TL;DR
- Explosive Growth on Solana: PayPal’s PYUSD stablecoin has seen remarkable growth on the Solana blockchain since its May launch. However, it still holds a relatively small market share compared to other stablecoins.
- Distribution Breakdown: Solana-based PYUSD stablecoins have experienced a 230% increase in total circulating supply over the past 30 days, reaching nearly $252 million. Ethereum-based PYUSD tokens, launched in August 2023, have a circulating supply of $329 million.
- Skepticism Overcome: Despite initial doubts, PYUSD has defied expectations. Bank of America analysts predicted slow adoption, but the stablecoin’s performance has been impressive.
PayPal’s PYUSD stablecoin has been making waves on the Solana blockchain since its launch in May. Despite its rapid growth, it still holds a relatively small market share compared to other stablecoins.
Data from Dune reveals that Solana-based PYUSD stablecoins have experienced a staggering 230% increase in their total circulating supply over the past 30 days.
As of now, they boast a supply of nearly $252 million since their debut on May 29. In contrast, Ethereum-based PYUSD tokens, which launched in August 2023, have a total circulating supply of $329 million.
Distribution Breakdown
A closer look at the stablecoin’s distribution reveals that 56.6% of the total supply resides on Ethereum, while the remaining 43.4% is on Solana. This shift toward Solana can be attributed to the integration of PYUSD into decentralized exchanges on the Solana network, making it more accessible and driving adoption.
PYUSD’s Solana Launch
In late May, PayPal announced the launch of PYUSD on the Solana blockchain. The move aimed to enhance transaction speed and cost-effectiveness. By offering users the flexibility to choose between multiple blockchains, PYUSD provides greater control over transactions.
Solana’s reputation for processing high volumes of transactions quickly and efficiently has contributed to the token’s surge in supply, which now stands at $582 million as of July 30.
Skepticism Overcome
Despite initial doubts, PYUSD has defied expectations. Bank of America analysts Alkesh Shah and Andrew Moss predicted slow adoption, but the stablecoin has proven them wrong. Its remarkable performance underscores its resilience and appeal.
Still a Small Slice
Interestingly, PYUSD and other Solana-based stablecoins represent only a fraction of the vast stablecoin market. Tether’s USDT and Circle’s USDC dominate with market caps of $114.4 billion and $33.7 billion, respectively. While PYUSD’s growth is impressive, it remains a challenge in this competitive landscape.
In summary, PYUSD’s journey on Solana has been one of rapid expansion, but it faces stiff competition from established players. As the crypto market continues to evolve, all eyes are on how PYUSD will carve out its niche.
