No cryptocurrency will have its price based on its utility, ever. Their price is only based on the money that people hold in them, and utility is part of the reason why people hold money in it but they don't just put it in, spend it and be done with it. People also don't only hold money in PayPal that they're spending that second.
I think you contradict yourself: "No cryptocurrency will have its price based on its utility, ever" > "Their price is based on the money that people hold in them" > "and utility is part of the reason why people hold money in it"....so yeah, a coin's utility, a currency's utility DOES have a direct impact on its value.
To think that majority of people owning a cryptocurrency do so to hope the price goes up is very dangerous, because there's no need for so many versions of cryptocurrency that provide the same utility. It's a set up for a huge bust in the value of the cryptocurrencies that don't have a utility that compares to bitcoin or ether.
Full disclosure on my knowledge - I don't know all of the utility these other coins offer.
PayPal isn't an accurate analogy. PayPal is not currency. You can't buy "PayPal coins". PayPal is on the same level as cash vs. debit card vs. credit card vs. wire transfer vs. Venmo...it's just a channel by which people submit currency.