Bitcoin [BTC] dominance questioned by mobile payments app

Square Cash, a payments app launched in late January by Square, has recently shown that it may be immune to Bitcoin [BTC]’s moves. Despite the drop in the price of Bitcoin in recent days, the userbase of the mobile payment app continues to grow.

This is according to the analysis by Nomura Instinet, an institutional, agency-only broker which executes trades for asset management firms, hedge funds, insurance companies and other similar clients. Dan Dolev, Executive Director and Analyst at Norma Instinet, said:

“Square is more than just a Bitcoin play. A lot of people were worried because it went up with Bitcoin, but instead it’s decoupling.”

Square Cash has successfully been able to “decouple” from Bitcoin. With around 2 million downloads per month, Square Cash is growing three times faster than Paypal’s Venmo. While Bitcoin’s prices fell 19% in May and 15% in June, the app’s download rates remained strong in those months.

Users of Square’s Cash payments app can trade Bitcoin, except for users in New York, Georgia, Wyoming and Hawaii. Square’s test of Bitcoin trading on its Cash app was followed by the official announcement of the service. While there is no limit to the amount that can be sold, customers are limited to $10,000 in Bitcoin purchases a week through the app.

Nomura Instinet compared Square Cash monthly downloads to that of Coinbase, a popular cryptocurrency exchange. In the month of June, according to Nomura’s research, Coinbase’s monthly download growth fell to 39%.

Dolan, in addressing the consistent download rate, said:

“When they [Square Cash] opened up trading in New York, you would expect a bump in downloads, but it didn’t happen- if you look at the weekly trend it actually slowed slightly.”

It is only about 200,000 downloads shy of Venmo’s 31.4 million. However, Bitcoin has traded around $6,300 as of Wednesday and has dived down to more than 55% this year. This has been in complete contrast to its climb of more than 1,300% in the year 2017.

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