In a landmark moment for the digital payment firm’s crypto venture, PayPal’s PYUSD stablecoin has officially reached a $1 billion market cap. Indeed, its surge in value is attributed by some to its expansion onto the Solana network. After starting off slow, its move saw a massive activity boost.
The stablecoin debuted in 2023 as an exclusive to the Ethereum network. Yet, they decided to expand in a move that paid dividends. Moreover, the company offered increased incentives to allow greater competition for the stablecoin that hadn’t lived up to the anticipation that came with its launch.
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PYUSD Stablecoin Thrives on Solana, Hits $1 Billion Market Cap
Throughout 2024, traditional finance entities have sought increased exposure to the crypto market. From $10 trillion asset manager BlackRock to Mastercard, that has been undeniable. Yet, one of the most interesting was PayPal. The digital payment service sought to compete in a rather unprecedented way that is paying off now.
Although the arrival of PayPal’s PYUSD stablecoin was rather slow at the start, it has officially hit a $1 billion market cap, according to CoinMarketCap. The Paxos-issued asset has doubled its supply in the last two months. Moreover, it has seen increased activity derived from its expansion to Solana.
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Solana’s popularity allowed PYUSD to curtail an overall market downturn. Indeed, the stablecoin saw user activity skyrocket during the summer. In July, monthly active wallet addresses reached the 25,000 level. That is a notable increase from its 9,400 figure in MAt, according to Visa analytics.
The arrival of PYUSD was looked at as a game changer. Yet, it didn’t have the initial impact many hoped. Although it was unable to compete with Circle’s USDC and Tether’s USDT, it has certainly begun to carve out its own place in the crypto market. With Solana continuing to grow, that position should also expand and solidify.