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PayPal’s PYUSD supply surges 90% after Solana expansion, market cap hits $500 million

PayPal’s stablecoin PYUSD has undergone significant growth, with its supply increasing by 90% after expanding to the Solana blockchain. As of July 8, PYUSD’s market capitalization has exceeded $500 million. Data from DeFillama reveals that PYUSD’s total supply on Solana and Ethereum reached around $520 million on that date.

Of the total supply, $399 million (77%) is on Ethereum, while $118.65 million (23%) resides on Solana. However, Solana has witnessed a rise in PYUSD adoption, experiencing a 58% increase in supply over the past week. In contrast, PYUSD supply on Ethereum dropped by 6% during the same period.

The increased supply and improved adoption have also resulted in higher trading volume. According to Visa and Allium Labs, PYUSD’s weekly transaction volume exceeded $500 million at the end of the previous month, up from an average of around $150 million.

Solana developer Paul Fidika commends PYUSD for its contribution to the Solana network, stating that it strengthens the blockchain as a legitimate financial alternative. He even claims that PYUSD renders platforms like Coinbase and Circle irrelevant, with their sole utility being a fee-charge bridge between bank accounts and crypto addresses.

PYUSD’s integration with leading Solana-based decentralized finance (DeFi) protocols has helped it establish an ecosystem on the blockchain network. Solana boasts one of the largest thriving DeFi ecosystems, with its total locked value ranking among the industry’s top five, based on DeFillama data.

The stablecoin is available on major Solana-based decentralized exchanges (DEXs) Jupiter and Orca, which are introducing new products aimed at incentivizing its use. Moreover, PYUSD has been integrated into Solana’s largest lending and liquidity protocol, Kamino Finance.

Analysts highlight that Kamino Finance’s 23% annual percentage yield (APY) on PYUSD has attracted investors searching for yield opportunities. Over 38% of the supply has been lent on Kamino, signifying substantial success and progress in the adoption of token extension in DeFi, according to Tom Wan, an analyst at 21shares.