PayPal’s stablecoin PYUSD has witnessed a staggering increase in market capitalization, now exceeding $290 million. The Block’s price page indicates that the market cap has surged over five-fold from its initial value.
At the end of August, PYUSD’s total supply stood at 43.3 million, with Paxos holding 90% of the supply in custody, highlighting a concentrated distribution. However, recent data shows that PYUSD has made significant strides, particularly in the past month, with a 70% increase in market cap, reaching $293 million, positioning PayPal among the top ten stablecoin issuers.
Leading the stablecoin niche is Tether USD, boasting a market capitalization of over $94 billion. PayPal’s PYUSD has found adoption on centralized exchanges such as Crypto.com and Kraken, along with integration into decentralized finance (DeFi) protocols, contributing to its notable growth.
A noteworthy shift in PYUSD’s distribution is evident, with Crypto.com now holding the largest portion, representing 38.7% of the total supply. Other major holders include DeFiance Capital, Curve, Kraken, and Paxos, according to on-chain data provided by Nansen.
PayPal’s PYUSD Liquidity Pool On Curve Hits $135M
The stablecoin has also found its way into DeFi protocols, with a new liquidity pool called FRAXPYUSD on Curve, locking a total value of $135 million since its December 27 launch. This pool, currently the third-largest on Curve, comprises PYUSD from Paxos and Frax Finance’s collateralized algorithmic stablecoin, FRAX.
The imbalance in liquidity, with FRAX accounting for over 80%, hasn’t deterred the pool’s success, seeing an average daily trading volume of $5.5 million. The community of decentralized lending protocol Aave is considering integrating PYUSD, with an ongoing governance vote showing overwhelming support, as 99.98% of participating AAVE token holders favor the move. This follows Curve’s decision in December to host PYUSD, further solidifying the stablecoin’s presence in the DeFi space.
However, with PYUSD’s growing market capitalization, increased adoption on various platforms, and integration into DeFi protocols, PayPal’s stablecoin is making significant strides in the evolving landscape of digital assets.
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