Key Takeaways:
- PayPal’s stablecoin has surpassed a $1 billion market cap, driven by its recent expansion onto the Solana network.
- Since launching on Solana, PYUSD’s supply has surged by 171%
PayPal‘s PYUSD stablecoin has reached a major milestone, surpassing a $1 billion market cap just one year after its launch.
Initially, PYUSD’s entry into the stablecoin market generated significant buzz, with many expecting it to compete directly with established giants like USDC and USDT. However, its early days on the Ethereum network were marked by slow adoption and limited growth.
The excitement that once surrounded its launch began to fade as the stablecoin struggled to gain traction among users and institutions alike.
Everything changed in May 2024, when PayPal made the strategic decision to expand PYUSD onto the Solana network. This move proved to be a game-changer. Within just three months, the stablecoin’s supply on Solana skyrocketed to $650 million, quickly surpassing its supply on Ethereum.
According to DefiLlama, PYUSD’s supply on Solana grew by an impressive 171% over the past month alone, bringing it closer in scale to Tether’s USDT on the network.
(Source: DefiLama)
This rapid growth was fueled by the high yields offered on the Solana network, making PYUSD an attractive option for both retail and institutional investors. Solana’s popularity as a fast, low-cost blockchain has provided PYUSD with the ideal environment to flourish.
To further drive adoption, PayPal has partnered with Anchorage Digital, an institutional digital asset custodian. Through this partnership, institutional investors can earn competitive rewards on PYUSD balances held in Anchorage’s newly launched self-custody wallet, Porto.
While PYUSD initially struggled to compete with more established stablecoins like USDC and USDT, its recent success on the Solana network suggests that it is beginning to carve out its own niche in the market.
The stablecoin’s market cap has surged by over 270% since its expansion to Solana, and it now ranks as the third most popular stablecoin in the Solana ecosystem.
As Solana continues to grow, so too does PYUSD’s potential for further adoption and success. With its impressive growth trajectory and strategic partnerships, PayPal’s PYUSD is poised to become a significant player in the world of decentralized finance.
