PayPal’s stablecoin, PYUSD, has just hit a major milestone, reaching a $1 billion market cap. This impressive achievement is thanks to a game-changing shift to the Solana blockchain and a wave of new incentives.
How does Solana help PayPal?
Originally launched on Ethereum in August 2023, PYUSD faced challenges in gaining momentum. The token’s early performance on Ethereum was underwhelming, falling short of expectations. However, PayPal’s decision to expand PYUSD to the Solana blockchain at the end of May 2024 proved to be a game-changer.
Solana’s reputation for fast and low-cost transactions provided the ideal environment for PYUSD’s growth. Within just three months of its launch on Solana, the token’s supply skyrocketed to $650 million, surpassing its supply on Ethereum.
A major driver of PYUSD’s recent success has been the introduction of generous rewards through decentralized finance (DeFi) protocols on Solana. Platforms like Kamino, Drift, and Marginfi began offering attractive yields for PYUSD deposits, drawing in a wave of new users and boosting overall activity.
This surge in incentives is reflected in the growth of active PYUSD wallet addresses, which jumped from 9,400 in May to over 25,000 in July. This sharp rise indicates a significant boost in user engagement and interest.
With its market cap now exceeding $1 billion, PYUSD has marked a significant achievement for PayPal in the digital asset space. The success of PYUSD highlights how effective blockchain partnerships and DeFi incentives can drive growth and adoption in the cryptocurrency market.
Featured image credit: Eray Eliaçık/Bing
