A new report has shown that the adoption of PayPal’s PYUSD stablecoin has seen less than favorable adoption rates since its inception. The crypto community remains skeptical about employing the new stablecoin for daily crypto payments and has opted for top competitor stablecoins like USDT and USDC.
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PayPal's PYUSD report offers stablecoin performance insight. PYUSD Experiences Sluggish Adoption Rate
PayPal recently released its transparency report for its stablecoin, PYUSD. The report suggests that the PYUSD stablecoin has not seen as much adoption as PayPal and Paxos, the issuer of PYUSD, had hoped for. Despite being launched by one of the largest players in the payments industry, PYUSD remains a relatively small player in the cryptocurrency market compared to industry heavyweights like Tether (USDT) and USD Coin (USDC). PayPal's PYUSD report offers stablecoin performance insight.
According to Kaiko analyst Desislava Aubert, despite being listed on prominent exchange platforms like Coinbase and Huobi Global, the PYUSD stablecoin's adoption rate has been progressing slowly, and its daily trade volumes have been fairly low. This suggests sluggish demand for the stablecoin.
The PayPal USD stablecoin was issued by Paxos Trust Company in August and is backed by $45.3 million in assets, including over $1.5 million in cash deposits and US Treasuries as reverse purchase agreements. However, PYUSD's market capitalization of $44 million indicates subpar adoption due to its failure to catch and retain the attention of the crypto community.
Crypto Investors Opt For Top Stablecoins
The PYUSD stablecoin is facing low acceptance and adoption rates due to its newness and lack of familiarity in the market. The stablecoin market is already dominated by well-established cryptocurrencies such as USDT, USDC, and others, which are preferred by a majority of crypto investors for their reliability and sustainability.
USDT currently has a market capitalization of over $83 billion, while USDC has a market cap of $26 billion. In comparison, PYUSD's 24-hour trading volume is only $3.2 million. This clearly indicates that investors are more inclined towards the top stablecoins for their transactions.
Despite the slow adoption rate of PYUSD, PayPal remains committed to its cryptocurrency ventures. The payment giant has expanded its services globally and is leveraging its brand name and reputation as an international financial service provider to promote crypto adoption and awareness among users in different countries.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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