Coinspeaker PayPal PYUSD Stablecoin Supply Shoots 90% after Integration with Solana DeFi Protocol
Ever since the PayPal PYUSD stablecoin expanded to the Solana blockchain in May, its supply in the market has shot up by 90% with its market cap surpassing $500 million as of July 8. As per the data on DeFiLlama, the PYUSD total supply on the Solana and Ethereum blockchains shows $520 million as of now.
A further breakdown of the stablecoin across two chains shows that 77% of its total supply i.e. $399 million is currently on Ethereum. The rest 23% of its total supply of $118 million is on the Solana blockchain network.
A further analysis of the data shows that the adoption of PYUSD stablecoin on the Solana blockchain is rising significantly. In the past week, the stablecoin’s supply on Solana has surged by a staggering 58%. On the other hand, the PYUSD supply on Ethereum has dropped by 6% on Ethereum during the same time.
Additionally, the growing supply and increased adoption have also boosted the trading volume for the PYUSD stablecoin. As per the data from Visa and blockchain analytics platform Allium Labs, the PYUSD weekly transaction volumes have exceeded $500 million by the end of the last month. To give context, this is more than 3x of the $150 million weekly trading volumes seen previously.
Solana developer Paul Fidika described this rapid growth of PYUSD stablecoin as the “sleeper hit on Solana” as it bolsters the blockchain network “as a legit financial alternative”. He added:
“[PYUSD] makes Coinbase and Circle irrelevant; their only utility is a fee-charge bridge between bank-accounts <-> crypto addresses.”
DeFi Protocols on Solana Embrace PYUSD Stablecoin
PYUSD’s integration with prominent Solana-based DeFi protocols is pivotal in establishing its ecosystem on the blockchain network, as highlighted by market observers.
Solana boasts one of the most robust DeFi ecosystems, ranking among the top five in total assets locked according to DeFillama data.
Moreover, PYUSD is actively traded on leading Solana-based decentralized exchanges (DEXs) such as Jupiter and Orca, both of which are innovating new products to promote its adoption. Additionally, the stablecoin has been integrated into Kamino Finance, Solana’s largest lending and liquidity protocol, further enhancing its utility within the ecosystem.
21Shares analyst Tom Wan noted that the DeFi platform offers a 23% annual percentage yield (APY) on PYUSD. As a result, PYUSD has been attracting more users seeking yield opportunities.
“A lot of the success can be attributed to Kamino Finance. Over 38% of the supply has been lent on Kamino with a 23% APY. This is also a huge step for the adoption of token extension in DeFi,” Wan stated.
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PayPal PYUSD Stablecoin Supply Shoots 90% after Integration with Solana DeFi Protocol
