PayPal’s stablecoin PYUSD outperformed Tron’s stablecoin USDD by market cap to become the sixth largest stablecoin in the crypto ecosystem. PYUSD’s market valuation grew by $140.9 million in ten days from $651 million on August 6th to $791.9 million on August 16th.
The growth of the PayPal-issued stablecoin PYUSD occurred over the last ten days. Over that period, PYUSD’s market capitalization surged by $140.9 million, from $651 million on August 6th to $791.9 million on August 16th.
The recent market cap growth caused PYUSD to surpass Tron-issued stablecoin USDD, becoming the sixth largest stablecoin according to data from CoinGecko.
PayPal USD is issued by Paxos Trust Company, a fully licensed trust company regulated by the New York Department of Financial Services. Paxos is widely renowned for issuing stablecoins backed by different assets. Some of the company’s products include Lift Dollar (USDL), Pax Dollar (USDP), and Pax Gold (PAXG).
PYUSD supply on Solana exceeds Ethereum’s supply
According to Solscan, a Solana-based blockchain explorer, 56.7% of PayPal’s stablecoin has been minted on Solana. The remaining supply exists on the Ethereum network.
The supply of PYUSD on Solana currently sits at $449 million on the high-performance network. According to data from Defillama, Ethereum dominated the PYUSD supply before the stablecoin launched on Solana on May 29th.
The introduction of PayPal USD on Solana expanded its reach to more Web3 users globally. PYUSD’s supply on Solana began increasing sharply on June 26th and overtook Ethereum’s supply on August 12th.
PYUSD supply on Ethereum and Solana. Source: Defillama
On August 15th, crypto exchange Bybit announced it would commence supporting Solana-based crypto projects. The exchange now allows its customers to deposit and withdraw PYUSD through the Solana network.
However, the company faced regulatory headwinds a few months after launching the stablecoin. According to PayPal’s 10-Q report published on November 1, 2023, the United States financial watchdog, the U.S. Securities and Exchange Commission (SEC), issued the company an investigative subpoena regarding the pegged stablecoin.
PayPal USD leads stablecoin growth in the last 30 days
Despite the regulatory pressures, Paypal USD has continued to grow. PYUSD led the stablecoin market ecosystem in terms of expansion, recording the most significant growth in the past 30 days. PayPal USD’s market valuation has surged 35% since July 16th. At the current valuation, PayPal needs to raise an additional $209 million to achieve the $1 billion market cap.
PayPal launched the dollar-denominated stablecoin on August 7th, 2023, as a fully backed and regulated stablecoin. According to PayPal’s official announcement, the stablecoin is 100% supported by US dollar deposits, secured short-term U.S. Treasury securities, and cash equivalents.
The total market capitalization of dollar-denominated stablecoins currently sits at $161,603,458,295 with a trading volume of $38,573,799,816, according to CoinGecko. Tether’s USDT currently dominates the ecosystem, commanding a 17.88% market share as of August 17th. Circle’s USDC occupies the second position, trailing USDT with a market share of 5.29%.