Paypal’s token PYUSD, which is pegged to the dollar, has lost 40% of its market cap. Currently, the stablecoin’s market capitalization stands at $618 M.
In the last days of August, the market cap of PYUSD reached a peak of $1B. At that time, it was the fourth-largest stablecoin. However, it’s currently seeing a drop.
PYUSD, aka Paypal USD, was launched in August last year on the Ethereum blockchain. On May 20, 2024, It became available on the Solana blockchain. In the second week of August, the amount of the stablecoin was greater on Solana than on Ethereum. This means the demand for it was better on Solana rather than on its home blockchain, Ethereum.
The partnership between Paypla and Kamino Finance was the catalyst in pushing the stablecoin towards growth. The Solana lending market pays big yields to PYUSD holders. Recently, the yields paid on Kamino have decreased from 17% to 7% and below.
