PayPal’s PYUSD supply surges 90% after Solana expansion, market cap hits $500 million Stablecoins 19 hours ago

PayPal’s PYUSD stablecoin supply has grown by 90% after it expanded to the Solana blockchain in May, with its market capitalization surpassing the $500 million mark as of July 8.According to DeFillama data, PYUSD’s total supply on Solana and Ethereum has reached approximately $520 million on July 8.A breakdown of its supply across the two chains shows that $399 million, representing 77% of the total supply, is on Ethereum, while $118.65 million, equivalent to 23% of its supply, is on Solana.However, further analysis of the data shows that its adoption on the Solana network is rising, with the supply on the network rising roughly 58% during the past week. In contrast, PYUSD supply on Ethereum dropped 6% during the same period.Unsurprisingly, the increased supply and improved adoption also boosted its trading volume. Data from Visa and blockchain analytics platform Allium Labs shows PYUSD’s weekly transaction volume exceeded $500 million at the end of last month, up from previous averages of around $150 million.This rapid growth prompted Solana developer Paul Fidika to describe PYUSD as a “sleeper hit on Solana” because 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.”Market observers noted that PYUSD’s integration with leading Solana-based DeFi protocols is helping it build an ecosystem on the blockchain network.Solana has one of the largest thriving DeFi ecosystems, with the total value of assets locked on it ranking among the top five in the industry, according to DeFillama data.The stablecoin is available on major Solana-based DEXs Jupiter and Orca, which are reportedly introducing new products designed to encourage its use. Furthermore, the stablecoin has also been integrated into Solana’s largest lending and liquidity protocol, Kamino Finance.Tom Wan, an analyst at 21shares, pointed out that the DeFi platform offers a 23% annual percentage yield (APY) on PYUSD, which has proven attractive to investors seeking yield opportunities.He stated:“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.”Oluwapelumi values Bitcoin’s potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting. Daily digest of top crypto stories and market insights. Never miss out.The company will match donations for the next 10 days.Bloomberg ETF analysts believe the odds of approval under the Biden administration are “near zero.”21Shares is the second major firm to file an application for a spot Solana ETF this week, and the third this month.Phantom Wallet users warned of fake app that resembles authentic version, resulting in significant financial losses.CryptoSlate’s latest report dives deep into Glassnode’s regional supply and price metrics to analyze their changes in the first half of the year.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.