PayPal's (PYUSD) Stablecoin Ascends to Sixth Spot by Market Cap, Solana (SOL) Ecosystem Benefits

PayPal's PYUSD has ascended to become the sixth largest stablecoin by market capitalization. This rapid growth, particularly over the past ten days, has positioned PYUSD as a formidable player in the digital currency space

PayPal’s (NASDAQ:PYPL) stablecoin, PYUSD, has ascended rapidly in the digital currency market, becoming the sixth largest stablecoin.

Launched by payments giant PayPal in August 2023, PYUSD achieved widespread adoption and circulation in just ten days.

As of August 16, 2024, PYUSD’s total circulating supply increased by $140.9 million, with a market capitalization of $791.9 million. PYUSD has grown more than all other top 10 stablecoins over the past 30 days.

Total circulating supply has increased by 49% since July and currently stands at $734 million, an all-time high. This is the fastest growth rate among all major stablecoins, including Tether (2.8%), USDC (1.2%), DAI (-3.2%), and FDUSD (1.5%).

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— Akshay Poshatwar (@0xakki_qiro) August 17, 2024

An interesting aspect of PYUSD’s rise is its growing presence on the Solana blockchain. Although initially launched on Ethereum, PYUSD has established itself in the Solana ecosystem.

Currently, approximately 567 million tokens (56.7% of circulating supply) of all circulating PYUSD tokens are on the Solana network. The shift highlights Solana’s growing importance in the stablecoin space and could be indicative of a broader trend of people favoring fast, low-cost blockchain networks for stablecoin transactions.

PYUSD’s rapid adoption on Solana has contributed to the blockchain’s rise in the stablecoin ecosystem. Solana is now the fifth largest stablecoin blockchain after Ethereum, TRON, BNB, and Arbitrum. This development is further supported by the recent announcement by cryptocurrency exchange Bybit to integrate PYUSD on Solana, which will likely bring greater trading volume and liquidity to the network.

PYUSD’s growth has attracted much attention in the highly competitive stablecoin market. The token has now surpassed Tron’s USDD to rank sixth on the stablecoin rankings. This achievement is particularly notable given PYUSD’s late entry compared to earlier players in the market.

Looking ahead, PYUSD is about to reach an important milestone. The stablecoin would need to increase its market capitalization by approximately $209 million to reach the coveted $1 billion mark. While this would require a significant increase, the coin’s recent growth trajectory suggests that this goal may be achievable in the near future.

However, PYUSD still faces some challenges as it seeks to move further up the stablecoin rankings. In order to surpass the next largest stablecoin, First Digital USD (FDUSD), PYUSD would need to more than triple its current market cap and add another $1.54 billion in circulation.

The prominence of PYUSD is a major win for the Solana ecosystem. Solana's position in the broader cryptocurrency space will continue to strengthen as more stablecoins and decentralized finance (DeFi) projects choose Solana for its speed and low transaction costs.

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