PayPal’s U.S. dollar-pegged stablecoin, PYUSD, has experienced notable growth since its inception, with its supply on the Solana blockchain recently surpassing that on Ethereum Blockchain. This milestone reflects shifting dynamics in the stablecoin market, as different blockchain networks compete for dominance in digital transactions.
The stablecoin was first launched on the Ethereum network in August 2023, through a collaboration with custodian firm Paxos. Initially, PYUSD showed strong performance on Ethereum, with its supply reaching 230 million by the end of 2023. However, as the stablecoin market expanded, PayPal introduced PYUSD on the Solana network in May 2024.
Overtakes Ethereum Within Months
PYUSD has gained popularity quickly since its inception on Solana; as of right now, there are more than 391 million tokens with a market of $391,887,141 to be exact at the time of writing available on Solana Blockchain, compared to just 357 million on Ethereum solana, as per the data from Solscan and Etherscan respectively.
Given that Ethereum has historically been the most popular stablecoin platform, this development is noteworthy. The change may be ascribed to Solana’s appeal to both consumers and developers due to its quicker transaction times and cheaper fees.
Since its inception, the total supply of PYUSD across both networks has more than tripled, surpassing 733 million tokens. As a result, PayPal now ranks among the biggest issuers of centralised stablecoins, behind industry titans like First Digital (FUSD), Circle (USDC), and Tether (USDT).
The variations in supply between Ethereum and Solana might also indicate how differently users engage and interact with the stablecoin on these platforms. The slower rise of PYUSD on this network may have been caused by Ethereum, despite being a pioneering blockchain, having issues with high fuel fees and network congestion.
Is Solana the Next Ethereum?
The fact that PYUSD is doing well on Solana further highlights the blockchain’s expanding significance within the larger cryptocurrency ecosystem. Well-known for its scalability and fast throughput, Solana has been drawing a wide range of projects, especially in the cryptocurrency and DeFi industries.
In conclusion, the quantity of PayPal’s PYUSD stablecoin on Solana has surpassed that of Ethereum, marking a noteworthy milestone. This change is indicative of larger developments in the cryptocurrency space, as more recent and effective blockchains, such as Solana, are overtaking more seasoned ones, such as Ethereum.
Stablecoins’ continued significance to the digital economy will probably lead to more rivalry amongst blockchain networks, which will give consumers more options and advantages in the decentralized financial sector.
Also read
Solana Sees Significant Price Surge Amid ETF Expectations
Brazilian Securities Regulator Approves First Solana Spot ETF, Price Surges