Jamal Al-Farouq After Paypal announced the launch of its new stablecoin, data from the associated smart contract address indicated an initial supply of approximately 26.9 million PYUSD. In the 22 days that followed this announcement, the supply surged by more than 60%, reaching a total of 43.3 million PYUSD.
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Paypal’s Stablecoin Sees a 60% Jump in Supply Yet Lags Behind Major Stablecoin Contenders
In less than a month since its inception, Paypal’s stablecoin, PYUSD, has witnessed a remarkable 60% expansion in its circulating supply. As of the current data, the supply stands at 43.3 million PYUSD, distributed across about 346 unique wallet addresses.
However, this growth in supply belies a relatively low level of transactional activity. Since the stablecoin’s launch, only 1,462 transfers have been recorded. Furthermore, the contract address managed by Paxos holds a substantial 34.99 million PYUSD, constituting approximately 80.83% of the total circulating supply.
The second-largest PYUSD holding is also under Paxos’ treasury, containing 8.78% or 3.8 million PYUSD. The third and fourth-largest wallets are owned by Crypto.com, holding 2.79 million and 1,101,601 PYUSD respectively.
As of August 30, 2023, the top 100 wallet addresses hold an overwhelming 99.9% of all existing PYUSD tokens.
The fifth-largest PYUSD address, with a balance of 500,005 tokens, is currently unlabelled but has been linked to a Kraken deposit address. Meanwhile, the sixth-largest wallet is affiliated with Uniswap and holds 47,722 PYUSD.
It is evident that a vast majority of the PYUSD supply is concentrated within Paypal and, notably, Paxos, in addition to various exchanges and market makers. Collectively, the top 100 wallet addresses control nearly 100% of the total PYUSD supply.
Comparative Market Position: A Glimpse at PYUSD’s Market Valuation
Although PYUSD has experienced growth, it remains a minor player among the industry’s heavyweights. Currently ranking 24th among the top 50 stablecoins, its market position is akin to other similarly sized stablecoins such as magic internet money (MIM) and bob (BOB), each boasting a $49 million market capitalization.
Compared to the industry leader, Tether (USDT), which has a massive market capitalization of $82 billion, PYUSD accounts for an inconsequential 0.052%. Against the $26.12 billion valuation of USD Coin (USDC), PYUSD represents a modest 0.16% slice of the total market value.
Concluding Remarks
In recent weeks, Paypal’s venture into the stablecoin market has demonstrated growth in its supply. However, PYUSD has yet to match the level of market engagement, liquidity, and trading activities exhibited by leading stablecoins.
While the backing of a payments giant like Paypal lends some credibility and competitive advantage, PYUSD has a considerable distance to traverse before it can be considered a dominant force in the stablecoin landscape.
We invite you to share your insights and perspectives on Paypal’s entry into the stablecoin market and its recent performance in the comments section below.
Frequently Asked Questions (FAQs) about PYUSD Stablecoin
What is the main focus of the article?
The main focus of the article is to provide a comprehensive analysis of PYUSD, Paypal’s newly launched stablecoin. The article delves into its supply dynamics, wallet distribution, and market positioning relative to dominant stablecoins in the industry.
How has PYUSD’s supply changed since its launch?
Since its introduction, PYUSD’s supply has seen a 60% surge. It grew from an initial 26.9 million to 43.3 million in just 22 days following its announcement by Paypal.
Who are the primary holders of PYUSD?
The overwhelming majority of PYUSD is concentrated among a few key holders. The contract address managed by Paxos holds approximately 80.83% of the total supply. Paxos’ treasury ranks as the second-largest holder, followed by Crypto.com owning the third and fourth-largest wallets. The top 100 wallet addresses collectively control 99.9% of the total PYUSD supply.
How does PYUSD compare to other major stablecoins in market valuation?
PYUSD currently ranks 24th among the top 50 stablecoins by market valuation. It accounts for a mere 0.052% of Tether’s (USDT) $82 billion market capitalization and a modest 0.16% of USD Coin’s (USDC) $26.12 billion valuation.
What is the level of transactional activity for PYUSD?
PYUSD has recorded a relatively low number of transfers since its launch, with only 1,462 transactions. This indicates that despite its growth in supply, PYUSD has not garnered significant transactional activity in the market.
What challenges does PYUSD face in becoming a prominent stablecoin?
While PYUSD has shown supply growth, it falls considerably short of the market engagement, liquidity, and trading activities exhibited by leading stablecoins. Its limited presence signifies that there is still a considerable journey ahead for it to emerge as a prominent player among stablecoins.
What are the advantages for PYUSD, given it is backed by Paypal?
The primary advantage for PYUSD is the credibility and competitive advantage lent by Paypal, a well-established payments giant. However, despite this backing, PYUSD has yet to gain significant market traction compared to other dominant stablecoins.
More about PYUSD Stablecoin
- Paypal’s Official Announcement on PYUSD Launch
- Stablecoin Market Capitalization Rankings
- Paxos Company Profile
- Crypto.com Wallet Distribution
- Tether (USDT) Market Capitalization Data
- USD Coin (USDC) Valuation Metrics
- Detailed Transaction History of PYUSD
6 comments
Wow, never thought I’d see the day where Paypal jumps into stablecoins. But looks like they’ve got a long way to go. Seriously, just 1,462 transfers? What’s goin on here.
So PYUSD is backed by Paypal and still can’t match up to USDT or USDC? This is telling. Might be good for small-scale stuff but I’m not switching my portfolio anytime soon.
The concentration of PYUSD among top 100 wallets is a bit concerning. 99.9% Really? Sounds risky to me.
43.3 million in less than a month is not bad but then again, the market cap of the big boys is in billions. Paypal needs to up its game.
Interesting to see that Paxos manages such a big chunk of the PYUSD pie. nearly 81%! That’s a lot of control in few hands. What about decentralization?
good article, covers all the bases. Still, PYUSD has a lot to prove. Let’s see if Paypal can make it a strong contender. not holding my breath though.