Stablecoins
Why is PayPal’s PYUSD stablecoin doing better on Solana than Ethereum?
Solana dominates PYUSD stablecoin as market cap surges to over $737M as PayPal chooses to expand development.
- PYUSD stablecoin is now the seventh-largest stablecoin in the overall crypto market.
- Historically, the stablecoin has been a catalyst for Solana crossing Ethereum in adoption rates.
PayPal’s PYUSD stablecoin, issued by Paxos, operates on the Solana [SOL] blockchain, enabling fast and secure transactions for over 30 million merchants.
This expansion supports PayPal’s goal of creating a stable digital currency for payments, making it a good opportunity for investors.
At press time, PYUSD was quickly gaining market share, with a press time market cap of around $737 million.
Source: CoinMarketCap
PayPal’s PYUSD stablecoin was the seventh-largest at press time, with its market cap surging over 150% after expanding to Solana, which saw over $6 million in trading volume.
Following its launch on Solana, PayPal became the source of two prophetic indicators in crypto, Solana flipping Ethereum [ETH]
as the go-to chain and transaction privacy becoming mainstream (CT), helping PYUSD’s supply on that network outpace Ethereum.
Source: Kross Roads on X
This move underscores Solana’s rising influence in decentralized finance and its growing importance in the crypto ecosystem.
PYUSD on Solana outpaces Ethereum
The PYUSD stablecoin is expanding rapidly on Solana blockchain, outpacing Ethereum.
This growth is driven by higher yields from Solana’s DeFi protocols, PayPal’s weekly incentives, and a strategic focus on Solana.
As a result, PYUSD’s market share on Solana reached $377 million, surpassing Ethereum’s $356 million.
Source: DefiLlama
The incentives are supported by yields from PayPal’s reserves, establishing Solana as the leading blockchain for PYUSD.
Why did PYUSD expand to Solana?
PayPal expanded its stablecoin PYUSD to Solana due to its cost-effectiveness, high transaction speed, and enhanced compliance through token extensions.
PYUSD’s supply on Solana has surged, signaling potential shifts in the crypto market.
This move may indicate Solana’s rise over Ethereum as the leading blockchain and the growing importance of transaction privacy in the crypto space.
