Stablecoins
PayPal’s PYUSD stablecoin crosses $1B market cap – How Solana helped its rise
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- PayPal celebrates PYUSD’s important milestone of attaining the $1 billion market cap figure.
- A recap of how the Solana network was central in PYUSD’s growth, and how it compares with Ethereum.
It is now a year since PayPal launched its PYUSD stablecoin, which has been ample time to gauge its performance.
It is now clear that the stablecoin has performed incredibly well in its first year, and it just reached an important milestone, aided by Solana [SOL].
PYUSD had a moderate start, but things kicked into high gear when the stablecoin made its debut on the Solana network in May.
It has been growing at a faster pace since then and recently crossed above the $1 billion market cap.
Source: CoinMarketCap
This is an impressive milestone considering that PYUSD’s marketcap was less than $50 million 12 months ago. This new milestone put PYUSD in the list of one of the top fastest growing stablecoins.
It highlighted just how well the stablecoin has been doing as an on-ramp, and adoption has been high courtesy of high yields in the Solana network.
The stablecoin’s marketcap is up by over 270% since the rollout on Solana.
Solana adoption was pivotal to PYUSD growth
As far as dominance is concerned, PYUSD on Solana managed to outpace PYUSD usage and adoption on the Ethereum [ETH] network earlier this month.
The PayPal-backed stablecoin had over $662.07 million within the Solana ecosystem at the time of writing, which is roughly 65.74% of its entire marketcap, and around $345.09 million (34.26%) in the Ethereum network.
Source: DefiLlama
PYUSD’s supply on Ethereum dominated prior to mid-August. This highlights just how fast the stablecoin has been growing on the Solana network compared to Ethereum.
Solana’s impact on PYUSD is evident in the recent performance. According to DefiLlama, PYUSD on Solana grew by 29.36% in the last seven days and an impressive 177% in the last 30 days.
In contrast, it was down by 3.31% on the Ethereum network in the last 7 days and 0.79% in the last four weeks.
PYUSD’s impressive adoption rate now makes it the third most popular stablecoin in the Solana ecosystem. This rapid growth was possible because of the incentives that the Solana network has in place, such as high yields.
In conclusion, PayPal’s PYUSD is only one year old and already making significant strides. This is A solid start, and possibly a sign of more growth to come with deployment on more decentralized networks.
