As a researcher with a background in blockchain and finance, I find the rapid growth of PYUSD on the Solana network quite intriguing. Having closely followed the development of stablecoins, I must admit that I was initially surprised by the disparity in supply between the Ethereum and Solana versions of this PayPal-backed stablecoin.
The U.S. dollar-backed digital currency, known as PYUSD, issued by PayPal Holdings Inc (NASDAQ: PYPL), has observed an imbalance in its circulation on the Solana blockchain versus Ethereum.
Data from Dune Analytics shows that PYUSD, which launched on the Solana ecosystem in May, has a supply of 377 million on the blockchain. On the other hand, Ethereum-based PYUSD is currently at 356 million, according to data from Etherscan. The figure for Solana corresponds to a 5.6% increase over that of Ethereum.
Solana Overtakes Ethereum in 30 Days in PayPal USD Volume
Interestingly, PYUSD debuted on Ethereum before Solana did. Specifically, it made its entrance onto the Ethereum blockchain in August 2023, through a collaboration with crypto custodian company Paxos. During the initial months after launch, the stablecoin showed remarkable performance. By the end of the year, its circulation had reached an impressive figure of 230 million units.
The disparity might be due to less usage and interaction with the stablecoin on the Ethereum blockchain, which is indicative of its current total supply growth (PYUSD). Notably, Coinspeaker previously reported a dramatic 90% increase in the market supply of this stablecoin shortly after its launch on Solana in July.
On July 9th, according to DeFiLlama’s data, the combined total supply of PYUSD across both the Solana and Ethereum blockchains reached approximately $520 million. At that point, a large portion or around 77% ($399 million) was located on Ethereum, while the remaining 23% ($118 million) was found on Solana.
The shift was abrupt, with the Solana-backed PYUSD stablecoin experiencing a surge of up to 230% in its total circulating supply over just 30 days. At present, the total supply has grown to approximately 733 million units, and given that it is pegged to the US dollar at a ratio of 1:1, the market capitalization amounts to a substantial $733 million.
In terms of size, PYUSD is the fourth-biggest issuer of centralized stablecoins, following Tether (USDT), Circle (USDC), and First Digital (FUSD).
Solana Provides the Push That PYUSD Needs
Following its debut on Solana, numerous Decentralized Exchanges (DEXes) built on Solana such as Jupiter and Orca have incorporated the stablecoin into their liquidity pools. This integration has made the stablecoin more accessible, thereby enhancing its adoption rate. This step is believed to have significantly contributed to the surge in the stablecoin’s expansion within the network.
As a researcher exploring the intersection of blockchain technology and financial services, I’m excited about the latest development – the launch of PYUSD on the Philippines’ mobile payment platform GCash, all powered by the Solana network. This integration not only broadens the reach of decentralized finance but also brings it a step closer to everyday Filipinos.
As someone who has been closely following the world of cryptocurrency and blockchain technology for several years now, I can confidently say that the surge in supply of top stablecoins like USDC and USDT within the Solana ecosystem is quite impressive. Having witnessed the rise and fall of various platforms, I’ve come to appreciate Solana’s unique ability to handle a high volume of transactions with remarkable speed and minimal costs. This capability is not only attractive for users but also sets Solana apart from other networks in the industry. It’s exciting to see this project gaining traction and demonstrating its potential as a reliable platform for stablecoin transactions.
It’s uncertain whether PYUSD is planning to extend its presence to another blockchain, but these types of integrations often give users the advantage of selecting various protocols. Over time, this empowers them with more authority over their transactions.
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2024-08-13 17:26