PayPal’s Stablecoin Sees Circulation Decrease Amid Market Fluctuations
The PayPal USD (PYUSD) stablecoin, a collaboration between PayPal and Paxos, observed a significant decline in circulation during March.
Paxos’ latest transparency report indicates a 39% reduction in PYUSD circulation compared to the previous month, totaling $188.5 million.
CoinGecko data reveals a decline in PYUSD market capitalization since late February, reaching an all-time high of $312 million on February 26. Despite significant growth earlier in 2024, PYUSD’s market cap has been on a downward trajectory.
Despite the broader cryptocurrency market rally, including Bitcoin’s surge above $73,000 on March 13, PYUSD’s market cap declined. However, PYUSD integration into PayPal’s Xoom money transfer platform on April 4 offers new utility, allowing fee-free cross-border transactions. This move underscores PYUSD’s growing prominence despite its recent market cap decline.
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The decrease in PYUSD circulation comes amid a broader trend of stablecoin market fluctuations and regulatory scrutiny. Despite its decline in circulation, PYUSD remains a significant player in the stablecoin market, ranking as the 13th largest stablecoin by market capitalization.
This indicates that despite the recent dip, PYUSD continues to attract users and maintain its relevance in the digital payments landscape.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
