Markets
PayPal’s PYUSD Supply Soars 90% After Solana Expansion, Market Cap Hits $500M
PayPal PYUSD Stablecoin Supply Grows 90% After enlarged to the Solana blockchain in May, with its market capitalization crossing the $500 million mark on July 8.
According to DeFillama dataThe total supply of PYUSD on Solana and Ethereum reached approximately $520 million on July 8.
Solana is driving PYUSD growth
A breakdown of supply between the two chains shows that $399 million, or 77% of total supply, It’s on Ethereumwhile 118.65 million dollars, equal to 23% of its supply, are destined for Solana.
However, a deeper look at the data shows that its adoption on the Solana network is on the rise, with the supply on the network increasing by about 58% over the past week. In contrast, PYUSD supply on Ethereum has dropped by 6% over the same period.
Not surprisingly, increased supply and better adoption have also increased trading volume. Data from Visa and blockchain analytics platform Allium Labs shows that PYUSD’s weekly transaction volume surpassed $500 million at the end of last month, up from previous averages of around $150 million.
This rapid growth has prompted Solana developer Paul Fidika to describe PYUSD as an “unexpected blow to Solana” because it strengthens the blockchain network “as a legitimate financial alternative.” added:
“[PYUSD] makes Coinbase and Circle irrelevant; their only utility is to act as a bridge between bank accounts and crypto addresses.”
Solana-Based DeFi Protocols Embracing PYUSD
Market observers have noted that PYUSD’s integration with major Solana-based DeFi protocols is helping it build an ecosystem on the blockchain network.
Solana has one of the The largest DeFi ecosystems are boomingwith the total value of assets locked on it ranking among the top five in the industry, according to DeFillama data.
The stablecoin is available on major Solana-based DEXs Jupiter AND killer whalewhich are reportedly introducing new products designed to encourage its use. Additionally, the stablecoin has also been integrated into Solana’s largest lending and liquidity protocol, Kamino Finance.
Tom Wan, an analyst at 21shares, pointed out that the DeFi platform offers an annual percentage yield (APY) of 23% on PYUSD, which has proven attractive to investors looking for yield opportunities.
He declared:
“A large part of the success can be attributed to Kamino Finance. Over 38% of the supply has been lent on Kamino with an APY of 23%. This is also a huge step forward for the adoption of token extension in DeFi.”