PayPal’s PYUSD supply grows 90% after Solana expansion, market cap hits $500 million

PayPal’s PYUSD supply grows 90% on Solana expansion, market cap hits $500M

PayPal’s PYUSD stablecoin supply has grown by 90% since expanding onto the Solana blockchain in May, giving it a market cap of over $500 million as of July 8.

According to data from DeFillama, the total supply of PYUSD on Solana and Ethereum reached approximately $520 million on July 8.

Solana drives growth in PYUSD

Looking at the supply breakdown of the two chains, 77% of the total supply, or $399 million, is on Ethereum, while 23% of the supply, or $118.65 million, is on Solana.

However, further analysis of the data shows that adoption on the Solana network is on the rise, with the network’s supply growing by around 58% over the past week. In contrast, the supply of PYUSD on Ethereum has fallen by 6% over the same period.

Naturally, rising supply and improved adoption have led to higher trading volumes: Weekly trading volume for PYUSD surpassed $500 million late last month, up from a historical average of around $150 million, according to data from Visa and blockchain analytics platform Allium Labs.

This rapid growth has led Solana developer Paul Fidyka to describe PYUSD as a “hit wonder for Solana” as it strengthens the blockchain network “as a legitimate financial alternative.” He added:

“[PYUSD] Coinbase and Circle will become irrelevant. Their only utility is as a fee bridge between bank accounts and crypto addresses.”

Solana-Based DeFi Protocol Adopts PYUSD

Market observers noted that the integration of PYUSD with major Solana-based DeFi protocols is helping to build an ecosystem on the blockchain network.

Solana is one of the largest and thriving DeFi ecosystems, ranking in the top five in the industry by total value of assets locked there, according to data from DeFillama.

The stablecoin is available on the major Solana-based DEXs, Jupiter and Orca, which are reportedly introducing new products designed to facilitate the stablecoin’s use. Additionally, the stablecoin has also been integrated into Kamino Finance, Solana’s largest lending and liquidity protocol.

21shares analyst Tom Wang noted that the DeFi platform offers a 23% annualized yield (APY) on PYUSD, proving attractive to investors seeking yield opportunities.

He said:

“Much of this success is due to Camino Finance. Over 38% of the supply is now on loan to Camino at 23% APY. This is a huge step forward for token expansion adoption in DeFi.”

The post PayPal’s PYUSD Supply Increases 90% After Solana Expansion, Pushing Market Cap to $500 Million appeared first on CryptoSlate.

Click here for more of the latest cryptocurrency news – Latest Crypto News

For more business news click here – Latest Business News

0 Comments

Leave a Comment