PayPal’s PYUSD Stablecoin Sees Rapid Growth in Market Capitalization
PayPal’s PYUSD stablecoin, launched in partnership with Paxos in August, has experienced significant growth in market capitalization, surpassing $290 million. By the end of August, the total supply of PYUSD reached 43.3 million, with Paxos holding 90% of the supply. However, the market capitalization has since increased more than five-fold to $293 million, with a 70% increase in the past month alone. This places PayPal among the top-ten stablecoin issuers, although Tether USD remains the leader with a market capitalization of over $94 billion.
Factors Contributing to PYUSD’s Growth
The growth of PYUSD can be attributed to its adoption on centralized exchanges like Crypto.com and Kraken, as well as its integration into decentralized finance (DeFi) protocols. Additionally, the distribution of PYUSD has become more widespread, with Crypto.com holding the largest portion at 38.7% of the total supply. Other major holders include DeFiance Capital, Curve, Kraken, and Paxos.
DeFi Integrations for PYUSD
The stablecoin has also started to integrate into various DeFi protocols. For example, Curve includes a liquidity pool with PYUSD and Frax’s decentralized stablecoin, with a total value locked of $135 million. The pool allows for trading between the two stablecoins. There have also been proposals to integrate PYUSD into leading decentralized lending protocol Aave.
PYUSD On-Chain Activity and Trading Volume
On-chain activity for PYUSD primarily consists of swaps into other stablecoins, WETH, and ETH. Nansen expects further integration with DeFi protocols in the future. The stablecoin’s daily trading volume is currently around $29 million, which is approximately 10% of its market capitalization.
Hot Take: PayPal’s PYUSD Stablecoin Surges in Market Capitalization
PayPal’s PYUSD stablecoin has experienced remarkable growth in market capitalization since its launch. With widespread adoption on centralized exchanges and integration into DeFi protocols, PYUSD has positioned itself among the top stablecoin issuers. The recent surge in market capitalization and increased trading volume indicate a growing demand for PYUSD in the crypto market. As PayPal continues to expand its presence in the cryptocurrency space, PYUSD is expected to further establish itself as a prominent stablecoin option for users.
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