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.
According to CoinGecko, PYUSD’s supply has grown by more than $300 million, or 45%, in the past month, making it the fastest-growing stablecoin. Analysts link PYUSD’s growth to its integration with the Solana blockchain, which has offered significant incentives.
PayPal initially launched PYUSD on Ethereum in August 2023. The stablecoin saw steady growth during its first 10 months, but its adoption soared after the expansion to Solana in May 2024. High yields have driven PYUSD’s balance on Solana to surpass that on Ethereum.
Some market observers have expressed skepticism about the sustainability of this growth, citing high-yield histories like Terra's failed UST stablecoin. However, PYUSD differs as it is backed by the dollar.
The rapid growth of PYUSD on Solana has also led to wider adoption on exchanges, with Bybit now supporting PYUSD deposits and withdrawals on the Solana network.
