As an experienced financial analyst with a background in blockchain technology and digital currencies, I have closely monitored the rapid growth of PayPal’s stablecoin, PYUSD, on the Solana blockchain since its launch in late May. The surge in demand for this stablecoin has been nothing short of impressive, with its total circulating supply swiftly approaching that of its Ethereum counterpart.
1. Since its launch in May, PayPal’s stablecoin, PayPal USD (PYUSD), has seen significant expansion on the Solana blockchain. In fact, the token’s circulating supply is rapidly approaching that of PYUSD tokens on the Ethereum network.
According to DefiLlama’s data analysis, the total circulating supply of Solana-based PYUSD stablecoins has surged by approximately 230% over the past month, reaching almost $252 million since its launch on May 29. Conversely, the Ethereum-based PYUSD tokens, introduced in August 2023, currently boast a total circulating supply of around $329 million.
Approximately 56.6% of this stablecoin’s overall amount is stored on the Ethereum network, with the rest – about 43.4% – found on the Solana platform.
The connection of PYUSD to Solana’s decentralized exchanges has significantly contributed to its substantial expansion. This linkup has made the stablecoin more convenient for users, thereby enhancing its acceptance. Additionally, this growth coincides with the recent introduction of PYUSD on GCash, a Filipino mobile payment service, through the Solana platform.
PYUSD Launch on Solana
In May’s latter half, PayPal revealed that the debut of PYUSD would occur on the Solana blockchain. This strategic move was aimed at improving the speed and affordability of its stablecoin transactions. By integrating PYUSD with Solana, users will have the advantage of selecting among various blockchains for their transactions, thereby gaining more control over their financial exchanges.
As a crypto investor, I’ve noticed that the Solana blockchain is renowned for its ability to handle vast transaction volumes at incredibly fast speeds with remarkably low costs. This feature makes it an ideal choice for commerce applications. Since making the switch to Solana, the token’s supply has experienced significant growth, surging by more than 90%. Currently, the market capitalization of this token is estimated to be around $582 million, as of July 30th.
Currently, PYUSD has a trading volume of $16.7 million, up by more than 140% in the last 24 hours.
Growth Despite Skepticism
In line with other stable digital currencies, PYUSD strives to maintain a consistent value and is directly linked to the U.S. dollar at a rate of one unit for each dollar, enabling its conversion into U.S. currency whenever needed.
Regarding PYUSD, there was initially doubt cast upon it; however, since its debut, it has delivered exceptional results. A recent research report from Bank of America analysts Alkesh Shah and Andrew Moss predicted slow initial adoption for this stablecoin. Contrary to these expectations, PYUSD has bucked the trend, showing rapid growth in a short span of time.
It’s worth noting that PYUSD and other Solana-associated stablecoins currently hold a modest share within the extensive stablecoin market. For instance, Tether’s USDT and Circle’s USDC boast market caps of $114.4 billion and $33.7 billion respectively, dwarfing their Solana counterparts.
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2024-07-30 11:49