Key Insights
- PayPal stock has sold off in the past few months.
- Advent International and Stripe ended their acquisition bid.
- PYUSD has lost momentum, with its supply and transaction volume falling.
PayPal stock remains under pressure after Stripe and Advent International abandoned their takeover pursuit, removing a catalyst that had supported the shares during the summer.
PYPL closed Sept. 3 at $56.82, up 3.93%, recovering part of the selloff that followed the failed deal. The stock nevertheless remains substantially below its 2025 highs and its 2021 all-time peak.
The company also faces slower account growth and heavy competition across digital payments. However, current stablecoin data do not support the stronger claim that PYUSD demand is continuing to deteriorate across every metric.
PYUSD Supply Remains Below 2026 Peak
PayPal is facing numerous challenges, including in its stablecoin business. Data shows that PayPal USD (PYUSD), its stablecoin, is no longer growing, even as other big ones gain momentum.
According to DeFi Llama, the stablecoin has a market capitalization of $2.89 billion, down sharply from the year-to-date high of over $4.2 billion. In contrast, Ripple USD (RLUSD) has gained over $2.39 billion in assets and its growth is gaining momentum. It started the year with $1.4 billion in assets.
The same growth is happening in other stablecoins, with the USDC market cap rising from last month’s low of $71 billion to the current $73.8 billion. Tether has a market capitalization of over $183 billion.
More PYUSD metrics have continued to deteriorate in the past few months. For example, the stablecoin transfer volume has dropped by 76% in the last 30 days to just $319 million, making it one of the worst performers in the stablecoin industry. PYUSD has just 5.5k daily active users.
RLUSD Gains Faster Than PYUSD
PYUSD is not the only part of PayPal’s business that is slowing. Its wallet is facing substantial competition from the likes of Google Pay, Apple Pay, and Amazon Pay, which have become highly popular among users.
The company’s business payment solution is also facing substantial pressure this year. In its recent earnings report, PayPal said that its revenue rose by just 5% in the second quarter.
While this growth was higher than expected, it was further evidence that the company’s business is a shadow of what it was a few years ago, when it was one of the fastest growing companies in the fintech industry.
The earnings report also showed that its active accounts remained unchanged at 439 million, while the monthly active users rose by just 1% to 228 million.
These numbers likely explain why many analysts tracking the company have lowered their expectations. Truist’s Matthew Coad lowered the target from $62 to $53, while Loop Capital’s Dominick Gabriele slashed it from $62 to $50. The average target among analysts is $56, down from $85 12 months ago.
PayPal stock is also struggling after Stripe and Advent ended their pursuit. Rumors of the deal were reported in January, and then confirmed a few months ago. The two companies decided to end the pursuit, potentially because of the price. Also, PayPal likely requested a higher price.
PayPal Stock Price Technical Analysis
The weekly chart shows that PYPL stock has come under pressure over the past few years as its growth trajectory has stalled. It was trading at $54.65, down sharply from its all-time high of $300. It has dropped below all moving averages and the Supertrend indicator.
The stock also remains below the descending trendline connecting the highest swings in April 2022, January, and November 2025.
Therefore, with no major catalyst on the horizon, the PYPL stock price is likely to continue falling in the near term. If this happens, it may drop and retest the $38 support level. A drop below that level will suggest more downside, potentially to $35.
This article is for informational purposes only and does not constitute financial advice. Equity and cryptocurrency markets can experience sharp price movements.
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