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PayPal’s U.S. dollar-backed stablecoin, PayPal USD (PYUSD), has now integrated with LayerZero’s cross-blockchain bridging protocol. This development allows PYUSD holders to transfer assets between the Ethereum and Solana blockchains seamlessly.
The integration leverages LayerZero’s Omnichain Fungible Token (OFT) Standard, which lets users manage assets without relying on centralized platforms like PayPal or Venmo. Announced by LayerZero on November 12, this integration strengthens PYUSD’s position in the expanding cross-chain ecosystem, a crucial step in its adoption.
Rapid Evolution of PYUSD
Since its launch, PYUSD’s market cap and distribution have experienced notable shifts, signaling both growth and rebalancing within its network presence.
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In August, PYUSD reached a market cap peak of $1 billion, with a large portion circulating on Solana. At that time, around $660 million worth of stablecoin was on Solana, while $340 million was on Ethereum.
However, recent data from DefiLlama shows a significant shift: PYUSD’s total market cap has nearly halved to $513 million, with Solana now hosting only $166 million and Ethereum holding $384 million. These changes underscore the stablecoin’s responsiveness to market trends and PayPal’s ongoing adjustments in the stablecoin landscape.
The integration with LayerZero complements other recent steps PayPal has taken to enhance PYUSD’s usability and appeal.
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Earlier in May, PayPal launched PYUSD on Solana in partnership with firms like Crypto.com and Paxos, along with Phantom, a popular Solana wallet. The launch was part of a wider push to bring more users onto the Solana network. PayPal also teamed up with MoonPay, which enables the former’s users to purchase cryptocurrency, including on platforms like Polymarket, a decentralized betting site.
Major Stablecoin Rivals
Despite its recent expansion, PYUSD has yet to capture the massive market shares held by leading stablecoins Tether (USDT) and USD Coin (USDC). According to CoinMarketCap, Tether and USDC have market caps of nearly $118 billion and $35 billion, respectively, leaving PYUSD trailing significantly. Even with strategic moves like cross-chain transfers, PYUSD’s market cap remains modest compared to its larger rivals.
However, with its integration of cross-blockchain capabilities and ongoing partnerships, PYUSD is steadily positioning itself within the stablecoin market.
