PYUSD Hits $500M Market Cap After Solana Expansion

PYUSD

PYUSD’s supply increased by 97%, rising from 270 million on June 26 to over 533 million, placing PayPal among the top ten stablecoin issuers.

PayPal’s U.S. dollar-pegged stablecoin, PYUSD, launched in August 2023 through a partnership with Paxos. Since then, its market supply has grown significantly, surpassing $500 million recently.

The stablecoin’s rapid growth took off after it expanded to the Solana network in May. Solana now holds about 134.5 million PYUSD tokens, making up 25.2% of the total supply.

At the end of 2023, PYUSD’s supply was 230 million tokens. Since then, the supply has significantly increased, exceeding 500 million tokens, according to data from DeFiLlama. PYUSD’s supply increased by 97% in the past month alone, from 270 million on June 26 to over 533 million now. This growth places PayPal among the top ten stablecoin issuers, with Tether USD leading the way with over $112 billion in supply.

Strategic Partnerships Boost PYUSD’s Adoption

The partnership with Solana offers many benefits, giving millions of users access to PYUSD with faster transactions and lower costs. This integration helps PayPal reach over 30 million merchants globally, providing them with a stablecoin transaction option.

This collaboration marks a milestone for USD-pegged stablecoins, as PYUSD extends beyond the Ethereum ecosystem. This makes PYUSD suitable for small and everyday purchases, helping it compete with Tether (USDT) and USD Coin (USDC).

Additionally, PayPal’s Xoom service allows U.S. users to fund international transfers with PYUSD. These transfers to over 160 countries are free of transaction fees when using PayPal USD, making it an attractive option for sending money abroad. Furthermore, PYUSD’s adoption of centralized exchanges like Crypto.com and its integration into decentralized finance protocols such as Curve and Frax have also contributed to its growth over the past year.

Paxos holds the largest share of PYUSD on Ethereum, with 112 million tokens, representing over 20% of the total supply. Following Paxos, Crypto.com holds 103 million, Defiance Capital holds 35 million, BitGo holds 14.8 million, and Curve holds 14 million, according to Nansen data. This widespread adoption and integration highlight PYUSD’s growing presence in the stablecoin market.