PayPal’s resolution to increase its PYUSD stablecoin to the Solana blockchain is proving extremely profitable.
The digital asset now ranks among the many prime six stablecoins, with its provide quietly approaching the $1 billion milestone.
PYUSD Provide Grows by Over $300 Million in a Month
Based on CoinGecko, PYUSD’s provide has grown by greater than $300 million, or 45%, prior to now month. This makes it the fastest-growing stablecoin amongst its friends, with a present provide near $820 million.
Learn extra: 7 Finest Crypto Platforms To Purchase PayPal Stablecoin (PYUSD)
Analysts hyperlink PYUSD’s development to its integration with the Solana blockchain. PayPal initially launched PYUSD on Ethereum in August 2023. Whereas the stablecoin noticed regular development throughout its first 10 months, its adoption soared after the growth to Solana in Could 2024.
PYUSD’s success on Solana has been linked to the engaging incentives for customers of Solana-based DeFi protocols like Kamino and Drift. These platforms present customers with vital rewards, providing almost 20% annual returns for depositing the stablecoin.
Some market observers have expressed skepticism concerning the sustainability of this strategy, citing the trade’s historical past with high-yield stablecoins like Terra’s failed algorithmic UST stablecoin. Nevertheless, PYUSD differs from UST as a result of it’s backed by the greenback—which means every PYUSD token issued is supported by an equal greenback in reserve.
However, the excessive yields have pushed PYUSD’s steadiness on Solana to surpass that on Ethereum. Information from DeFiLlama reveals that PYUSD on Solana now exceeds $462 million, in comparison with round $366 million on Ethereum. This makes PayPal-backed belongings the third-largest stablecoin on Solana, following Circle’s USDC and Tether’s USDT.
Learn extra: How To Purchase PayPal Stablecoin (PYUSD)
In the meantime, the fast development of PYUSD on Solana has additionally led to wider adoption on exchanges. Bybit, one of many prime three cryptocurrency exchanges, now helps PYUSD deposits and withdrawals on the Solana community. Bybit not too long ago reached 40 million customers, including 10 million new customers in lower than a month.
The publish PayPal’s PYUSD Stablecoin Approaches $1 Billion, Pushed by Solana Integration appeared first on BeInCrypto.
