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Currently, PYUSD has a trading volume of $16.7 million, up by more than 140% in the last 24 hours.
PayPal’s stablecoin PayPal USD (PYUSD) has experienced massive growth on the Solana blockchain since its May launch. The token’s total circulating supply is swiftly catching up with that of PYUSD tokens on the Ethereum blockchain.
Data by DefiLlama reveals that Solana-based PYUSD stablecoins have seen a 230% increase in their total circulating supply in the past 30 days. They reached a supply of nearly $252 million since their debut on May 29. In comparison, Ethereum-based PYUSD tokens, which launched in August 2023, have a total circulating supply of $329 million.
A breakdown of the stablecoin’s distribution shows that 56.6% of the total supply sits on Ethereum, while the remaining 43.4% is on Solana.
The integration of PYUSD into Solana-based decentralized exchanges has likely played an important role in this massive growth. As a result of this integration, the stablecoin became more accessible, leading to a better adoption. Moreover, the growth also aligns with the recent launch of PYUSD on Filipino mobile payments service GCash via the Solana network.
PYUSD Launch on Solana
Notably, later in May, PayPal announced that the launch of PYUSD is now on the Solana blockchain in late-May. The move aimed at enhancing the speed and cost-effectiveness of its stablecoin transactions. The addition of PYUSD to Solana offers users the flexibility of choosing between multiple blockchains, thereby providing greater control over their transactions.
The Solana blockchain is popular for its expertise in processing large numbers of transactions at very high speeds with minimal costs. This makes it particularly suitable for commerce use cases. Since expanding to the Solana blockchain, the supply of the token has surged by over 90%. The token’s current market cap stands at $582 million as of July 30.
Currently, PYUSD has a trading volume of $16.7 million, up by more than 140% in the last 24 hours.
Growth Despite Skepticism
PYUSD, like other stablecoins, aims to ensure price stability and is pegged 1:1 to the United States dollar, making it redeemable for USD.
Despite initial skepticism surrounding PYUSD, it has shown remarkable performance since its launch. Bank of America analysts Alkesh Shah and Andrew Moss suggested in a recent research report that the immediate adoption of this stablecoin would be slow. However, PYUSD has defied these predictions, demonstrating significant growth in a relatively short period.
Interestingly, PYUSD and other Solana-based stablecoins still represent a relatively small portion of the vast stablecoin market. Tether’s USDT and Circle’s USDC have a market cap of $114.4 billion and $33.7 billion, respectively.
