PYUSD, the stablecoin developed by PayPal, the $72 billion financial services giant, is back on the map with its circulating supply revisiting its all-time high of $1 billion.
The stablecoin is having a strong year, surging to a $1.01 billion market capitalization from a local low of $498 million on January 1. PYUSD now boasts a valuation equivalent to its previous all-time high, set in August 2024.
PYUSD’s strong growth last summer may have been unsustainable due to the generous incentives in the Solana DeFi ecosystem for using PYUSD, suggesting a more organic growth trajectory this time around.
Ethereum is the dominant blockchain in terms of stablecoin AUM, with $125 billion, while Solana holds less than 10% of that, with $11 billion. However, demand for PYUSD on Solana became so inflated that for a brief period in August 2024, the PYUSD supply on Solana exceeded the PYUSD supply on Ethereum.
PYUSD’s growth comes as stablecoins continue to solidify themselves as one of the most dominant products in crypto, shown by the total market capitalization’s growth over the last year, as well as the success of Circle’s IPO.
