PYUSD Supply Grows on Solana Blockchain

PayPal’s Success with PYUSD Stablecoin on Solana Blockchain

PayPal’s decision to expand its PYUSD stablecoin to the Solana blockchain has proven to be very successful. The digital asset is now among the six largest stablecoins, with its supply rapidly approaching $1 billion.

PYUSD Supply Growth on Solana

According to CoinGecko, the supply of PYUSD has increased by over $300 million (45%) in the past month, reaching close to $820 million. This makes PYUSD the fastest-growing stablecoin in its category.

Learn More: The 7 Best Cryptocurrency Platforms to Buy PayPal Stablecoin (PYUSD)

The integration of PYUSD with the Solana blockchain has been key to its rapid growth. Initially launched on Ethereum in August 2023, PYUSD saw steady growth until its expansion to Solana in May 2024, which led to a surge in adoption.

Attractive Incentives on Solana

PYUSD’s success on Solana can be attributed to the attractive incentives offered to users of Solana-based decentralized finance platforms such as Camino and Drift. These platforms provide generous rewards, with annual returns on stablecoin deposits reaching up to 20%.

Despite concerns about the sustainability of high-yielding stablecoins, PYUSD’s backing by U.S. dollars sets it apart from other assets. Each PYUSD token is backed by an equal amount of reserves, ensuring stability.

Widespread Adoption and Growth

On Solana, PYUSD balances surpass Ethereum due to higher yields, with a current balance of $462 million compared to Ethereum’s $366 million. This makes PYUSD the third-largest stablecoin on Solana, following USDC and USDT.

Furthermore, the rapid growth of PYUSD on Solana has led to increased adoption on exchanges like Bybit, which now supports PYUSD deposits and withdrawals on the Solana network. Bybit recently added 10 million new users in less than a month, reaching a total of 40 million users.