Since expanding to Solana on May 29, PayPal USD (PYUSD) has experienced a dramatic 150% increase in market cap. The stablecoin’s total value now stands at $684 million, as reported by DefiLlama.
Distribution of PYUSD Usage
The distribution of PYUSD usage between Solana and Ethereum is nearly balanced. On Solana, PYUSD holds 48.32% of the market, while Ethereum accounts for 51.68%. This near-equal split highlights the stablecoin’s growing influence across both blockchains.
Influence of Incentives on PYUSD’s Growth
PYUSD’s notable growth within Solana’s DeFi ecosystem is likely linked to ongoing incentive campaigns, such as those by Kamino. On the Solana-based money market, PayPal’s stablecoin offers the highest annual percentage yield (APY) as collateral and features the lowest borrowing rates.
PYUSD Compared to Established Peers
Despite its progress, PYUSD remains behind more established stablecoins like Tether USD (USDT) and USD Coin (USDC). USDC commands 70.5% of Solana’s stablecoin market value, while USDT holds 20%. PYUSD ranks third with approximately 9% market dominance.
USDT’s Dominance and Future Plans
USDC, despite its leading position in Solana, only represents 20.5% of the total stablecoin market cap, which is significantly less than USDT’s 69.6% dominance. USDT recently surpassed a $115 billion market cap. Tether’s CEO, Paolo Ardoino, indicated plans to expand the company’s compliance team to support growth.
CEO Insights on USDT’s Growth
In a recent press release, Ardoino commented:
“USDT’s recent rise to a $115 billion market cap reflects its growing role as the preferred ‘digital dollar’ for a variety of transactions and applications beyond cryptocurrency trading. We are witnessing a shift in digital asset utilization, with USDT increasingly serving as an alternative to traditional savings and checking accounts, especially in emerging markets facing currency devaluation.”
Ardoino emphasized that global trust in the stability of the dollar underpins the growing acceptance of USDT as a reliable digital equivalent.
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