The Paxos-issued stablecoin PYUSD looks to be having difficulties garnering on-chain usage, despite being backed by PayPal and set to be listed on Coinbase.
PYUSD Is Facing Difficulties In Acceptance
The Paxos-issued stablecoin PYUSD looks to be having difficulties garnering on-chain usage, despite being backed by PayPal and set to be listed on Coinbase.
While the stablecoin market has experienced a decrease in total supply, with industry leaders USDC and USDT witnessing substantial daily outflows, various centralized and decentralized alternatives have emerged to fill the void. The overall stablecoin market capitalization has declined from $167 billion at the beginning of 2023 to $124 billion.
Though once anticipated as a potential rival to market leaders Circle and Tether, PYUSD has struggled to find traction three weeks after its debut. PYUSD, which has been criticized for being overly centralized, has had difficulty growing its circulation as the majority of its tokens appear to be stored on centralized exchanges.
According to CoinMarketCap, there are 43 million PYUSD tokens in existence. However, data from DeFiLlama suggests that most of these tokens have not been put into circulation, indicating a lack of active use. Paxos, the issuer of PYUSD, holds 90% of the circulating supply, while decentralized exchange pools hold a mere fraction of the tokens.
Comparatively, other decentralized stablecoins that entered the market in the past year achieved faster adoption rates. The Aave lending protocol's GHO and Curve's crvUSD gained substantial market capitalization within their initial three weeks.
