As an analyst with a background in blockchain and cryptocurrency, I find the recent growth of the PayPal-issued stablecoin, PYUSD, on the Solana blockchain to be quite intriguing. Based on the data provided, it’s clear that there has been a significant increase in the adoption of this stablecoin on the Solana network, with its supply surging by 58% in just the past week.
Since May, when PayPal’s PYUSD stablecoin made its expansion to the Solana blockchain, its market supply has experienced a significant increase of approximately 90%. As of July 8, the market capitalization of PYUSD surpassed $500 million. According to DeFiLlama’s data, the current total supply of PYUSD on both the Solana and Ethereum blockchains amounts to over $520 million.
The distribution of this stablecoin’s total supply, amounting to $517 million, reveals that approximately 77%, or $399 million, resides on the Ethereum network. Conversely, the remaining 23%, equivalent to $118 million, is situated on the Solana blockchain.
An in-depth examination of the data reveals a notable increase in the usage of the PYUSD stablecoin on the Solana blockchain. Over the past week, there has been a remarkable jump of approximately 58% in the supply of this stablecoin on Solana. Conversely, there has been a slight decrease of around 6% in the PYUSD supply on Ethereum within the same timeframe.
The surge in availability and rising usage have significantly enhanced the weekly trading volume for PYUSD stablecoin. Based on statistics from Visa and Allium Labs, the weekly transaction volumes for this coin surpassed $500 million towards the end of the previous month. This represents a substantial increase compared to the $150 million weekly trading volumes observed earlier.
As a passionate Solana investor, I’ve been closely monitoring the explosive growth of the PYUSD stablecoin. This unsung hero of the Solana ecosystem has been quietly gaining traction and strengthening our blockchain network as a serious contender in the financial world. According to Paul Fidika, its developer, it’s the “sleeper hit on Solana,” providing a legitimate financial alternative that bolsters our platform’s credibility.
“When it comes to handling US dollar transactions between bank accounts and cryptocurrency addresses, both Coinbase and Circle become obsolete in the face of [PYUSD]. Their primary role is reduced to serving as intermediaries, charging fees for facilitating these transfers.”
DeFi Protocols on Solana Embrace PYUSD Stablecoin
As a researcher studying the blockchain ecosystem, I can’t help but emphasize the significance of PYUSD‘s integration with popular Solana Decentralized Finance (DeFi) protocols. This integration is crucial in building and strengthening PYUSD’s presence within the Solana network. Market observers have highlighted this point repeatedly, making it an essential aspect to keep in mind while analyzing the developments within this space.
As a researcher examining decentralized finance (DeFi) systems, I can attest that Solana is home to a highly resilient DeFi ecosystem. According to DeFillama, an essential source for tracking DeFi metrics, Solana ranks among the top five platforms in terms of total assets locked.
Further, PYUSD is extensively traded on top Solana DEXs like Jupiter and Orca. Notably, these exchanges are pioneering new offerings to boost adoption of this stablecoin. Moreover, PYUSD has been incorporated into Kamino Finance, the largest lending and liquidity platform on Solana, thereby increasing its functionality within the ecosystem.
Expert: Twenty-One Shares analyst Tom Wan pointed out that the Decentralized Finance (DeFi) platform provides a yearly return of 23% based on the Annual Percentage Yield (APY) for PYUSD. Consequently, this high yield has drawn in an increased number of users looking for profitable opportunities.
“Kamino Finance significantly contributed to the achievement, with approximately 38% of the total supply being loaned out there, earning a high annual percentage yield of 23%. This marks an important milestone in the expansion of tokens within Decentralized Finance (DeFi),” Wan explained.
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2024-07-09 13:55