PayPal’s PYUSD Supply on Solana Outpaces Ethereum
In a significant milestone for PayPal’s U.S. dollar-pegged stablecoin, PYUSD, the supply on the Solana network has now surpassed its supply on the Ethereum network. As of the latest data, Solana-based PYUSD has a circulating supply of 377 million tokens, exceeding the 356 million tokens on Ethereum.
Rapid Growth Since Launch
PayPal launched its PYUSD stablecoin on the Ethereum network in August 2023, in partnership with custodian firm Paxos. The initial rollout saw a rapid increase in supply, with the total reaching 230 million by the end of 2023. Over the following months, the total supply of PYUSD more than tripled, surpassing 733 million tokens across all networks.
The stablecoin expanded to Solana in May 2024, where it quickly gained traction. The adoption of PYUSD by Solana-based decentralized exchanges (DEXs) such as Jupiter and Orca has likely contributed to its rapid growth on the network. These exchanges have integrated PYUSD into their pools, providing liquidity alongside other top stablecoins like USDC and USDT.
Solana’s Appeal for Stablecoin Issuers
Solana’s increasing popularity as a network for stablecoin issuance is evident from the growing supply of PYUSD. The network’s high throughput, low transaction fees, and growing DeFi ecosystem make it an attractive platform for stablecoin issuers. The success of PYUSD on Solana underscores the network’s ability to compete with Ethereum, traditionally the go-to platform for stablecoin deployment.
PayPal’s Position in the Stablecoin Market
With a market capitalization of $733 million, PayPal’s PYUSD has secured its place as the fourth-largest centralized stablecoin issuer. It trails behind Tether (USDT) and Circle (USDC), which dominate the market with caps of $120 billion and $36 billion, respectively. First Digital (FUSD) also ranks ahead of PYUSD in terms of market capitalization.
The expansion of PYUSD on Solana marks a significant development in the stablecoin landscape, as more issuers and users explore alternatives to Ethereum for deploying and utilizing stablecoins. This trend could lead to further diversification in the networks used for stablecoin operations, potentially driving innovation and competition in the space.
The Future of PYUSD on Solana and Beyond
As PYUSD continues to grow on Solana, it will be interesting to observe how the stablecoin’s supply and usage evolve across different networks. The increasing supply on Solana highlights the network’s potential to support large-scale stablecoin operations and its growing importance in the broader DeFi ecosystem.
PayPal’s move to diversify PYUSD across multiple networks reflects a strategic effort to enhance the stablecoin’s accessibility and utility. As the stablecoin market continues to expand, PayPal’s PYUSD may further solidify its position as a major player, contributing to the ongoing development of decentralized finance and digital payments.
