{"id":170575,"date":"2024-08-27T13:43:25","date_gmt":"2024-08-27T13:43:25","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=170575"},"modified":"2024-08-27T13:43:42","modified_gmt":"2024-08-27T13:43:42","slug":"paypals-pyusd-breaks-1-billion-mark-solana-expansion-sparks-growth","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/paypals-pyusd-breaks-1-billion-mark-solana-expansion-sparks-growth\/","title":{"rendered":"PayPal\u2019s PYUSD Breaks $1 Billion Mark\u2014Solana Expansion Sparks Growth"},"content":{"rendered":"<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">TL;DR<\/span><\/p>\n<ul style=\"text-align: justify\">\n<li><strong><span data-preserver-spaces=\"true\">Milestone Achievement<\/span><\/strong><span data-preserver-spaces=\"true\">: PayPal\u2019s stablecoin, PYUSD, surpassed $1 billion in market capitalization, driven by its expansion to the Solana blockchain.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">DeFi Incentives<\/span><\/strong><span data-preserver-spaces=\"true\">: Attractive yield incentives on Solana-based DeFi protocols have significantly boosted PYUSD\u2019s adoption and market presence.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Competitive Landscape<\/span><\/strong><span data-preserver-spaces=\"true\"><span data-preserver-spaces=\"true\">: Despite facing competition from established stablecoins like USDT and USDC, PayPal is actively integrating PYUSD into the broader cryptocurrency ecosystem.<\/span><\/span><br \/>\n<hr \/>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">PayPal\u2019s <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/crypto-economy.com\/stablecoins\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">stablecoin<\/span><\/a><span data-preserver-spaces=\"true\">, <\/span><strong><span data-preserver-spaces=\"true\">PayPal USD (PYUSD), has achieved a significant milestone by surpassing $1 billion in market capitalization.<\/span><\/strong><span data-preserver-spaces=\"true\"> Introduced in 2023, PYUSD is tied to the US dollar at a 1:1 ratio and is issued by Paxos Trust Company, a cryptocurrency custodian regulated in the United States.<\/span><!--more--><\/p>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">This milestone highlights the increasing enthusiasm <\/span><\/strong><span data-preserver-spaces=\"true\">for regulated digital currencies that are backed by the dollar. A key factor in PYUSD\u2019s recent surge is its integration with the Solana blockchain. <\/span><\/p>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">In May 2024, PayPal expanded PYUSD to <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/crypto-economy.com\/solana\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Solana<\/span><\/a><span data-preserver-spaces=\"true\">, <\/span><\/strong><span data-preserver-spaces=\"true\">partnering with Crypto.com, Phantom, and Paxos to facilitate user access to the network. This move has significantly boosted PYUSD\u2019s market presence, with its supply of Solana rapidly increasing.<\/span><\/p>\n<h2 style=\"text-align: left\"><span data-preserver-spaces=\"true\">DeFi Incentives Drive Adoption<\/span><\/h2>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">The expansion to Solana has been complemented by attractive yield incentives<\/span><\/strong><span data-preserver-spaces=\"true\"> on DeFi protocols. Solana-based protocols such as Kamino, Drift, and Marginfi have introduced boosted rewards for PYUSD deposits, offering double-digit annualized yields for token holders. <\/span><strong><span data-preserver-spaces=\"true\">These incentives have played a crucial role<\/span><\/strong><span data-preserver-spaces=\"true\"> in driving user adoption and increasing PYUSD\u2019s market cap.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">In just three months, <\/span><strong><span data-preserver-spaces=\"true\">the token\u2019s supply on Solana surged to $650 million.<\/span><\/strong><span data-preserver-spaces=\"true\"> DefiLlama <\/span><strong><a class=\"editor-rtfLink\" href=\"https:\/\/defillama.com\/stablecoin\/paypal-usd\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">data <\/span><\/a><span data-preserver-spaces=\"true\">shows that PYUSD\u2019s supply on Solana increased by an impressive 171%<\/span><\/strong><span data-preserver-spaces=\"true\"> over the past month, nearing Tether\u2019s USDT on the Solana network. Despite the positive outlook for PYUSD, questions remain about the sustainability of this growth.<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-170576\" src=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/08\/PYUSD.jpg\" alt=\"PayPal\u2019s PYUSD Breaks $1 Billion Mark\u2014Solana Expansion Sparks Growth\" width=\"825\" height=\"300\" srcset=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/08\/PYUSD.jpg 825w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/08\/PYUSD-300x109.jpg 300w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/08\/PYUSD-768x279.jpg 768w\" sizes=\"(max-width: 825px) 100vw, 825px\" \/><\/p>\n<h2 style=\"text-align: left\"><span data-preserver-spaces=\"true\">Competitive Landscape<\/span><\/h2>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Despite its impressive growth, <\/span><strong><span data-preserver-spaces=\"true\">PYUSD faces stiff competition<\/span><\/strong><span data-preserver-spaces=\"true\"> from established stablecoins like Tether\u2019s USDT and Circle\u2019s USD Coin (USDC), which have market capitalizations of nearly $118 billion and $35 billion, respectively. <\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">However, PayPal\u2019s president and CEO, Dan Schulman, emphasized the importance of stablecoins in the evolving digital currency ecosystem, highlighting the demand for a reliable bridge between traditional and digital finance.<\/span><\/p>\n<h2 style=\"text-align: left\"><span data-preserver-spaces=\"true\">PYUSD&#8217;s Future Prospects<\/span><\/h2>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">PayPal is actively working to weave PYUSD into the larger cryptocurrency landscape<\/span><\/strong><span data-preserver-spaces=\"true\">, showcasing its goal to establish the stablecoin as a significant contender in the market. <\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">The company\u2019s partnerships with Web3 infrastructure providers and cryptocurrency exchanges aim to expand PYUSD\u2019s utility and accessibility. While concerns linger about the sustainability of growth driven by incentives, the current momentum suggests a promising future for PYUSD on the Solana network.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>TL;DR Milestone Achievement: PayPal\u2019s stablecoin, PYUSD, surpassed $1 billion in market capitalization, driven by its expansion to the Solana blockchain. DeFi Incentives: Attractive yield incentives on Solana-based DeFi protocols have significantly boosted PYUSD\u2019s adoption and market presence. Competitive Landscape: Despite facing competition from established stablecoins like USDT and USDC, PayPal is actively integrating PYUSD into &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"PayPal\u2019s PYUSD Breaks $1 Billion Mark\u2014Solana Expansion Sparks Growth\" class=\"read-more button\" href=\"https:\/\/crypto-economy.com\/paypals-pyusd-breaks-1-billion-mark-solana-expansion-sparks-growth\/#more-170575\" aria-label=\"More on PayPal\u2019s PYUSD Breaks $1 Billion Mark\u2014Solana Expansion Sparks Growth\">Read more<\/a><\/p>\n","protected":false},"author":32,"featured_media":170577,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102,84,74],"tags":[4620,4917,5348,5016],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/170575"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=170575"}],"version-history":[{"count":1,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/170575\/revisions"}],"predecessor-version":[{"id":170578,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/170575\/revisions\/170578"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/170577"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=170575"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=170575"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=170575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}