PayPal's newly released stablecoin is struggling to see the expected interest for PayPal USD (PYUSD). According to blockchain analytics firm Nansen, approximately 90% of PYUSD currently resides in the wallets of stablecoin issuer Paxos Trust. Wallets on crypto exchanges hold approximately 7% of the total supply. Among "smart money" investors, demand for PYUSD is quite low.
PayPal's entry into the stablecoin market in August led to great expectations in the crypto industry. Although the fintech giant has more than 350 million users worldwide, only a few have used PYUSD or held it in their own wallets in the stablecoin's first weeks. According to Nansen, this indicates that demand for PYUSD is low.
On the other hand, PayPal's stablecoin was launched less than three weeks ago and launched without any prior announcement. PYUSD is pegged to the US dollar and is owned by Paxos Trust Co. It is issued by and runs on the Ethereum network.
The market cap of rival stablecoin USDC is currently around $25 billion, according to CoinMarketCap data, while Tether (USDT) has a market cap of over $82 billion.
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