PYUSD ranks as the fourth-largest centralized stablecoin issuer after Tether (USDT), Circle (USDC), and First Digital (FUSD).
PYUSD, the United States dollar-pegged stablecoin from PayPal Holdings Inc (NASDAQ: PYPL), has seen a disparity in its supply on the Solana (SOL) blockchain compared to the Ethereum (ETH).
Data from Dune Analytics shows that PYUSD, which launched on the Solana ecosystem in May, has a supply of 377 million on the blockchain. On the other hand, Ethereum-based PYUSD is currently at 356 million, according to data from Etherscan. The figure for Solana corresponds to a 5.6% increase over that of Ethereum.
Solana Overtakes Ethereum in 30 Days in PayPal USD Volume
Noteworthy, PYUSD went live on Ethereum way before Solana. Precisely, it launched on the Ethereum blockchain in August 2023 through a partnership with crypto custodian firm Paxos. For the first few months following the rollout, the stablecoin performed significantly well, with its supply hitting 230 million by the end of the year.
This difference may have resulted from reduced engagement and interaction with the stablecoin on the Ethereum blockchain. This reflects the total supply growth that PYUSD has recorded so far. In July, Coinspeaker reported that the market supply of the stablecoin skyrocketed by 90% right after it launched on Solana.
As of July 9, DeFiLlama data showed that the PYUSD total supply on the Solana and Ethereum blockchains touched $520 million. At the time, the significant percentage represented by 77% ($399 million) resided on Ethereum while the other 23% ($118 million) stayed on Solana.
The stance changed suddenly, with the Solana-based PYUSD stablecoin seeing as much as a 230% increase in total circulating supply within 30 days. So far, PYUSD has gathered up to 733 million in total supply, and as a stablecoin pegged to the USD 1:1, the market cap is equivalent to $733 million.
At such a level, PYUSD ranks as the fourth-largest centralized stablecoin issuer after Tether (USDT), Circle (USDC), and First Digital (FUSD).
Solana Provides the Push That PYUSD Needs
After its launch on Solana, many Solana-based Decentralized Exchanges (DEXes) like Jupiter and Orca have added the stablecoin to their pools. As a result of this integration, the stablecoin became more accessible, leading to better adoption. This move likely triggered the sizable jump in the stablecoin’s growth on the network.
One such integration is the recent launch of PYUSD on the Filipino mobile payments service GCash via the Solana network.
It is worth noting that top centralized stablecoins like USDC and USDT also saw a supply surge in the Solana ecosystem. This general surge reflects Solana’s expertise in quickly processing large numbers of transactions with minimal costs.
It remains unknown if PYUSD will soon expand to another blockchain, but such integrations usually offer users the flexibility of choosing between multiple protocols. In the long run, this helps them gain greater control over their transactions.
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