- Solana is playing a critical role in bringing PYUSD into the mainstream.
- $1 billion marketcap on the horizon, recap of how PYUSD’s robust marketcap growth has played out since the Solana integration.
It is now over a year since PayPal launched its Stablecoin PYUSD, which is now closing in on the $1 billion valuation. The stablecoin has so far achieved noteworthy growth, particularly after its integration with the Solana[SOL] network.
It is almost three months since the Solana integration and PYUSD is on the fast-lane towards becoming one of the top stablecoins.
PYUSD’s market cap achieved impressive growth in the last 12 months. Interestingly, the stablecoin’s market cap more than doubled since May after its Solana integration.
Source: DeFiLlama
PYUSD had a marketcap of $853 million at press time, which is the closest it has ever been to a $1 billion market cap valuation. Judging by how fast it has gotten so far, it will likely reach that target in a few weeks.
Solana’s role in PYUSD success
The integration of PYUSD stablecoin into the Solana ecosystem has no doubt been a contributing factor to the increadible growth and adoption.
High yields have driven adoption in the Solana ecosystems. PYUSD has particularly received robust adoption on DeFi projects such as Kamino Lend and Orca.
DeFiLlama also lists PYUSD as the 6th largest stablecoin on the Solana network by market cap. PYUSD marekt cap on Solana has also surpassed its market cap on Ethereum.
For context, here is a chart comparing the PYUSD market cap growth between the two networks.
Source: Coinmarketcap
The bridged amount of PYUSD on the Solana network was up by 36.73% in the last seven days and 117% in the last four weeks.
Meanwhile, the same stablecoin’s bridged amount on the Ethereum network was up 2.71% in the last seven days and 0.29% in the last four weeks according to DeFiLlama. This underscores the significance of the Solana blockchain integration.
The high APYs have fueled its robust adoption within the Solana ecosystem.
Solana has had the advantage of cheaper gas fees than Ethereum for quite some time. In addition, its DeFi ecosystem has seen robust growth so far this year. Integrating PYUSD has not only allowed it to tap into more opportunities but also access perhaps one of the most important on-ramps of 2024.
Solana may have also popularized the stablecoin. The rate of adoption by other networks and DeFi platforms has been rising since its Integration with Solana.
These findings confirm the expanding utility that underpins the rapid growth of the stablecoin, and PayPal’s growing involvement in WEB3.
