Journalist
Posted:
- PYUSD volume declines by over 6% in 24 hours.
- Market cap depicts low adoption compared to other stablecoins.
The PayPal USD, known as PYUSD, was anticipated to gain popularity as a stablecoin. This was primarily because of its support from the renowned payment giant and the extensive customer base it wields. However, recent reports indicated that this expectation didn’t materialize as anticipated.
Paxos reports show low PYUSD adoption
In a recent report released by Paxos, the issuer of the PYUSD stablecoin, it was revealed that the stablecoin’s market capitalization remained below $50 million. This information was based on PayPal’s initial transparency report. The report highlighted that PYUSD didn’t achieve widespread adoption despite its promise to facilitate global payments. The issuer disclosed that PYUSD was backed by assets totaling $45.3 million.
Out of this amount, approximately $1.5 million was backed by cash deposits. The majority of the reserves, amounting to $43.8 million, were collateralized through US Treasuries via reverse repurchase agreements.
How PYUSD ranks
Based on data provided by CoinMarketCap, PYUSD’s trading volume experienced a notable decrease of more than 6% within the last 24 hours. At the time of this report, the trading volume stood at approximately $2.8 million, positioning it at number 340 in terms of trading volume among all cryptocurrencies.
Source: CoinMarketCap
Additionally, CoinMarketCap data indicated that PYUSD boasted of a market capitalization of approximately $44.4 million. This led to its ranking at number 380 by market capitalization among all cryptocurrencies.
In the context of stablecoins specifically, PYUSD held the 19th position in terms of market capitalization as of this writing.
How it compares to other stablecoins
When comparing PYUSD to leading stablecoins like Tether (USDT) and Circle (USDC), the differences in market capitalization and trading volume were quite significant. As of the current data, USDT had a market capitalization exceeding $83 billion, accompanied by a 24-hour trading volume surpassing $20 billion. Similarly, USDC boasted of a market capitalization of over $26 billion and a 24-hour trading volume of more than $3 billion.
Some possible reasons for its slow adoption
USDT and USDC stand out as two of the earliest and most widely acknowledged stablecoins in the market. Their early entry into the space allowed them to establish trust and familiarity among users. Consequently, USDT and USDC have amassed a substantial user base and integrated themselves into numerous platforms, rendering them highly attractive options.
Additionally, trust plays a crucial role in the adoption of stablecoins. Users often favor stablecoins with a demonstrated history of consistently maintaining their value at par with the US dollar. These represent pivotal benchmarks that PYUSD may need to attain before it can witness an increase in its adoption rate.
