According to The Block: The supply of PayPal's U.S. dollar-pegged stablecoin, PYUSD, on the Solana network has surpassed its supply on Ethereum, marking a significant shift in the distribution of the digital asset.

As of the latest data, the supply of PYUSD on Solana has reached 377 million tokens, outpacing the 356 million tokens currently circulating on Ethereum. This milestone comes just a few months after PYUSD expanded to the Solana blockchain in May 2024.

Growth of PYUSD on Solana

The rapid growth of PYUSD on Solana can be attributed to several factors, including its integration into Solana-based decentralized exchanges like Jupiter and Orca. These platforms have added PYUSD to their liquidity pools, likely contributing to its increased adoption on the network. Additionally, Solana’s reputation for fast and low-cost transactions may have attracted more users to prefer this network for stablecoin transactions.

PYUSD's Journey and Market Position

Originally launched on Ethereum in August 2023 through a partnership with Paxos, PYUSD saw significant early adoption, reaching a supply of 230 million tokens by the end of 2023. Since then, its total supply has more than tripled, surpassing 733 million tokens, equivalent to $733 million in value.

This expansion has positioned PayPal as the fourth-largest centralized stablecoin issuer, with a market cap of $733 million. It trails only behind Tether (USDT), Circle (USDC), and First Digital (FUSD), which hold market caps of $120 billion and $36 billion, respectively, according to The Block data dashboard.

The shift in PYUSD's supply dominance from Ethereum to Solana highlights the growing importance of network flexibility and the potential for newer blockchains to challenge established ones in the stablecoin market.