Payment App, Square Cash Continues to Grow Despite Bitcoin’s Dropping Trends Says Nomura Instinet
Nomura Instinet, a company that focuses on bettering one’s trading experiences and investments, has revealed to CNBC that the mobile payment service app, Square Cash, has been gradually growing despite Bitcoin’s [BTC] decreasing trends.
Nomura’s detailed analysis shows that Square Cash has been decoupling, which was contrary to what many believed. Previously, consumers were quick to notice that Square Cash was growing in the same direction as BTC and once BTC dropped, many predicted that the same will occur to Square Cash. Nomura proved that this is not the case and that Square Cash is growing separately.
In particular, Dan Dolev, Executive Director and Analyst at Nomura shared that, “Square is more than just a bitcoin play,’’ adding that, “A lot of people were worried because it went up with bitcoin but instead it’s decoupling.”
Ever since BTC’s price rose to USD $20,000, many cash apps were in demand. Square’s first testing to see if the payment app can support BTC was also announced during the same time. Now that BTC is sitting at a 1/3 of its all-time high, USD $6425, many feared the faith of such apps, however, Square Cash managed to push through and grow without the need of BTC.
Dolev also shared some analytics with CNBC that app downloads increased by about 150% for May and similarly in June. He also compared relatable services to Square Cash, for instance, Coinbase, which unlike Square Cash, has witnessed a negative impact ever since BTC started to fall. In particular, Nomura’s analysis noted that Coinbase downloads dropped by 39% in June alone.
Another example that Dolev gave was that of Square Cash’s effort in permitting New Yorkers to invest in crypto. According to him, one would have predicted that this new effort would have resulted in dropping trends, especially after the many doubts surrounding cryptos, however that was not the case. As per his quote, “you would expect a bump in downloads, but it didn’t happen – if you look at the weekly trend it actually slowed slightly”.
While Square Cash has seen gradual increases in growth, Dolev believes that the payment app has the potential to overtake PayPal’s Venmo, which currently sits at 200,000 more downloads that Cash’s.
As per CNBC, Square Cash’s success has resulted in about 154% growth within a year, with its stock rising by an astonishing 86%.