Is there hope for the future? Stablecoin market cap reaches a new high in two years, with the market cap of PYUSD tripling in a single month!

DeFiLlama data shows that the global stablecoin market has reached a market capitalization of $170 billion, with USDT and USDC dominating the majority share. The stablecoin PYUSD issued by PayPal and Paxos has seen rapid growth within the Solana ecosystem, surpassing a market capitalization of $1 billion.

Stablecoin Market Cap Surpasses $170 Billion

According to data, the market cap of stablecoins, excluding algorithmic stablecoins, has surpassed $170 billion, exceeding the previous all-time high at the beginning of 2022.

Among them, Tether's USDT has a market cap of $118.2 billion, holding nearly 70% of the market share; while Circle's USDC has $34.1 billion, accounting for 20% of the market share; other stablecoins like DAI and USDE have market caps of $5.2 billion and $2.9 billion respectively.

It is evident that the increasing demand has further driven the surge and expansion of stablecoin market cap, with new external funds continuously flowing into the crypto market.

Tether Expands into the UAE, to Issue Stablecoin Pegged to AED

Previously, CryptoQuant CEO Ki Young Ju also mentioned that the liquidity and momentum of stablecoins would be one of the factors to evaluate the market conditions, and readers may look forward to the future developments.

PYUSD Market Cap Exceeds $1 Billion

Meanwhile, PYUSD, a stablecoin launched jointly by payment provider PayPal and stablecoin issuer Paxos, backed 1:1 by the US dollar reserve, has become one of the most significantly growing stablecoin projects.

As of today, the circulation of PYUSD has exceeded $1 billion, making it the sixth largest stablecoin in the global market, with a market cap growing more than three times in a month.

Solana Leads PYUSD

The remarkable performance of PYUSD is clearly attributed to Solana, as the circulation of PYUSD on Solana has surpassed that on Ethereum two months after the stablecoin was launched on the network, with a ratio of 2:1 currently.

Tom Wan, Business Development Assistant at digital asset investment firm 21.co, attributes the success of PYUSD to its integration with the DeFi ecosystem and generous incentives:

Incentives have played a significant role in the recent growth of PYUSD.

Reportedly, PayPal provides weekly rewards worth hundreds of thousands of dollars in PYUSD to lending protocols Kamino and DEX Drift on Solana, offering users on these protocols annualized yields of 13% to 16%, even higher than Aave's 3.5% for PYUSD on Ethereum.

Solana Derivatives Trading Platform Drift Introduces Prediction Market BET, Can Holding Bets Generate Returns?

Actively Expanding PYUSD Adoption

At the same time, PayPal is directing its stablecoin development strategy towards expanding the accessibility of PYUSD, including collaborating with crypto custodian Anchorage Digital to launch incentive programs and simplifying the coin purchasing process in partnership with MoonPay here.

Stablecoins also earn interest? PayPal and Anchorage Launch PYUSD Incentive Program

However, the market cap of PYUSD still lags far behind USDT and USDC, with market caps of $118 billion and $35 billion respectively.