PYUSD market cap rises 150% following Solana launch

PayPal USD (PYUSD) market cap leaped by 150% since its expansion to Solana on May 29, with the stablecoin's total value now sitting at $684 million

PayPal USD (PYUSD) market cap increased by 150% following its expansion to Solana on May 29. According to DefiLlama data, the stablecoin’s total value now stands at $684 million.

Interestingly, PYUSD usage is nearly evenly split between Solana and Ethereum, with each blockchain accounting for 48.32% and 51.68% dominance, respectively.

This substantial move by PYUSD within Solana’s DeFi ecosystem may be linked to the incentives campaign among its applications, such as Kamino. On the Solana-based money market, PayPal’s stablecoin offers the highest annual percentage yield (APY) to be supplied as collateral and the lowest borrow rate.

However, despite its growth, PYUSD remains significantly behind its more established counterparts, such as Tether USD (USDT) and USD Coin (USDC). Among Solana’s stablecoins, USDC commands 70.5% of the total market value, while USDT holds 20%. PYUSD ranks third with close to 9% dominance.

Despite its clear lead within the Solana ecosystem, USDC accounts for only 20.5% of the total market cap among stablecoins, less than three times more than USDT’s 69.6% dominance.

Recently, USDT’s market cap crossed $115 billion, prompting Tether’s CEO Paolo Ardoino to announce plans to expand the company’s compliance team to continue building.

Furthermore, in a press note, Ardoino stated:

“The recent climb to a $115 billion market cap for USDT highlights its growing adoption as the ‘digital dollar of choice’ for a vast array of transactions and use cases beyond just cryptocurrency trading. We’re seeing a pivot in how digital assets are used, with USDT becoming an alternative to traditional savings and checking accounts, especially in emerging markets that are dealing with currency devaluation.”

According to the Tether CEO, people around the world understand and trust the stability of the dollar, and USDT provides a “stable digital representation” of it.

The post PYUSD market cap rises 150% following Solana launch appeared first on CryptoSlate.

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