Key Points:
- PayPal’s stablecoin PYUSD has become the sixth largest stablecoin by market capitalization
- PYUSD’s supply has increased by $140.9 million in 10 days, reaching $791.9 million
- The stablecoin has surpassed Tron’s USDD in market cap
- 56.7% of PYUSD (449 million tokens) is now circulating on the Solana blockchain, more than on Ethereum
- PYUSD saw 34.9% growth over the last 30 days, the most among top 10 stablecoins
- The stablecoin needs to add $209 million more to reach the $1 billion milestone
PayPal’s PYUSD has ascended to become the sixth largest stablecoin by market capitalization. This rapid growth, particularly over the past ten days, has positioned PYUSD as a formidable player in the digital currency space, surpassing established competitors and showcasing the evolving landscape of blockchain-based financial instruments.
PYUSD, launched by global payments giant PayPal in August 2023, has experienced a remarkable surge in adoption and circulation.
Over just ten days, the stablecoin’s supply swelled by $140.9 million, pushing its total market capitalization to $791.9 million as of August 16, 2024. This growth represents a 34.9% increase over the past 30 days, outpacing all other top 10 stablecoins in terms of percentage growth.
Total circulating supply of PayPal’s PYUSD has increased by 49% since July and now stands at $734M, its highest level ever. This is the largest growth rate for any major stablecoin month-over-month including Tether (2.8%), USDC (1.2%), DAI (-3.2%), and FDUSD (1.5%).
This… pic.twitter.com/4qbWojxuBJ
— Akshay Poshatwar (@0xakki_qiro) August 17, 2024
One of the most intriguing aspects of PYUSD’s rise is its increasing presence on the Solana blockchain. Despite being initially launched on Ethereum, PYUSD has found a strong foothold in the Solana ecosystem.
Currently, 56.7% of all PYUSD tokens in circulation, amounting to 449 million tokens, are on the Solana network. This shift highlights the growing importance of Solana in the stablecoin landscape and potentially signals a broader trend in the preference for fast, low-cost blockchain networks for stablecoin transactions.
The rapid adoption of PYUSD on Solana has contributed to the blockchain’s rising prominence in the stablecoin ecosystem. Solana now ranks as the fifth largest blockchain for stablecoins, following Ethereum, TRON, BNB, and Arbitrum. This development is further reinforced by cryptocurrency exchange Bybit’s recent announcement of PYUSD integration on Solana, potentially driving more volume and liquidity to the network.
PYUSD’s growth has not gone unnoticed in the competitive stablecoin market. The token has now surpassed Tron’s USDD, claiming the sixth spot in the stablecoin rankings. This achievement is particularly noteworthy given PYUSD’s relatively recent entry into the market compared to more established players.
Looking ahead, PYUSD is on the cusp of a significant milestone. The stablecoin needs to add approximately $209 million to its market cap to reach the coveted $1 billion mark. While this represents a substantial increase, the token’s recent growth trajectory suggests this goal may be within reach in the near future.
However, challenges remain for PYUSD as it seeks to climb further up the stablecoin rankings. To overtake the next largest stablecoin, First Digital USD (FDUSD), PYUSD would need to more than triple its current market cap, adding an additional $1.54 billion in circulation.
For the Solana ecosystem, the prominence of PYUSD represents a significant win. As more stablecoins and decentralized finance (DeFi) projects choose Solana for its speed and low transaction costs, the blockchain’s position in the broader crypto landscape continues to strengthen.
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