PayPal’s PYUSD stablecoin PYUSD capitalization approaches $1 billion thanks to integration with Sola

The recent integration of the PYUSD steiblcoin with Solana caused its volume and popularity to skyrocket, strengthening the asset’s position in the market.

This digital asset is now one of the top 6 steiblcoins, with its market capitalization approaching the $1 billion mark.

PYUSD volume grew by more than $300 million in a month

According to CoinGecko, the volume of PYUSD has increased by more than $300 million or 45% over the past month, reaching approximately $820 million. This made it the fastest growing stablecoin among its peers.

Analysts attribute PYUSD’s growth to its recent integration with Solana. PayPal first launched PYUSD on Ethereum in August 2023. While the stablecoin grew steadily for the first 10 months, its popularity soared after expanding to Solana in May 2024.

The success is largely due to attractive incentives for users of Solana-based DeFi protocols such as Kamino and Drift. These platforms offer users significant rewards, promising nearly 20% annualized returns for depositing stablecoin.

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Some market experts have expressed skepticism about the sustainability of this approach, citing the history of Terra’s UST algorithmic stablecoin. However, PYUSD differs from UST in that it is backed by US dollars – each token issued is backed by an equivalent amount.

At the time of writing, PYUSD’s balance on Solana exceeds that of the steiblcoin on Ethereum, totaling $462 million and $366 million respectively. This makes it the third largest stablecoin on Solana after Circle’s USDC and Tether’s USDT.

The rapid growth of PYUSD has also led Bybit, one of the three largest cryptocurrency exchanges, to add support for stablecoin input and output on the Solana network.

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