PayPal’s PYUSD market cap hits $500m after Solana expansion

by

As a researcher with a background in blockchain technology and digital currencies, I find the recent developments surrounding PayPal’s PYUSD stablecoin on the Solana (SOL) ecosystem to be quite intriguing. Based on the data available, it is clear that this integration has resulted in significant growth for PYUSD’s weekly transaction volumes and market supply.

Since Paypal’s entry into the Solana ecosystem, there have been over 300 million weekly transactions involving its stablecoin.

As a researcher studying the digital finance sector, I’ve observed an intriguing development in the weekly transaction volumes of PayPal’s stablecoin, PYUSD. Previously hovering around $150 million, these figures have experienced a remarkable surge, now exceeding $500 million. This growth can be attributed to the recent expansion of PayPal’s PYUSD to the Solana blockchain in May. The resulting increase in market supply has been substantial, with it now surpassing the half-billion-dollar mark.

As a researcher investigating the decentralized finance (DeFi) landscape, I came across DeFiLlama’s data which revealed some interesting insights regarding Pyuu Dollar (PYUSD). According to this reliable source, the total supply of PYUSD is approximately $534 million, with a split between Ethereum and Solana networks. Specifically, about 74% of this amount is located on Ethereum, while the remaining 25% resides on the Solana network.

Implications 

May 29 saw the announcement from the leading online payment company that their stablecoin would debut on the Solana blockchain.

I have discovered that the company intends to announce some changes in order to enhance the speed and reduce costs associated with using PYUSD. By transitioning to the Solana network, users will be provided with an expanded range of blockchain solutions for handling their PYUSD transactions.

The newly introduced PYUSD stablecoin on the Solana platform is generating significant buzz despite having a relatively small market capitalization of $134 million, in comparison to USDC’s impressive $2.4 billion market cap. PayPal’s potential imposition of transfer fees for utilizing their currency adds further significance to this development. This represents a substantial advancement towards establishing Solana as a viable financial contender.

— Paul Fidika (@PaulFidika) July 8, 2024

Over the past week, there’s been a significant increase of 61% in the amount of PYUSD available on the Solana blockchain. Conversely, the supply of this stablecoin has dropped by 7% on Ethereum. This shift has led to a substantial rise in trading activity for PYUSD, with weekly transactions reaching a record high of $500 million towards the end of last month.

Paul Fidika, a developer at Solana, has referred to PYUSD as the “unsung hero” or “hidden gem” of Solana’s offerings. His observation underscores Solana’s potential as a serious contender in the financial sector. Additionally, he pointed out that this integration could potentially diminish the significance of financial technology heavyweights like Coinbase and Circle in certain use cases.

Read More

2024-07-09 16:47