PYUSD stablecoin by PayPal, backed by the US dollar, is experiencing significant growth on the Solana network. Data from DefiLlama shows that PYUSD’s supply on Solana has now exceeded that on Ethereum, marking a significant milestone for this stablecoin launched by PayPal.
Comparison of Offerings Between Solana and Ethereum
Since its introduction on Solana on May 29, 2024, the supply of PYUSD has reached 377 million tokens on this network, while on Ethereum, the supply stands at 356 million tokens. This difference reflects the growing adoption of the stablecoin on Solana, despite being initially launched on Ethereum in August 2023 in collaboration with the custody firm Paxos.
History and Development of PYUSD
When PayPal launched PYUSD on Ethereum, the stablecoin quickly reached a supply of 230 million tokens before the end of 2023. Since then, the total supply of PYUSD has tripled, exceeding 733 million circulating tokens, positioning PayPal among the leading issuers of centralized stablecoins.
Market Position of PayPal in the Stablecoin Ecosystem
The expansion of PYUSD on Solana can be attributed to several factors. Decentralized exchanges based on Solana, such as Jupiter and Orca, have added PYUSD to their liquidity pools, thereby strengthening its presence on the network. This inclusion, coupled with the coexistence of major stablecoins like USDC and USDT on Solana, has facilitated the rapid adoption of PYUSD.
With a market capitalization of 733 million dollars, PayPal ranks as the fourth largest issuer of centralized stablecoins, behind giants like Tether (USDT), Circle (USDC), and First Digital (FUSD). For comparison, USDT and USDC dominate the market with respective market caps of 120 billion and 36 billion dollars.
Future Perspectives
The exceeding supply of PYUSD on Solana compared to Ethereum could signal a shift in the dynamics of blockchain networks for stablecoins. Despite PayPal’s prominent position, PYUSD adoption was disappointing on Ethereum.
The performance of PYUSD on Solana, a network known for its fast transactions and low costs, could continue to attract users and additional integrations in the crypto ecosystem. This could also influence the strategy of PayPal and other market players regarding the future distribution of their digital assets.
