PYUSD loses 35% of its stablecoin cap as USDC makes largest transfer in history
Here is why Tether and Circle may continue dominating the stablecoin sector.
Stablecoins are dominating tokenization, with a market cap of $315.62 billion as of press time. Tether’s USDT continues to be the dominant stablecoin with 59%, seconded by Circle’s USDC at 24%.
However, the stablecoin sector has seen a massive spike as institutions like PayPal have transitioned to accepting crypto, thus launching PYUSD.
PYUSD’s cap drops sharply as USDC’s largest transfer
Recent analysis shows that PayPal’s PYUSD was tumbling despite making an all-time high of $4.20 billion in market cap in March.
PYUSD has since been contracting, with the market cap collapsing about 35%. Its cap now trades at $2.47 billion, with $1.80 billion on the Ethereum [ETH] network.
On Solana [SOL], Arbitrum One [ARB], and Stellar Lumens [XLM], the caps were $703 million, $261 million, and $3 million, respectively, in resistance.
While PYUSD was losing its cap, Circle made its largest transfer in history. The transaction involved sending $4.40 billion USDC to the Coinbase Hyperliquid deployer.
The move changes liquidity depth, stablecoin flows, and trading activity on both Coinbase and HyperliquidX [HYPE].
On top of that, Circle minted $750 million in USDC on Solana in the past 24 hours. Hence, its market cap sits at $74.78 billion.
USDT and USDC to continue dominating stablecoin sector
In this context, USDT and USDC remain the dominant stablecoins. For instance, USDC’s asset transfer count for the past week was at $133.6 million, slightly less than USDT’s $176.9 million.
Overlaying USDT’s data against stablecoin issuers, its weekly asset transfer count was 176 million, compared to 392 million. This further affirmed the dominance of USDT and USDC in this sector.
Over the past month, the USDC asset transfer count was up 27% to $466 million, while USDT grew by 2.1% to around $1.40 trillion.
Holders of USDT had grown by more than 5%, while those of USDC increased by 4.7%.
Stablecoin market cap projection
Currently, the stablecoin market cap is not limited to USD alone; it is expanding into other currencies, including the Euro and Yen, among others.
That has prompted Dragonfly’s Rob Hadick to predict a potential 10x growth as payment adoption expands. He argued that they collapse the existing infrastructure that includes banks and reduce dependency on intermediaries.
For instance, Tempo, which is a payment infrastructure, saw its stablecoin supply surge by 35% in a week. Its total reached $30 million, but it remained small.
Final Summary
- PayPal’s PYUSD market cap collapses by 35% as Circle’s USDC makes the largest transfer in history of $4.4 billion.
- Data shows that Tether and Circle may continue to dominate the stablecoins amid a projected 10x growth in the sector.
