PayPal’s successful expansion of PYUSD stablecoin to Solana blockchain
PayPal’s decision to expand its PYUSD stablecoin to the Solana blockchain has proven to be very successful, with the digital asset now ranking among the six largest stablecoins. The supply of PYUSD is steadily approaching $1 billion, showcasing its growing popularity.
PYUSD supply surges with Solana integration
According to CoinGecko, the supply of PYUSD has increased by over $300 million (45%) in the past month alone, reaching close to $820 million. This significant growth makes it the fastest-growing stablecoin in its category. The expansion to Solana has played a crucial role in driving this adoption.
Analysts attribute PYUSD’s rapid growth to its integration with the Solana blockchain. Initially launched on Ethereum in August 2023, PYUSD saw steady growth in the first 10 months. However, after expanding to Solana in May 2024, adoption skyrocketed due to attractive incentives offered to users of Solana-based decentralized finance protocols like Camino and Drift.
Comparative success on Solana and Ethereum
Despite some skepticism about the sustainability of high-yielding stablecoins, PYUSD’s backing by U.S. dollars sets it apart from other failed projects in the industry. PYUSD balances on Solana have surpassed those on Ethereum, with Solana’s PYUSD balance at $462 million and Ethereum’s at approximately $366 million, solidifying its position as the third-largest stablecoin on Solana.
The widespread adoption of PYUSD on exchanges is evident, with Bybit, one of the top three cryptocurrency exchanges, now supporting PYUSD deposits and withdrawals on the Solana network. Bybit’s rapid user growth, reaching 40 million users and adding 10 million new users in less than a month, further emphasizes PYUSD’s significance in the market.
Future outlook and implications
As PYUSD continues to thrive on the Solana blockchain, its growing supply and adoption signal a promising future for the PayPal-backed stablecoin. With attractive incentives and solid backing, PYUSD’s success sets a benchmark for stablecoins seeking significant growth and mainstream acceptance.
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