PayPals stable currency PYUSD It surpassed $1 billion in market cap on August 24, according to CoinGecko facts.
On an X (formerly Twitter) afterthe issuer of PYUSD Paxos celebrated this achievement and highlighted how quickly the stablecoin crossed the important milestone compared to its peers, USD Coin (USDC) And Tether USD (USDT).
Data from CoinGecko shows that it took PYUSD 351 days to cross the billion-dollar threshold, while USDC and USDT crossed the same level within 616 and 1024 days, respectively.
Notably, most of the PYUSD market cap is circulating on Solana, less than three months after PayPal decided on May 29 to expand the issuance of its stablecoin beyond Ethereum.
As on chain facts shows more than $647 million in PYUSD being staked on Solana, with approximately $430 million collateralized for loans on money market platform Kamino.
The significant amount of PYUSD allocated at Kamino can be explained by the high annual yield (APY) offered by the platform, currently on a 13.63% basis and 14.6% with bonuses.
The second largest application for PYUSD is the USDC/PYUSD liquidity pool on decentralized exchange Orca, which has $50.4 million locked up.
On Ethereum, most of the PYUSD is locked in the FRAX/PYUSD liquidity pool created on the decentralized exchange Curve Finance, which has been allocated $19.5 million.
Tough competition
Despite its rapid growth, the PYUSD still faces stiff competition both on Solana and the broader stablecoin market.
On a chain facts shows USDT has a $76 million lead over PYUSD on Solana. Still, this could soon be reversed as PayPal’s stablecoin has grown 171% over the past 30 days, while USDT has shrunk 1.35%.
Nevertheless, USDC is almost 4x larger than PYUSD in Solana’s ecosystem, with a value of $2.5 billion.
Across the broad stablecoin ecosystem, PYUSD ranks behind five other tokens in terms of market capitalization. USDT dominates the $162 billion sector, with a market cap of almost $118 billion.
USDC is the second largest stablecoin, approaching $35 billion. DAI ranks third, with a market size of over $5.1 billion, while First Digital USD has a market cap of $3.1 billion. Ethena USDe rounds out the group at $2.9 billion.