In just over a year, PayPal USD (PYUSD) has managed to cross the billion dollar market capitalization mark, something that USDC and USDT had failed to do. However, there is still a long way to go for PYUSD to catch up with its 2 rivals, as their lead is considerable.
PYUSD Market Cap Hits $1 Billion in Just 383 Days
PayPal USD (PYUSD), the stablecoin created by online payments giant PayPal, has officially passed the billion dollar market capitalization markIt took a year for the cryptocurrency, whose price is indexed to the dollar, to reach this symbolic level.
🔎 To understand everything – PayPal USD (PYUSD), the cryptocurrency of the payments giant with 430 million users
It was at the beginning of August 2023 that Paypal decided to merge its expertise in the world of online payments with that of blockchain. From this merger was born the PYUSD, a stablecoin issued by Paxos Trust Companyan American company with which PayPal has partnered and known for issuing Binance's stablecoin, BUSD.
It was Paxos, on X, who solemnly announced that it had crossed the billion dollar mark in market capitalization.
Over the weekend, PayPal USD (PYUSD) hit $1 billion in market cap just 383 days after launch. PayPal USD reached this milestone nearly 2x faster than USDC and 3x faster than USDT. pic.twitter.com/9w3jTTmmD7
— Paxos (@Paxos) August 26, 2024
In his publication, The company highlights that PYUSD reached this milestone 2x faster than Circle's stablecoin, USDC, and 3x faster than Tether's, USDT, who are currently the 2 leaders in the stablecoin world.
Overall, Ethereum, the blockchain on which PayPal's stablecoin was initially launched, hosts $373 million worth of PYUSD distributed among over 12,500 holdersIn 383 days of existence, 227,900 PYUSD transfers have been recorded on Ethereum.
The numbers are even more significant on the Solana blockchain, as PYUSD was only launched there last May. 647 million PYUSD are recorded there, held by 4,211 people for a total of more than 2.1 million transfers recorded.
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The arrival of PYSUD on the Solana blockchain had a significant impact on its growth. In early August, the stablecoin's supply on Solana significantly exceeded that on Ethereum. Thus, the supply of PYUSD has increased by 271% in just 3 months since its arrival on Solana.
In addition to its arrival on Solana, PYUSD was able to benefit from several partnerships in order to grow. PayPal has partnered with Web3 infrastructure provider MoonPay to make it possible to acquire cryptocurrencies directly from a PayPal account..
This partnership has expanded with the arrival of Polymarket which now allows betting to be made through payments made directly from PayPal in fiat currency or PYUSD.
Also, to strengthen the accessibility of its stablecoin, PayPal has approached the crypto-bank Anchorage Digital. The latter launched a program promoting yield farmingand rewarding users who held PYUSD on its platform.
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However, for comparison, theUSDC and USDT remain far ahead in market capitalizationwith $34.5 billion and $118 billion respectively.
PYUSD cements its fifth place in the stablecoin rankings after crossing $1 billion. DAI and FDUSD complete the top five, each with $5.3 billion and $3.1 billion in market capitalization.
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Surprised by the rise of crypto-assets in the late 2010s, I started to closely follow this sector that fascinates me to the highest degree. When I am not in football stadiums, rugby or handball halls, I work on writing relevant articles about cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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