PayPal Stablecoin Skyrockets with $1 Billion Marketcap

Bittime - PayPal, one of the world's largest fintech companies, has long been preparing to adopt the latest technology. This is related to its efforts to embrace the future of digital finance. 

One of his big moves was launching a stablecoin called PayPal USD (PYUSD). After a less than encouraging start, PYUSD is now starting to show its teeth by recording a market capitalization that exceeds $1 billion (around Rp. 15.5 trillion). 

So, what actually happened to PYUSD? Why has this stablecoin skyrocketed with a market cap reaching $1 billion? Check out this article to find out!

PayPal's Big Hopes on PYUSD

When PayPal first launched PYUSD, it had high hopes for this stablecoin. Dan Schulman, President and CEO of PayPal, has stated that the shift towards digital assets requires instruments that are stable, digital, and linked to fiat currencies such as the US dollar. 

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In other words, PayPal sees PYUSD as a bridge between the world of digital currencies and conventional currencies. PYUSD was launched on the Ethereum network as an ERC-20 token, which means it is compatible with the broad Ethereum ecosystem.

However, these high hopes did not immediately come true. Although initially greeted with enthusiasm, PYUSD did not gain the desired momentum on the Ethereum network. 

Many crypto enthusiasts seemed reluctant to adopt PYUSD, and the token was almost forgotten amidst intense competition in the world of stablecoins.

PayPal Expands PYUSD Reach to Solana Network

However, things changed when PayPal expanded PYUSD's reach to the Solana network in May. Solana is known for its speed and lower transaction fees compared to Ethereum, and this is a breath of fresh air for PYUSD. 

In just three months, the supply of PYUSD on the Solana network soared to $650 million (Rp. 10,075 trillion). According to data from DefiLlama, PYUSD supply on Solana grew by 171% in just the last month. 

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This makes it one of the fastest growing stablecoins on the platform. In fact, PYUSD is now approaching Tether’s USDT, which is one of the largest stablecoins in the world, in terms of adoption on the Solana network.

However, although PYUSD growth looks promising, there are several important questions that need to be answered. First, is this growth sustainable? So far, PYUSD's success has been largely driven by incentives provided by PayPal. However, this incentive certainly won't last forever. 

What will happen when those incentives stop? Will users still be interested in keeping and using PYUSD?

In addition, competition in the world of stablecoins is fierce. PYUSD is not alone in facing this challenging market. Stablecoins like Circle's USDC and Tether's USDT have long dominated the market with large capitalization and widespread adoption. 

PYUSD Must Compete with Other Stablecoins

Although PYUSD managed to steal the spotlight on the Solana network, its journey to truly compete with the stablecoin giants is still long and full of challenges.

In conclusion, although PYUSD shows great potential especially after its expansion into Solana, the stability and sustainability of its growth is still a big question mark. 

PayPal must continue to innovate and adapt if it wants to maintain and expand its market share in the increasingly competitive world of stablecoins. PYUSD still has a long way to go. 

Only time will tell whether this stablecoin is able to survive and compete amidst tough competition with other big players.

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To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn How to Buy Crypto on Bittime.

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