PayPal's PYUSD Stablecoin Sees 57% Growth in Dominance During Q3 2024

A research team at Hashdex reported that stablecoins' market dominance rose by 3% in the third quarter of 2024.

A research team at Hashdex has reported that stablecoins' market dominance rose by 3% in Q3 2024.

The two most well-known fiat-backed dollar stablecoins, USDT and USDC, saw market shares grow by 1% and 5%, respectively. However, PayPal's PYUSD saw a startling 57% growth in domination during that same period although it was still less dominant than USDT and USDC

The first financial technology company to launch a stablecoin backed by the US dollar was PayPal, which did so in August of last year. Issued by Paxos Trust Company and fully backed by US dollar reserves, such as Treasury bonds and cash equivalents, the PYUSD may be purchased or traded on leading cryptocurrency exchanges and has a 1:1 conversion rate to the haven currency

PYUSD reached a $1 billion market valuation within a year after its launch, nearly twice as quickly as USDC and three times quicker than USDT, the top fiat-backed stablecoins. Earlier this year, PayPal's stablecoin extended its reach to Solana after a successful 2023 debut on Ethereum

According to HashDex Research, the stablecoin's prospects for Q4 2024 and the following year have improved due to the possibility of institutional adoption. “PYUSD is becoming more popular and may continue to gain market share as its distribution expands.”

Stablecoins are becoming more and more popular in the fintech industry. According to reports, the UK-based company Revolut is making good progress in creating its own

The blockchain startup Ripple also announced plans this spring to launch RLUSD, a dollar-backed stablecoin supported by US dollar deposits, short-term government Treasurys, and similar assets

Banks like J.P. Morgan are also entering the transaction settlement industry with the launch of JPM Coin, which aims to enable real-time payments for institutional clients

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