PayPal’s PYUSD Rises to Third-Largest Stablecoin on Solana

PayPal’s decision to extend its PYUSD stablecoin to the Solana blockchain is proving highly successful.

The digital asset now ranks among the top six stablecoins, with its supply quietly approaching the $1 billion milestone.

PYUSD Supply Grows by Over $300 Million in a Month

According to CoinGecko, PYUSD’s supply has grown by more than $300 million, or 45%, in the past month. This makes it the fastest-growing stablecoin among its peers, with a current supply close to $820 million.

Read more: 7 Best Crypto Platforms To Buy PayPal Stablecoin (PYUSD)

Analysts link PYUSD’s growth to its integration with the Solana blockchain. PayPal initially launched PYUSD on Ethereum in August 2023. While the stablecoin saw steady growth during its first 10 months, its adoption soared after the expansion to Solana in May 2024.

PYUSD’s success on Solana has been linked to the attractive incentives for users of Solana-based DeFi protocols like Kamino and Drift. These platforms provide users with significant rewards, offering nearly 20% annual returns for depositing the stablecoin.

Some market observers have expressed skepticism about the sustainability of this approach, citing the industry’s history with high-yield stablecoins like Terra’s failed algorithmic UST stablecoin. However, PYUSD differs from UST because it is backed by the dollar—meaning each PYUSD token issued is supported by an equivalent dollar in reserve.

Nevertheless, the high yields have driven PYUSD’s balance on Solana to surpass that on Ethereum. Data from DeFiLlama shows that PYUSD on Solana now exceeds $462 million, compared to around $366 million on Ethereum. This makes PayPal-backed assets the third-largest stablecoin on Solana, following Circle’s USDC and Tether’s USDT.

Read more: How To Buy PayPal Stablecoin (PYUSD)

Meanwhile, the rapid growth of PYUSD on Solana has also led to wider adoption on exchanges. Bybit, one of the top three cryptocurrency exchanges, now supports PYUSD deposits and withdrawals on the Solana network. Bybit recently reached 40 million users, adding 10 million new users in less than a month.