PayPal’s PYUSD Supply Jumps 90% Following Solana Integration

YEREVAN (CoinChapter.com) — PayPal’s PYUSD stablecoin supply has increased by 90% after its expansion to the Solana blockchain in May. As of July 8, PYUSD’s market capitalization has surpassed $500 million, according to DeFillama data.

The total supply of PYUSD on Solana and Ethereum reached approximately $520 million. Solana has played a crucial role in this growth.

PayPal USD (PYUSD) Market Stats. Source: X PYUSD Supply Shifts to Solana, Boosting Trading Volume

A detailed breakdown shows that $399 million (77%) of PYUSD’s supply is on Ethereum, while $118.65 million (23%) is on Solana. Over the past week, PYUSD supply on Solana increased by 58%, while the supply on Ethereum dropped by 6%.

This growth has led to a significant increase in trading volume. Data from Visa and blockchain analytics platform Allium Labs shows that PYUSD’s weekly transaction volume exceeded $500 million at the end of last month, up from previous averages of around $150 million.

Stablecoin Transaction Trends – Source: Visa Solana’s DeFi Embraces PYUSD, Strengthens Ecosystem

Solana developer Paul Fidika called PYUSD a “sleeper hit on Solana.” He stated that PYUSD strengthens Solana’s position as a financial alternative, adding,

“[PYUSD] makes Coinbase and Circle irrelevant; their only utility is a fee-charge bridge between bank-accounts <-> crypto addresses.”

Paul Fidika on PYUSD’s Impact – Source: @PaulFidika

PYUSD’s integration with major Solana-based DeFi protocols is helping build its ecosystem. Solana has one of the largest DeFi ecosystems, with the total value of assets locked on it ranking among the top five in the industry, according to DeFillama data.

The stablecoin is available on major Solana-based decentralized exchanges (DEXs) Jupiter and Orca. These platforms are introducing new products to encourage the use of PYUSD.

Kamino Finance Drives PYUSD Success with 23% APY

Solana’s largest lending and liquidity protocol, Kamino Finance, offers a 23% annual percentage yield (APY) on PYUSD. Analyst Tom Wan from 21shares said,

“A lot of the success can be attributed to Kamino Finance. Over 38% of the supply has been lent on Kamino with a 23% APY. This is also a huge step for the adoption of token extension in DeFi.”

Tom Wan on PYUSD Growth Source: @tomwanhh

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