sheet that reflects not only the future of computing infrastructure but also the future of global finance as a whole."
Future outlook: The company added that its board is considering expanding the $10 million plan, depending on market conditions and available financing, and is evaluating a 36-month lock-up period for its accumulated XRP, linked to internal milestones.
Hyperscale Data's actions are another significant signal of institutional investors incorporating XRP into their balance sheets, indicating that XRP may see new breakthroughs in institutional adoption.
The shift in attitude of the U.S. government and the U.S. Securities and Exchange Commission (SEC) towards cryptocurrencies is crucial for digital assets to become mainstream and for sustainable price increases.
Potential policy benefits: On July 30 (Wednesday), the U.S. President's Digital Asset Market Working Group will release a highly anticipated report that may recommend cryptocurrencies like XRP as strategic reserve assets for the U.S. government. If the U.S. government purchases XRP to build reserves, it could shift the supply-demand balance entirely in favor of XRP, potentially triggering a price breakout.
SEC appeal ruling: On July 31 (Thursday), the SEC may vote to withdraw its appeal regarding the ruling on XRP's programmatic sales in the Ripple case. Withdrawing the appeal would conclude the case and pave the way for the XRP spot ETF market, which would be another potential price catalyst.
The U.S. National Cryptocurrency Association commented on PayPal's statement, stating that cryptocurrencies are becoming part of how people transfer and manage funds, making such initiatives possible—and through education, more and more Americans are able to understand and confidently use cryptocurrencies.
As XRP gains mainstream adoption and institutional support, the entire altcoin market is also showing positive signals.
Early signs of altcoin season: A recent report from wealth management firm Swissblock indicates that the crypto market is entering the early stages of altcoin season. Although Bitcoin's dominance remains high, experts believe market conditions will shift rapidly.
Old-school altcoins collectively surge: CMC market data shows that among the top 20 cryptocurrencies by market cap, some "veteran" Layer 1 altcoins have performed outstandingly, with 7-day gains generally reaching double digits.
Macro catalysts: The launch of spot ETFs, advancements in Layer 2 (L2) solutions, the integration of artificial intelligence (AI) with blockchain, the development of real-world asset (RWA) tokenization, and the improvement of blockchain gaming infrastructure are all bringing new value narratives and application prospects for altcoins.
Arthur Hayes bullish: Arthur Hayes, co-founder of Maelstrom Fund and former CEO of Bitmex, stated that he no longer holds a cautious view, noting that Bitcoin's breakthrough of its historical high accompanied by strong trading volume is a turning point, emphasizing, "Get ready for a monster altcoin season."
PayPal's support for XRP payment transactions, along with Hyperscale Data executing its $10 million XRP token purchase plan, has brought strong positive news for XRP. These events not only indicate a significant expansion of XRP's application in the payment sector but may also serve as an early signal for a new altcoin season. With the shift in regulatory landscape and the continued influx of institutional funds, the altcoin market is expected to enter a new growth cycle. Investors should closely monitor the upcoming U.S. policy report and the SEC's appeal ruling, as these will be key factors influencing the future trajectory of XRP and the entire altcoin market.
Related: PayPal launches cryptocurrency checkout tool, supporting over 100 tokens
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