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Over the last month, the supply of Paypal’s $PYUSD stablecoin has seen a substantial increase, surging by over 72% from 167.83 million to 289.43 million $PYUSD. This significant growth has propelled the payment behemoth’s dollar-linked digital currency to become the tenth largest among all USD-anchored stablecoins.
Paypal’s Digital Currency $PYUSD Supply Skyrockets
Roughly five months have elapsed since the introduction of Paypal’s Ethereum-based stablecoin, $PYUSD. As of the end of August, the total supply of $PYUSD stood at 43.3 million, with the top 100 holders possessing 99.99%. However, the quantity of $PYUSD has since experienced a dramatic increase, soaring more than 568% to reach the current 289.43 million $PYUSD. In the past 30 days alone, from Dec. 10, 2023, to Jan. 10, 2024, the supply of $PYUSD has expanded by 72.4%.
Roughly 4,943 distinct addresses are currently holding $PYUSD, and the stablecoin has accomplished a cumulative 29,592 onchain transfers. In recent developments, $PYUSD has ascended to become the tenth-largest stablecoin by market value, narrowly trailing the market capitalization of pax dollar ($USDP). Notably, Paxos, the entity behind $USDP, collaborates with Paypal and serves as the primary issuer of the $PYUSD stablecoin. Rewind five months, and the scenario was different: Paxos stood as the top holder, with the leading 100 holders controlling 99.99% of $PYUSD’s supply.
The landscape has shifted, with the digital currency exchange Crypto.com emerging as the current largest holder of $PYUSD. Of the total 289 million tokens, Crypto.com possesses a substantial 112,201,306 $PYUSD, representing 38.76% of the entire stablecoin supply. Following close behind, Defiance Capital ranks as the second-largest holder, securing 39,121,862 $PYUSD, which accounts for 13.51% of the circulating coins. In third place stands Kraken, holding 31.92 million $PYUSD, while the decentralized finance platform Curve Finance occupies the fourth position with a holding of 24.95 million.
Paxos continues to hold a prominent position as the owner of the fifth-largest $PYUSD wallet, boasting 24.45 million. While $PYUSD ranks as the tenth largest stablecoin, it’s relatively modest when juxtaposed with behemoths like $USDC and $USDT. Yet, according to bluechip.org’s stablecoin evaluations, $PYUSD stands out with an A- rating, surpassing $USDC’s B+ and towering over $USDT’s D rating. Bluechip suggests that $PYUSD’s rating could be elevated from A- to A if Paypal either reveals the details of its reserve custodians and their respective holdings or demonstrates a stable, close peg for a continuous period of 180 days.
$PYUSD’s journey in the stablecoin market illustrates a notable evolution in the digital currency space. Its swift expansion and market presence mark a significant trend in the adoption and usage of stablecoins backed by financial incumbents. As $PYUSD forges ahead, it presents an interesting case study in the dynamics of stablecoin markets, reflecting the ever-changing landscape of fiat-backed tokens and their growing role in the financial ecosystem.
What do you think about $PYUSD’s growth since its launch and the supply increase over the past 30 days? Share your thoughts and opinions about this subject in the comments section below.