Is PayPal’s PYUSD Stablecoin in Trouble? Market Cap Drops 30%

PayPal's stablecoin PYUSD has lost nearly 30% of its market capitalization in the past 30 days, falling from over $1 billion to $709 million as of September 26.

The decline is due to Solana’s significant reduction in its market capitalization, which on August 26 represented about 65% of the total.

PYUSD, circulating or locked within the Solana ecosystem, dropped from $662 million to $354 million, while its market capitalization on Ethereum held steady at $348 million.

However, average daily PYUSD remittance volume held steady at $242.2 million, only slightly below the previous month’s average.

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While fluctuations in stablecoin market caps are common, the PYUSD drop coincided with a 1.6% rise in the overall stablecoin market, which added $3 billion.

The decrease is likely related to the decline in DeFi yields, which dropped nearly 50% on platforms like Kamino. PYUSD’s collateral yield fell from 14% in August to 7.6% as of September 24, resulting in a 30% decrease in stablecoins locked in the minutes.

Despite the decline, PYUSD remains the third largest stablecoin in Solana’s network.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.