PayPal cryptocurrency issuance skyrocketed

PYUSD started May reaching an all-time high in market capitalization.

PYUSD is PayPal's stablecoin cryptocurrency. - Composition by CriptoNoticias. Who is Danny? artjazz/stock.adobe.com; PayPal USD

It is a token developed on Ethereum that maintains parity with the US dollar.

PayPal has made partnerships that drive the use of PYUSD.

The market capitalization of PYUSD, the stablecoin issued by the PayPal payment platform, rose to a new record: 327 million dollars (USD).

The following graph, provided by the CoinMarketCap platform, shows how this number has evolved since the launch of PYUSD.

In this way, PYUSD strengthens its position among the stablecoins with the highest capitalization just nine months after its launch. Currently, it is in position 7, as the following table shows

To understand the meaning of this news, it is necessary to know that the market capitalization of a financial asset is the total sum of the value of each of its units.

In the case of a stablecoin, such as PYUSD, each unit is always worth 1 dollar. Therefore, whether the market capitalization grows or decreases implies that the issuing company (in this case, PayPal) creates or destroys coins. This makes it according to the commercial needs of the moment.

This milestone occurs amid various associations that seek to increase the use of the stablecoin, as well as cryptocurrency trading through PayPal. The most recent is that, since last week, the infrastructure firm MoonPay allows you to buy more than 110 crypto assets with said payment platform.