PayPal’s successful expansion of PYUSD stablecoin on Solana blockchain
PayPal’s decision to expand its PYUSD stablecoin to the Solana blockchain has been met with great success. Currently, the digital asset is among the six largest stablecoins, with its supply inching closer to the $1 billion mark.
Impressive growth in PYUSD supply
According to CoinGecko, the supply of PYUSD has surged by over $300 million (45%) in the past month alone. This rapid growth has propelled the current supply of PYUSD to nearly $820 million, making it one of the fastest-growing stablecoins in the market.
Integration with Solana blockchain fuels growth
Analysts attribute the exponential growth of PYUSD to its integration with the Solana blockchain. Initially launched on Ethereum in August 2023, PYUSD gained traction over the first 10 months. However, after the expansion to Solana in May 2024, adoption skyrocketed.
The success of PYUSD on Solana can be attributed to the enticing incentives offered to users of Solana-based decentralized finance protocols like Camino and Drift. These platforms provide generous rewards, with annual returns on stablecoin deposits reaching up to 20%.
Comparing PYUSD balances on Solana and Ethereum
Despite concerns about the sustainability of high-yielding stablecoins, PYUSD stands out as it is backed by U.S. dollars, ensuring that each PYUSD token is fully backed by reserves. The balances of PYUSD on Solana have surpassed those on Ethereum, with Solana’s PYUSD balance at $462 million, outpacing Ethereum’s $366 million. As a result, PYUSD now ranks as the third-largest stablecoin on Solana, following USDC and USDT.
Moreover, the rapid expansion of PYUSD on Solana has led to its widespread adoption on exchanges. Bybit, a major cryptocurrency exchange, now supports PYUSD deposits and withdrawals on the Solana network. Bybit has recently attracted 10 million new users in less than a month, bringing its total user base to 40 million.
