PayPal’s PYUSD Stablecoin Expansion on Solana Blockchain
PayPal’s decision to expand its PYUSD stablecoin to the Solana blockchain has proven to be very successful. The digital asset currently ranks among the six largest stablecoins, with its supply quietly approaching $1 billion.
PYUSD Supply Surge on Solana
Analysts have linked the explosive growth of PYUSD to its integration with the Solana blockchain. Since its launch on Solana in May 2024, the supply of PYUSD has increased by over $300 million (45%) in just one month, reaching close to $820 million. This growth makes PYUSD the fastest-growing stablecoin in the market.
The success of PYUSD on Solana is attributed to the attractive incentives offered to users of Solana-based decentralized finance protocols such as Camino and Drift. These platforms provide generous rewards, with stablecoin deposits yielding annual returns of up to 20%.
Comparison with Other Stablecoins
Market observers have raised concerns about the sustainability of high-yield stablecoins, citing past failures like Terra’s algorithmic stablecoin UST. However, PYUSD sets itself apart by being backed by U.S. dollars, ensuring that each token issued is fully backed by reserves.
With PYUSD balances on Solana surpassing those on Ethereum due to higher yields, DeFiRama data shows that Solana’s PYUSD balance stands at $462 million, exceeding Ethereum’s $366 million. This makes PYUSD the third-largest stablecoin on Solana, trailing only Circle’s USDC and Tether’s USDT.
Widespread Adoption and Exchange Support
The rapid growth of PYUSD on Solana has led to its widespread adoption on exchanges. Bybit, one of the top three cryptocurrency exchanges, now supports PYUSD deposits and withdrawals on the Solana network. Bybit recently reached 40 million users, adding 10 million new users in less than a month.
