PayPal’s Stablecoin PYUSD Rises to Fifth-Largest in Market

PayPal’s stablecoin, PYUSD, has ascended to become the fifth-largest stablecoin in the market, a significant milestone achieved just one year after its launch. This recent accomplishment came as PYUSD surpassed USDD, the leading stablecoin within the Tron ecosystem. With this achievement, PYUSD is now poised to climb further up the rankings on CoinMarketCap.

As a result, PYUSD has solidified its position as one of the top stablecoins, pegged 1:1 to the US dollar. Over the past month, PYUSD has not only overtaken USDD but has also outpaced other competing tokens like PAXG, USDB, and TUSD. This rapid rise highlights the strong investor confidence in PayPal’s venture into the crypto space.

PayPal is a well-known brand among the general public, recognized for its ability to facilitate borderless commerce with multiple currencies. Despite being frequently criticized by the crypto community for its centralization and high fees, PayPal’s reputation has improved since its recent foray into cryptocurrencies.

It’s worth noting that PYUSD was launched in mid-August 2023 on the Ethereum network. Since then, the growth of PayPal’s stablecoin has accelerated, particularly after it expanded its presence to the Solana blockchain.

PayPal’s Stablecoin Gains Momentum After Launching on Solana

One of the key drivers behind PYUSD’s growth has been its integration into the Solana blockchain. The low fees and high-speed transactions offered by Solana have led to rapid adoption and a significant increase in the token’s market capitalization.

To illustrate the impact of Solana on PYUSD’s growth, consider that the token has only been active on Solana for three months, compared to approximately 12 months on Ethereum. In the first 9-10 months on Ethereum, PYUSD’s market capitalization reached $398.3 million. However, within just 3-4 months of being launched on Solana, its market capitalization surged to $463 million, according to data from Solscan. Moreover, the minting of PYUSD on the Solana network has outpaced Ethereum, accounting for 56.7% of the total supply.

Within the Solana stablecoin ecosystem, PYUSD now ranks as the third-largest, trailing only behind USDT and USDC, the two undisputed giants in the world of dollar-pegged stablecoins.

This strong performance has also bolstered Solana’s stablecoin sector, positioning it as the fifth-largest ecosystem for major trading volumes. The top spot is held by Ethereum, followed by Tron, BNB Chain, and Arbitrum in descending order.