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PYUSD rises 57% as it competes in stablecoin market

PYUSD rises 57% as it competes in stablecoin market

GrafaGrafa2024/10/21 00:50
By:Isaac Francis

PayPal's PYUSD (CRYPTO:PYUSD) has gained significant traction in the stablecoin market, experiencing a 57% rise in dominance during the third quarter of 2024, according to Hashdex Research.

Although still smaller compared to leading stablecoins USDT (CRYPTO:USDT) and USDC (CRYPTO:USDC), PayPal’s stablecoin is emerging as a strong competitor.

Stablecoins such as USDT and USDC continued to expand their market dominance in Q3, with both increasing their shares by 1% and 5%, respectively.

Despite their established positions, PYUSD, which launched in August 2023, has quickly gained momentum.

Issued by Paxos Trust Company and backed by U.S. dollar reserves like Treasuries and cash equivalents, PYUSD offers a 1:1 exchange rate against the U.S. dollar and is available for purchase on PayPal and Venmo.

In just 383 days, PYUSD achieved a $1 billion market cap, significantly outpacing its competitors in terms of growth speed.

According to Hashdex Research, PYUSD reached this milestone nearly twice as fast as USDC and three times faster than USDT.

Following its initial launch on Ethereum, PYUSD expanded to the Solana (CRYPTO:SOL) blockchain earlier this year, further enhancing its market reach.

Hashdex Research indicates that institutional adoption of PYUSD could further boost its growth in the fourth quarter of 2024 and into 2025.

The report suggests, “PYUSD is gaining traction and could continue to capture more market share as its distribution increases.”

The appeal of stablecoins is growing within the fintech industry.

Other companies, such as UK-based Revolut, are exploring the creation of their own stablecoins, while Ripple plans to launch RLUSD (CRYPTO:RLUSD), a dollar-backed stablecoin.

Additionally, J.P. Morgan has developed JPM Coin to enable real-time payments for institutional customers, signaling broader interest in stablecoin-based financial solutions.

At the time of writing, the PayPal USD price was $1.00.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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