PYUSD, the Stablecoin Issued by PayPal, Now Boasts a Ten-Figure Market Cap

Data from CoinGecko shows PYUSD's market cap pushing past $1 billion on Aug. 24, with the milestone coming roughly 12 months after the token's launch.

PayPal's stablecoin, PYUSD, has hit a market capitalization of $1 billion, making it the sixth-largest stablecoin and the fifth-fastest to reach the milestone.

According to data from CoinGecko, PYUSD's market cap crossed the $1 billion mark on August 24, about 12 months after the token was launched in August last year. The stablecoin ranks behind Ethena USDe (USDE), which has a market cap of $2.94 billion, and above Tron's USDD token, which is capitalized at $747.3 million.

The rapid growth of PYUSD can be largely attributed to its deployment on Solana, which took place on May 29. At the time, PYUSD's market cap was $399 million.

Data from SolanaScan shows that Solana now accounts for 64% of PayPal USD's $1.01 billion market cap, with $647 million. PYUSD ranks as the third-largest stablecoin on the network, behind USD Coin (USDC), which has a Solana market cap of $2.55 billion, and Tether (USDT), which is present on Solana with $723.5 million.

Among Solana stablecoins, PYUSD is now the fastest growing, having added $228 million to its market cap over the past seven days. This compares to an addition of $27 million to its Solana market cap for USDC. At the current rates of growth, PYUSD will soon overtake USDT as the second-largest stablecoin on Solana.

Several of Solana's top DeFi protocols have offered attractive incentives for users to jump on the PYUSD bandwagon. On July 10, Kamino, a money market protocol, doubled its incentives for PYUSD deposits. The protocol currently hosts $432.6 million in PYUSD, with depositors earning boosted rewards in the form of 1.2 million PYUSD weekly — which currently equates to an APY of nearly 14.5%. The Kamino pool has a supply cap of 600 million PYUSD.

Two weeks later, MarginFi, a rival lending protocol, launched support for PYUSD with a large incentive campaign. The protocol's $50 million PYUSD pool is currently maxed out, with depositors enjoying a boosted APY of 18.5% in the form of PYUSD.

However, PYUSD borrowers are paying 3.28% at a 5.31% utilization ratio on Kamino and 1.54% at 4% utilization on MarginFi, which raises questions about whether PYUSD can sustain its growth on Solana without the incentives being offered by the network's top lending protocols.

On August 20, the popular web3 analyst, Alpha Pls, estimated that Kamino is earning annualized revenue of $17.4 million, which suggests that the protocol will not be able to support the ongoing rewards boost for much longer.

The above is the detailed content of PYUSD, the Stablecoin Issued by PayPal, Now Boasts a Ten-Figure Market Cap. For more information, please follow other related articles on the PHP Chinese website!