Paypal PYUSD Become Sixth Largest Stablecoin

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As a seasoned crypto investor with over a decade of experience in this dynamic market, I must admit that the rapid growth of Paypal USD (PYUSD) has caught my attention. Having closely followed the evolution of stablecoins and their role in mainstream adoption, I find it fascinating to witness such meteoric rise within a single month.

Nearly two-thirds of August has elapsed, yet the crypto market remains stagnant, with occasional small gains. Bitcoin, the dominant player in the market, has seen a nearly 2% increase since yesterday, targeting the $60K level. Nevertheless, the standout performer today is Paypal’s USD-backed token (PYUSD), which has experienced significant growth recently and now ranks as the sixth largest stablecoin.

Paypal functions as a well-known digital platform that facilitates various international money transfers and offers numerous payment choices. Additionally, its accommodating attitude towards cryptocurrencies has earned it a strong preference among crypto enthusiasts. Notably, following the introduction of PYUSD, a widely-used stablecoin whose value is fixed to the US dollar, the company’s popularity amongst investors has grown significantly.

Paypal Stabelcoin Grew 97% In A Month

In August 2023, PYUSD debuted and quickly drew interest from many. It has consistently ranked among the top 10 stablecoins, processing approximately 500,000 transactions on its network. However, that’s not all – just recently, it set a new record by increasing its supply by $140.9 million within a ten-day span, earning it a position as the sixth-largest dollar-backed token in circulation.

Through these developments, PYUSD has managed to surpass Tron’s stablecoin USDD and several others such as USDB, PAXG, TUSD, and so on, in terms of market positions. This impressive feat was achieved within a single month, during which its market capitalization grew by over 97% according to Coingecko.

The total amount of PayPal’s PYUSD in circulation has surged by 49% since July, reaching a record high of $734 million. This growth rate is the highest among major stablecoins compared to the previous month, outpacing Tether (2.8%), USDC (1.2%), DAI (-3.2%), and FDUSD (1.5%).
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— Akshay Poshatwar (@0xakki_qiro) August 17, 2024

On August 6th, the market value of this token was approximately $651 million, as reported by Solscan. However, by August 17th, its value had increased significantly, reaching over $791.6 million.

Of greater significance, the rate at which this token is being created (minted) is significantly higher on the Solana blockchain compared to Ethereum. Currently, about 56.7% of the minting process takes place on Solana, and this number could potentially increase further, given that Bybit, a prominent cryptocurrency exchange, has revealed its intention to integrate this token with Solana.

Solana Stablecoins Dominating The Market

As a researcher, I’ve noticed an interesting shift in the cryptocurrency landscape, particularly with PYUSD and Solana. Although PYUSD initially debuted on the Ethereum network, it’s Solana that seems to be surging ahead, even though it was ten months behind in its growth phase. The turning point came when PayPal’s USD stablecoin went live on Solana in May. At that time, Solana’s market capitalization stood at $398.3 million. Remarkably, within just two and a half months, that figure has more than doubled.

With this addition, PYUSD has climbed up to become the third largest Solana-based stablecoin, surpassed only by USDT and USDC – the two most widely used dollar-backed tokens. This move signifies that Solana’s influence in the stablecoin sector is expanding significantly. Consequently, Solana’s stablecoin environment now ranks fifth in size, following Ethereum, TRON, BNB, and Arbitrum.

Final Thoughts

As an analyst, I’ve noticed a steady surge in excitement surrounding Paypal’s stablecoin, as it has managed to surpass USDD and claim the sixth spot among dollar-pegged tokens. Yet, there’s still a significant journey ahead before PYUSD reaches the $1 Billion milestone and doubles that figure to rival the next major player in the dollar-pegging crypto landscape, First Digital USD (FDUSD). It will also be intriguing to monitor Solana’s increasing influence within the stablecoin ecosystem.

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2024-08-17 11:22