The launch this week of PayPal's stablecoin could benefit Ethereum by increasing its total value locked, according to JPMorgan.

"This could boost Ethereum activity and enhance Ethereum's network utility as a stablecoin/DeFi platform," JPMorgan analyst Nikolaos Panigirtzoglou told The Block. "In other words, more firms would be encouraged in the future to choose the Ethereum blockchain (or its layer 2 platforms) for their stablecoin or decentralized projects."

Ethereum could further benefit from PYUSD because the stablecoin could fill the void left by the $20 billion shrinkage of Binance's BUSD stablecoin, which was forced to shut down by U.S. regulators earlier this year, Panigirtzoglou said. If PYUSD fills that void, "DeFi TVL would shift from Binance Smart Chain to the Ethereum …