Square and Twitter owner Jack Dorsey often compares his companies to one another regarding market value. Twitter usually leads, but it has now lost to the mobile and merchant payment app.
Mobile payment applications’ fame has often been tied to the popularity of digital currencies. People took notice after digital assets spiked late last year. Paid app downloads have also started growing, and Square was no exception. Mobile payment applications have maintained their popularity even after cryptocurrencies experienced a price drop in January.
Bitcoin continued to struggle throughout the year, continuously losing its value until it dipped to about $6,400. However, Square’s Cash App for Bitcoin has constantly accelerated. Although its growth did start because of BTC, it managed to continue growing even without the cryptocurrency.
Square received permission in June to enable New York traders on its Cash App. After the approval, its market cap soared even further and has managed to surpass Twitter. Square’s market cap has reportedly reached $30 billion while Twitter presently has a $25.8 billion market cap.
For several investors, Square’s rise indicates the untapped potential crypto trading can offer to any business that chooses to deal with them. The Cash App has been growing exponentially since its launch in 2015. However, the addition of cryptocurrencies has fueled its consistent growth and popularity.
The application enables users to make orders, manage funds, and make informed business decisions by utilizing analytics and reporting. While many think it might be the new PayPal, Square’s Cash App still has a long way to go before it achieve that size. Nevertheless, several users believe crypto can also help the app reach that goal.
Square had great success with its business decisions, and it owes it largely to Bitcoin. Digital currencies have been a revolutionary way to entice investors and users. While others have initially questioned if Square stock is overheated, the fact that it has managed to grow despite cryptocurrency losing value seems to have eradicated such doubts.