PANews reported on October 17 that according to The Block, PayPal's stablecoin PYUSD has been losing market share since it reached a high of more than $1 billion in market value at the end of August (the fourth largest stablecoin at the time). The token currently has a market value of $618 million, down 40% in the past month and a half. The Solana-based PYUSD market value is currently about $267 million, down from a high of more than $600 million in August. At the same time, more than $350 million of PYUSD tokens are circulating on Ethereum.

The stablecoin’s growth has been largely fueled by PayPal’s partnership with Solana lending market Kamino Finance, which has agreed to pay PYUSD holders a high yield subsidized by the payments giant. In recent weeks, the yield on PYUSD deposits on lending protocol Kamino has fallen from about 17% to below 7%. The double-digit annualized rewards offered to PYUSD holders by Solana-based protocols Drift and Marginfi have also taken a hit. However, the trend may be reversing. On Tuesday, Kamino added PYUSD to its “Altcoin Markets,” enabling users to borrow against their positions in meme coins such as WIF, POPCAT, and BONK. The arrangement will pay depositors an additional total of $10,000 in PYUSD rewards each week. By comparison, on Ethereum-based decentralized exchange Aave, PYUSD lenders currently earn a yield of about 4.3%.

Over a similar six-week period, the market capitalizations of the two largest stablecoins, USDT and USDC, have remained largely stable. Since August 31, Tether’s stablecoin has gained $1 billion in market capitalization, while Circle’s token has gained $2 billion and then lost $2 billion in market capitalization.