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.
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.
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.
Frequently Asked Questions (FAQs) about PYUSD Stablecoin
What is the main focus of the article?
How has PYUSD’s supply changed since its launch?
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