PayPal’s stablecoin PYUSD has surpassed Tron’s USDD in market capitalization, becoming the sixth-largest stablecoin in the cryptocurrency ecosystem.
According to CoinGecko data, PYUSD’s market valuation rose $140.9 million in ten days, from $651 million on August 6th to $791.9 million on August 16th.
Rapid growth in PYUSD market valuation
The growth trajectory of PYUSD over the past ten days marks a significant milestone for PayPal’s stablecoin. PYUSD’s market cap experienced a notable surge of $140.9 million. This increase overtook Tron’s USDD, positioning PYUSD as the sixth-largest stablecoin. The steady rise in valuation underscores the growing acceptance and demand for PayPal USD in the broader crypto market.
Its backing by Paxos Trust Company further solidifies PYUSD’s ascent. This fully licensed trust company is regulated by the New York Department of Financial Services and is known for issuing stablecoins backed by various assets. Some of Paxos’ notable products include Lift Dollar (USDL), Pax Dollar (USDP), and Pax Gold (PAXG). The collaboration with Paxos reinforces PYUSD’s credibility and market presence.
Solana surpasses Ethereum in PYUSD supply
In a notable shift, PYUSD’s supply on Solana has outpaced Ethereum’s supply. According to Solscan, a Solana-based blockchain explorer, 56.7% of PayPal’s stablecoin supply has been minted on Solana, with the remainder existing on Ethereum. PYUSD’s supply on Solana currently stands at $449 million, indicating a strong preference for the high-performance network.
Initially, Ethereum dominated the PYUSD supply until Solana’s integration on May 29th. The introduction of PYUSD on Solana marked a pivotal moment, expanding its reach to more Web3 users globally. This expansion gained momentum on June 26th, with Solana overtaking Ethereum’s supply on August 12th. Additionally, the crypto exchange Bybit announced its support for Solana-based projects on August 15th, allowing customers to deposit and withdraw PYUSD through the Solana network.
PYUSD supply on Ethereum and Solana. Source: Defillama
Despite this growth, PayPal has encountered regulatory challenges. The company’s 10-Q report published on November 1, 2023, revealed that the U.S. Securities and Exchange Commission (SEC) issued an investigative subpoena related to the stablecoin. This development indicates ongoing scrutiny from U.S. financial regulators.
PYUSD has led stablecoin growth in the last 30 days
Amid regulatory challenges, PYUSD has continued to experience significant growth. Over the past 30 days, PayPal USD has led the stablecoin market in terms of expansion. Since July 16th, PYUSD’s market valuation has surged by 35%. To reach a $1 billion market cap, PayPal USD would need an additional $209 million.
Launched on August 7th, 2023, PYUSD is a dollar-denominated stablecoin fully backed and regulated. According to PayPal’s official announcement, the stablecoin is supported by US dollar deposits, secured short-term U.S. Treasury securities, and cash equivalents. This backing ensures the stability and reliability of PYUSD in the volatile crypto market.
According to CoinGecko, the total market capitalization of dollar-denominated stablecoins currently stands at $161.6 billion, with a trading volume of $38.5 billion. Tether’s USDT continues to dominate the stablecoin ecosystem, holding a 17.88% market share as of August 17th. Circle’s USDC follows in second place, with a market share of 5.29%. PYUSD’s rapid growth reflects its increasing role and influence in the competitive stablecoin market.