PayPal USD (PYUSD) market cap leaped by 150% since its expansion to Solana on May 29, with the stablecoin’s total value now sitting at $684 million, based on DefiLlama data.
Notably, the usage of PYUSD is practically evenly distributed between Solana and Ethereum, as both blockchains show 48.32% and 51.68% dominance, respectively.
This significant movement by PYUSD within Solana’s DeFi ecosystem could be tied to the incentives campaign among its applications, such as Kamino. PayPal’s stablecoin has the highest annual percentage yield (APY) to be supplied as collateral on the Solana-based money market and the smallest borrow rate.
However, despite its growth, PYUSD is still far away from its more established peers, such as Tether USD (USDT) and USD Coin (USDC). USDC dominates 70.5% of Solana’s stablecoin total market value, while USDT rakes up 20%. PYUSD comes in third, with nearly 9% dominance.
Despite its absolute dominance within the Solana ecosystem, USDC represents just 20.5% of the total market cap among stablecoins, more than three times less than USDT’s 69.6% dominance.
USDT recently surpassed $115 billion in market cap, with Tether’s CEO Paolo Ardoino stating that the company is looking to enlarge its compliance team to keep building.
Moreover, in a note sent to the press, Ardoino added:
“USDT’s recent surge to a $115 billion market cap underscores its increasing adoption as the ‘digital dollar of choice’ for a wide range of transactions and use cases beyond just cryptocurrency trading. We’re seeing a shift in how digital assets are used, with USDT increasingly serving as an alternative to traditional savings and checking accounts, particularly in emerging markets grappling with currency devaluation.”
According to Tether’s CEO, people worldwide understand and trust the stability of the dollar, and USDT offers a “solid digital representation” of it.
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