Weekly Market Update - Friday, August 11, 2023 - PayPal Launches PYUSD Stablecoin, Coinbase Opens Base Layer-2, and Aptos Partners With Microsoft

Takeaways

• PayPal launches a USD-backed stablecoin: PayPal became the first major US financial institution to create its own US dollar-backed stablecoin with the launch of PayPal USD (PYUSD).
• July inflation cooler than expected: With inflation numbers from July coming in below expectations, the market is now projecting interest rates to remain steady through to the end of the year. Headline and core consumer price data for July both increased by 0.2%, reflecting a respective 3.2% and 4.7% yearly increase.
• Coinbase layer-2 network Base goes live to the general public: The Base mainnet had already been open to a select group of users for the past few weeks. As of Friday, data shows $175 million USD locked on the blockchain. The announcement followed Coinbase’s second quarter earnings beat.
• Aptos (APT) Surges on Microsoft partnership announcement: Aptos (APT), a layer-1 proof-of-stake blockchain, saw a ~15% surge in price on Wednesday after it announced a partnership with Microsoft to work on AI and web3 products and services.

Sign up for a Gemini account

The secure way to buy, sell, store and convert crypto. Millions use Gemini to diversify their portfolios.

Bitcoin and Ether Continue Range Bound

traded in the $29k to $30k USD range for the second week running. On Tuesday, rallied from the bottom of its recent range to test the psychological $30k USD resistance level, perhaps boosted by in the US.

has been fighting to move back above its 100-day moving average of $1,850 USD, having broken below that level last week. has continued to track alongside , with the pair hovering around the 0.063 level.

PayPal Launches US Dollar-Backed Stablecoin

The payments giant PayPal announced called PayPal USD (PYUSD). The move , which currently offers bitcoin (BTC), Bitcoin Cash (BCH), ether (ETH), and Litecoin (LTC) trading.

PayPal is to create its own US dollar-backed stablecoin as it moves to gain market share in the crypto payments sector. Jose Fernandez da Ponte, Senior Vice President and General Manager of blockchain, crypto, and digital currencies at PayPal, spoke of the , saying: “stablecoins are the killer application for blockchain right now,” adding that they are “something we cannot just sit out.”

July Inflation Cooler Than Expected

After sliding lower last week, stocks were this week as earnings season continues and investors waited for Thursday’s inflation update. On Thursday, inflation numbers came in , easing fears of further interest rate increases from the US Federal Reserve and pushing stocks mildly higher.

for July both increased by 0.2%, reflecting a respective 3.2% and 4.7% yearly increase. In response to the better than expected results, the market is that the Fed will at its next meeting in September.

Coinbase Launches General Access to Base Layer-2 Network

Coinbase to the general public on Wednesday, after a beta launch in February. The Base mainnet has been open to a select group of users for the past few weeks, with data showing on the blockchain as of Friday morning.

The announcement followed , as it reported $708 million USD in revenues and an adjusted earnings per share loss of $0.42 USD, compared analyst expectations of $628 USD in revenues and losses of $0.76 USD earning per share. Following its better-than-expected second quarter performance, Coinbase also announced on Monday that it will up to $150 million USD of $1 billion USD in bonds maturing in 2031.

Microsoft Partnership Boosts Aptos (APT) Token Price

, a layer-1 proof-of-stake blockchain, saw a ~15% surge in price on Wednesday after it announced a partnership with products and services.

The partnership will see to build its offerings, including a new chatbot called Aptos Assistant. The news comes just ahead of a on the network that will see over 2% of APT supply unlocked on August 12.

-From the Gemini Trading Desk