PayPal’s PYUSD Becomes Sixth-Largest Stablecoin

PayPal’s stablecoin, PYUSD, has recently surpassed Tron’s USDD in market capitalization, positioning itself as the sixth-largest stablecoin in the crypto space.

In just ten days, PYUSD’s market cap surged by $140.9 million, growing from $651 million on August 6 to $791.9 million by August 16.

This increase in PYUSD’s market value enabled it to overtake USDD, according to CoinGecko’s data. The stablecoin is issued by Paxos Trust Company, which is regulated by the New York Department of Financial Services. Paxos is known for its various asset-backed stablecoins, including Pax Dollar (USDP) and Pax Gold (PAXG).

Additionally, Solana has seen a notable increase in PYUSD’s supply, surpassing Ethereum. As of August 15, Solana holds 56.7% of PYUSD’s total supply, amounting to $449 million, while Ethereum’s share has decreased. This shift began after PYUSD’s launch on Solana on May 29 and accelerated sharply starting June 26. By August 12, Solana had overtaken Ethereum in PYUSD supply.

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Crypto exchange Bybit has recently started supporting Solana-based PYUSD transactions, allowing deposits and withdrawals through Solana. Despite regulatory challenges, including an SEC subpoena reported in PayPal’s November 1, 2023, 10-Q filing, PYUSD has shown remarkable growth. Over the past 30 days, PYUSD has led stablecoin market expansion, growing by 35% since July 16. To reach a $1 billion market cap, PYUSD needs an additional $209 million.

Launched on August 7, 2023, PayPal’s PYUSD is fully backed by US dollar deposits, short-term U.S. Treasury securities, and cash equivalents. Currently, the total market cap of dollar-pegged stablecoins stands at approximately $161.6 billion, with Tether’s USDT leading the market at a 17.88% share and Circle’s USDC in second place with 5.29%.