PYUSD Market Cap Explodes: Triples to $3.8B in Just 90 Days

Stablecoin PYUSD just pulled off a growth spurt that would make a tech unicorn blush—its market cap tripled to $3.8 billion in a mere three months.

The Numbers Don't Lie

Forget gradual climbs. This was a vertical takeoff. The surge from its previous valuation to the new $3.8 billion benchmark signals a massive, rapid influx of capital and user adoption. It's the kind of move that turns heads on trading floors and in boardrooms alike.

What's Fueling the Frenzy?

While the raw data speaks for itself, the drivers are the real story. Look for institutional players parking cash, exchanges expanding support, and DeFi protocols integrating the asset for yield. In a landscape crowded with stablecoins, tripling your size means you're doing more than just existing—you're being used.

The Ripple Effect

A stablecoin isn't an island. This kind of expansion reshuffles liquidity across crypto markets, pressures competitors, and offers a new, massive pool of collateral for the decentralized finance machine. It's a liquidity event that keeps on giving.

One cynical finance jab? On Wall Street, they'd call this 'exceptional shareholder value creation' and award themselves a bonus. In crypto, we just build and the market votes with its wallet. PYUSD's vote was a resounding yes—now the pressure's on to justify that $3.8 billion valuation every single day.

LayerZero integration pushes PYUSD supply growth

PayPal integrated with LayerZero in September, which helped expand PYUSD to nine additional blockchains, including Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron, and upgraded versions on Berachain and Flow. The expansion enabled direct access to over 400 million active users across PayPal and Venmo for PYUSD. PYUSD supply increased from roughly $1.2 billion to approximately $3.8 billion in Q4, based on DeFiLlama on-chain data. 

The LayerZero integration in September provided PYUSD with the opportunity to expand its presence across multiple chains rapidly. The multichain strategy also allowed PYUSD to operate as a bridge between traditional finance and decentralized finance applications. 

PayPal’s distribution network has enabled PYUSD to achieve the current adoption. The growth in volume and token supply underscored PayPal’s competitive advantage in onboarding users who have already established trust in the platform for payments and digital finance. 

So far, the stablecoin market cap has remained at $307.2 billion, with an average weekly growth of 0.8% based on on-chain data. Tether USDT remains the dominant stablecoin, with a market cap of $184.6 billion, representing more than half of the total stablecoin supply. Circle’s USDC accounts for roughly $77.3 billion, coming in as the second-largest stablecoin issuer. The two stablecoins control over 85% of the stablecoin market share, with most of the supply concentrated on the ethereum chain.

PYUSD’s 3.7% yield raises concerns of contradiction with the GENIUS Act

PYUSD’s 3.7% annual yield on balances has, however, attracted attention following its contradiction of the GENIUS Act. The GENIUS Act prohibits yield-bearing stablecoins for compliance purposes. So far, PayPal has not clarified how it will address the current concern with federal regulations, leaving open questions about the legality and future of the stablecoin. Currently, PayPal operates under the New York DFS regulations. 

The GENIUS Act was signed into law in July and has helped in shaping the stablecoin market this year. According to the Act, issuers are limited to insured depository institutions, bank subsidiaries, and approved non-bank financial institutions. The GENIUS Act requires a 1:1 reserve for all stablecoins and restricts any FORM of yield or interest to holders. 

PayPal is one of the top payment options for online consumers who make purchases online. PYUSD stablecoin is presently helping the firm retain its lead and boost its customer engagement. 

PayPal stock has recorded a negative YTD this year, reflecting a tough market for the payment service provider. The YTD stood at -26.30% at the time of publication, with the stock trading at $62.90 on Nasdaq. 

Across the broader cryptocurrency market, Bitcoin and Ethereum tokens have rebounded from last week’s lower lows, posting a roughly 7% increase over the past 24 hours. BTC was trading at $92,878 at the time of publication, alongside ETH, which was trading at $3,052.

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