PayPal\'s PYUSD Stablecoin Surpasses $500M Market Cap as Weekly Transaction Volumes Exceed $500M

Ever since the PayPal PYUSD stablecoin expanded to the Solana blockchain in May, its supply in the market has shot up by 90% with its market cap surpassing $500 million as of July 8.

PayPal’s (NASDAQ:PYPL) stablecoin, pegged 1:1 to the US dollar, has seen a rapid surge in its supply and trading volumes, especially on the Solana blockchain.

Also known as PYUSD, the stablecoin is now available in two flavors: Solana (SOL) and Ethereum (ETH). Together, they account for a total supply of around $520 million, as shown by the latest data from DeFiLlama.

Out of the total supply, the majority—77% or $399 million—is currently deployed on the Ethereum blockchain. The remaining 23%, or around $118 million, is present on the Solana network.

PYUSD’s adoption on Solana is surging. In the past week alone, the stablecoin’s supply on the blockchain has increased by an impressive 58%. In contrast, PYUSD’s supply on Ethereum has decreased by 6% during the same period.

Solana Developer: PYUSD Sleeper Hit, Makes Coinbase, Circle Irrelevant

The surge in PYUSD stablecoin is also having a positive impact on its trading volumes. According to data from Visa and blockchain analytics platform Allium Labs, PYUSD’s weekly transaction volumes crossed the $500 million mark by the end of last month.

For perspective, this is more than three times the $150 million in weekly trading volumes seen previously.

Solana developer Paul Fidika described the rapid growth of PYUSD as the "sleeper hit on Solana" that is bolstering the blockchain network "as a legit financial alternative."

“Makes Coinbase and Circle irrelevant; their only utility is a fee-charge bridge between bank-accounts crypto addresses,” Fidika added.

DeFi protocols on Solana are embracing PYUSD, which is helping to establish the stablecoin in the blockchain’s ecosystem, several market observers have noted.

Solana is known for having one of the strongest DeFi ecosystems, ranking among the top five in total assets locked, according to data from DeFiLlama.

PYUSD is being actively traded on leading Solana-based decentralized exchanges (DEXs), including Jupiter and Orca, both of which are introducing new products to drive its adoption.

The stablecoin has also been integrated into Kamino Finance, Solana's largest lending and liquidity protocol, further increasing its utility within the ecosystem.

According to 21Shares analyst Tom Wan, the DeFi platform is offering a 23% annual percentage yield (APY) on PYUSD, which is attracting more users seeking yield opportunities.

“A lot of the success can be attributed to Kamino Finance. Over 38% of the supply has been lent on Kamino with a 23% APY. This is also a huge step for the adoption of token extension in DeFi,” Wan said.

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