As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market trends and innovations. The recent move by PayPal to leverage LayerZero for its USD stablecoin, PYUSD, is an exciting development that underscores the growing maturity and interoperability of the crypto space.
On Tuesday, PayPal disclosed that its stablecoin PYUSD ($1.00) is now leveraging LayerZero for seamless transactions across the Ethereum and Solana blockchain systems. This move enables easier transfers between these two significant network platforms, with a 24-hour volatility of only 0.1%, a market cap of $508.40 M, and a 24-hour volume of $58.48 M.
According to the information provided by the company, the integration is designed to remove liquidity inconsistencies and facilitate swift, secure, and economical transactions for both individual users and businesses. At present, the market cap of PYUSD on the Ethereum network remains stable around $350 million. However, there has been a significant decrease in the supply of this stablecoin on the Solana platform. In August, its supply was over $660 million, but it has now dropped to approximately $186 million.
In reference to recent advancements, Jose Fernandez da Ponte, PayPal’s senior vice president in charge of blockchain, cryptocurrency, and digital currencies, expressed his viewpoint: “We anticipate that PYUSD holders will appreciate the adaptability and ease provided by LayerZero.
To quickly move funds between the Ethereum and Solana blockchains, PayPal’s USD stablecoin will make use of LayerZero’s cross-chain fungible token, known as OFT (Omnichain Fungible Token). According to Bryan Pellegrino, CEO of LayerZero Labs, this is the approach that will be taken.
Through the OFT standard, stablecoins gain access to a higher degree of cross-platform compatibility. With the aid of LayerZero, PYUSD can now effortlessly transition between Ethereum and Solana networks. This allows token holders to transfer their assets freely across chains, giving them flexibility in deciding when and how to utilize their tokens.
Stablecoin Supply Expands after US Election
Over the last seven days, following the US election results and Donald Trump’s victory, the circulating supply of Tether’s USDT and Circle’s USDC has experienced a significant boost. As per TradingView, the number of USDT tokens in circulation climbed by an impressive $3.8 billion to reach a new high of $124 billion. Simultaneously, the supply of USDC grew by $1.6 billion, approaching $37 billion.
Huge amounts of funds are being pumped into the crypto market!
In the past 24 hours, ~1.25B $USDT flowed from the #TetherTreasury to exchanges!
— Lookonchain (@lookonchain) November 13, 2024
As a crypto investor, I find an increase in stablecoin supply to be a promising indicator for the market. These stablecoins, mostly tied to the US dollar, serve as crucial liquidity for cryptocurrency trading. They function like a reserve, often referred to as “dry powder,” which is ready for use and can be swiftly deployed for asset acquisitions on exchanges when opportunities arise.
In the global market, Tether’s USDT is the most traded stablecoin, while Circle’s USDc is well-liked within the U.S. and on platforms like Coinbase. As mentioned earlier, the growth of stablecoins has increased significantly due to heightened activity in the cryptocurrency market following Donald Trump’s election victory last week. Now, with PayPal introducing its own USD stablecoin, this move arrives perfectly as the market demand is escalating rapidly.
Based on DefiLlama’s statistics, the native USDC supply on the Solana network has grown by approximately 14% over the past week, amounting to nearly $2.9 billion. This growth can be attributed to a surge in transaction volumes and revenues within DeFi protocols operating on the Solana blockchain. In the last 24 hours, the 24-hour volatility stands at 7.7%, while the market capitalization hovers around $97.21 billion, with a total volume of $12.97 billion over the same period.
Meanwhile, USDT supply on the TON blockchain hit a new high of $1.1 billion, rising 10% as users continued to explore the growing ecosystem centered around the messaging app Telegram.
Read More
Sorry. No data so far.
2024-11-13 11:40