PayPal’s PYUSD Stablecoin Soars 113%, Hitting a Record Supply of $2.54 Billion

The stablecoin market has witnessed a robust shift with the remarkable growth of PayPal’s PYUSD. Over the past month, PYUSD issuance has surged by 113%, setting a new benchmark of $2.54 billion in supply—equivalent to approximately 3.5 trillion South Korean won. Despite initial skepticism during its launch phase, PYUSD is steadily carving out its niche within the competitive stablecoin arena.

PYUSD Climbs to Seventh-Largest Stablecoin by Supply

Data from digital asset analytics firm Token Terminal, as of November 3, reveals that PYUSD is now the seventh-largest stablecoin by overall issuance. Out of the total $2.54 billion supply, $1.84 billion (approximately 2.6 trillion won) is circulating on Ethereum, with the remaining $624 million (approximately 878.7 billion won) deployed on Solana. Noteworthy performance metrics further underline PYUSD’s momentum: the stablecoin hit a single-day transaction high of $2 billion (approximately 2.8 trillion won) on October 26, and cumulative transfer volume has surpassed $60 billion (approximately 84.5 trillion won) to date. Additionally, wallet adoption is on the rise, as the number of PYUSD holders has surpassed 40,000, reflecting broadened user engagement.

Overcoming Early Criticism with Strategic Enhancements

When PYUSD launched, it faced significant criticism, with many analysts asserting that its practical utility was limited to PayPal’s and Venmo’s intertwined ecosystems, making its adoption prospects uncertain. To counter these concerns and appeal to a broader audience, PayPal introduced crucial updates, including support for external wallet transactions and non-custodial storage options. These upgrades align with key principles of decentralized finance (DeFi) and have played a pivotal role in bolstering confidence in PYUSD’s long-term utility.

Stablecoin Sector Expansion Supports PYUSD Growth

The timing of PYUSD’s surge coincides with broader trends in the rapidly expanding stablecoin market. Currently, the total market capitalization across all stablecoins has surpassed $300 billion (approximately 422.46 trillion won). Monthly stablecoin transaction volumes are hitting unprecedented levels, with recent estimates pointing to $3.27 trillion (approximately 4,604.8 trillion won) in processed trades. This broader market growth highlights the increasing demand for digital assets that aim to bridge the gap between cryptocurrency and traditional finance.

PYUSD’s Market Position: Progress Amidst Fierce Competition

Despite its notable growth, PYUSD remains a small player compared to market giants like Tether (USDT) and USD Coin (USDC), which collectively dominate the stablecoin landscape. Together, these two leaders account for an overwhelming 85% of total stablecoin issuance. As of now, USDT boasts a circulating supply of $176 billion (approximately 248 trillion won), while USDC’s issuance stands at $75.9 billion (approximately 107 trillion won). Against this backdrop, PYUSD currently holds just 0.84% of the market, a share that underscores both its progress and the challenges it faces in gaining a more competitive foothold.

Conclusion: PYUSD’s Path Forward in the Evolving Stablecoin Ecosystem

PayPal’s PYUSD has achieved significant milestones, with its supply doubling in just one month and adoption metrics trending upward. While its market share remains modest, strategic advancements such as expanded functionality and interoperability signal a commitment to growth and innovation. In a stablecoin market experiencing explosive demand and evolving dynamics, PYUSD is positioning itself as a noteworthy contender, laying the foundation for further expansion and utility in the years to come.