TL;DR
- Solana Surpasses Ethereum in PYUSD Supply: The supply of PayPal’s U.S. dollar-pegged stablecoin (PYUSD) on Solana has exceeded 377 million, surpassing the 356 million supply on Ethereum since its launch on Solana in May 2024.
- Rapid Growth and Market Position: PYUSD’s total supply has more than tripled since its Ethereum launch in August 2023, reaching over 733 million. PayPal is now the fourth-largest centralized stablecoin issuer with a market cap of $733 million.
- Driving Factors and Future Prospects: Generous incentives on Solana DeFi platforms have driven PYUSD’s growth, offering over 20% APY compared to Ethereum’s 3.59%.
The supply of PayPal’s U.S. dollar-pegged stablecoin (PYUSD) on the Solana blockchain has surpassed its supply on the Ethereum network. Since its launch on Solana in May 2024, the supply of Solana-based PYUSD tokens has exceeded 377 million, while Ethereum-based PYUSD tokens have a supply of 356 million, according to Etherscan data.
PayPal introduced its U.S. dollar-pegged stablecoin on the Ethereum network in August 2023, in collaboration with custodian firm Paxos. By the end of 2023, PYUSD’s supply had reached 230 million. Over the past year, the total supply of PYUSD has more than tripled, surpassing 733 million, equivalent to $733 million in value.
The stablecoin’s expansion to Solana in May 2024 marked a pivotal moment. Solana-based decentralized exchanges such as Jupiter and Orca have integrated PYUSD into their liquidity pools, contributing to the stablecoin’s rapid growth on the network.
This expansion has positioned Solana as a key player in the stablecoin market, alongside other major centralized stablecoins like USDC and USDT.
Market Position and Future Prospects
With a market cap of $733 million, PayPal has become the fourth-largest centralized stablecoin issuer, trailing behind Tether (USDT), Circle (USDC), and First Digital (FUSD). According to on-chain data, USDT and USDC have market caps of $120 billion and $36 billion, respectively.
Solana has emerged as the unofficial home for PYUSD, with 51.47% of all PYUSD now residing on the Solana network, as per DeFiLlama data. This shift indicates a growing preference among holders for the opportunities available on Solana over Ethereum.
Driving Factors Behind PayPal’s PYUSD Growth
The remarkable growth of PYUSD on Solana can be attributed to several factors. Generous incentives offered by Solana DeFi platforms such as Kamino Finance, Drift Protocol, and MarginFi have played a crucial role.
These platforms provide depositors with attractive annual percentage yields (APY) of over 20% for lending out their PYUSD, compared to the significantly lower yields on Ethereum, where markets like AAVE offer around 3.59%.
As PYUSD continues to gain traction on Solana, the stablecoin’s future looks promising, with potential for further growth and adoption in the decentralized finance ecosystem.
