Wed, June 26

PayPal’s PYUSD Stablecoin Faces Adoption Challenges

PayPal’s PYUSD Stablecoin Faces Adoption Challenges Altcoin News
  •  Coinbase has recently announced it would be adding support for PayPal’s stablecoin.
  • Less than 50,000 coins are represented in pools on decentralized exchanges.

On-chain data shows that the newly launched PYUSD stablecoin is struggling to acquire adoption. Nansen, a blockchain analytics company, estimates that around 90% of PYUSD is kept in the wallets of stablecoin issuer Paxos Trust at the present time.

The research claims that Kraken, Gate.io, and Crypto.com wallets have a combined total of approximately 7% of the entire supply. Acceptance among smart money investors, a phrase for sophisticated or professional investors, is low.

Long Way to Go

The cryptocurrency industry was prepared for PayPal’s stablecoin launch in early August. Stablecoins were expected to increase cryptocurrency acceptance and promote them to a wider audience. In spite of the financial behemoth’s 350 million users throughout the globe, only a small percentage have actually utilized or held its stablecoin in self-custody wallets so far.

Less than 50,000 coins are represented in pools on decentralized exchanges like Uniswap’s PYUSD/wETH and PYUSD/USDC. There seems to be a minimal degree of interest, since the biggest holder who is not an exchange or contract has less than $10k worth of PYUSD, according to an examination of the top individual holders.

Furthermore, less than ten holders (not including contracts or exchanges) are shown to have a balance of $1,000 or more. PYUSD has just been in circulation for a little over three weeks, therefore the adoption rate is understandably low. There was no notification of its impending release before it went live.

On the other hand, providing a major boost, cryptocurrency exchange Coinbase has announced it would be adding support for PayPal’s stablecoin, PYUSD. With this move, a second major U.S.-based exchange has adopted the cryptocurrency in the span of a week.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.