PYUSD sees 271% growth on Solana, which accounts for 88% of its adoption and 64% of its market share, surpassing Ethereum.
Solana’s low transaction costs and instant settlements make it a key driver of PYUSD’s growing adoption in decentralized finance.
Solana’s token extensions provide compliance and scalability for PayPal's PYUSD, fueling its expansion in broader commercial sectors.
PayPal's PYUSD stablecoin recently crossed a $1 billion market capitalization. This growth is driven by its expansion to Solana, where PYUSD has seen a remarkable 271% increase since its deployment on the blockchain.
https://twitter.com/solana/status/1828175011590664412
Notably, 88% of that growth is attributed to Solana, highlighting the platform's critical role in the adoption of PYUSD. With Solana now accounting for 64% of PYUSD's market share, compared to Ethereum's 36%, the question arises, what led PayPal to choose Solana, and what factors are driving PYUSD adoption?
Solana’s Performance and Token Extensions Draw PayPal
Initially launched on Ethereum in August 2023, PYUSD is issued by Paxos, a company regulated by the New York Department of Financial Services (NYDFS). While the stablecoin achieved notable awareness through its Ethereum deployment, PayPal identified the need for a blockchain that could provide faster settlement, lower transaction costs, and greater utility for both consumers and merchants. This led to the decision to expand PYUSD to Solana.
One of the main drivers behind PayPal’s selection of Solana was its high-performance infrastructure. Solana offers near-instant settlement times and sub-cent transaction fees, both of which are essential for scaling stablecoin usage. Beyond these technical advantages, Solana’s unique token extensions played a role in PayPal’s decision.
These extensions, such as confidential transfers, transfer hooks, and memo fields, allow token issuers to meet compliance needs without building additional infrastructure. These features are crucial for expanding PYUSD’s utility to broader commercial segments.
DeFi Adoption and Low-Cost Transfers Fuel Growth
Another notable factor behind PYUSD’s growth on Solana is its adoption within decentralized finance (DeFi) protocols. Token incentives have encouraged the use of PYUSD in DeFi, with 81% of PYUSD on Solana utilized in such protocols, according to Syndica.io.
Additionally, the low cost of transactions on Solana has further propelled its use. Peer-to-peer transfers of PYUSD incur a median transaction fee of just a tenth of a cent, according to data from Artemis.xyz.
As PYUSD continues to find utility on Solana, the stablecoin is expected to see further growth in both market share and adoption. The low fees, combined with the flexibility provided by Solana’s token extensions, are contributing to its expanding role within decentralized finance and broader payment networks.
The post PayPal’s PYUSD Hits $1B as Solana Dominates with 64% Market Share and 271% Growth appeared first on Crypto News Land.
