DeFi
PayPal’s PYUSD Supply Increases 90% After Solana Expansion, Market Cap Hits $500M
PayPal PYUSD stablecoin supply increased by 90% after extended At Solana blockchain in May, with its market capitalization surpassing the $500 million mark as of July 8.
According to DeFillama dataThe total supply of PYUSD on Solana and Ethereum reached around $520 million on July 8.
Solana Drives PYUSD Growth
A breakdown of its offering between the two chains shows that $399 million, or 77% of the total offering, is on Ethereumwhile $118.65 million, or 23% of its supply, is on Solana.
However, a deeper dive into the data shows that its adoption on the Solana network is on the rise, with the supply on the network increasing by around 58% over the past week. In contrast, PYUSD’s supply on Ethereum has dropped by 6% over the same period.
Unsurprisingly, increased supply and improved adoption have also boosted its trading volume. Data According to Visa and blockchain analytics platform Allium Labs, weekly PYUSD trading volume surpassed $500 million late last month, compared to previous averages of around $150 million.
This rapid growth has prompted Solana developer Paul Fidika to describe PYUSD as an “unexpected success on Solana” because it strengthens the blockchain network “as a legitimate financial alternative.” added:
“[PYUSD] makes Coinbase and Circle useless; their only use is a fee bridge between bank accounts <-> cryptographic addresses.
Solana-based DeFi protocols adopt PYUSD
Market observers have noted that PYUSD’s integration with major Solana-based DeFi protocols is helping it build an ecosystem on the blockchain network.
Solana has one of the the largest thriving DeFi ecosystemswith the total value of fixed assets placing it among the top five in the sector, according to DeFillama data.
The stablecoin is available on major Solana-based DEXs Jupiter And Orcawhich would launch new products aimed at encouraging its use. Additionally, the stablecoin has also been integrated into Solana’s largest lending and liquidity protocol, Kamino Finance.
Tom Wan, an analyst at 21shares, noted that the DeFi platform offers an annual percentage yield (APY) of 23% on PYUSD, which has proven attractive to investors looking for yield opportunities.
He declared:
“A lot of the success can be attributed to Kamino Finance. Over 38% of the supply was lent on Kamino with an APY of 23%. This is also a significant milestone for the adoption of token scaling in DeFi.”