TechFlow news, according to The Block, as of October 16, 2024, the market cap of PayPal's dollar-pegged stablecoin PYUSD has declined by about 40% from its peak of $1 billion in late August, dropping to just $618 million. Data shows that the significant reduction in PYUSD circulation on the Solana blockchain is the primary reason for this market cap decline.
Haseeb Qureshi, managing partner at Dragonfly Capital, pointed out that declining yields for PYUSD holders on Solana-based lending platforms such as Kamino, Drift, and MarginFi may be a key factor behind this trend. For example, Kamino Finance’s annualized yield for PYUSD deposits has dropped from around 17% to less than 7%.
Notably, PYUSD circulation on the Ethereum mainnet has remained relatively stable at approximately $350 million. In contrast, PYUSD's market cap on Solana has fallen from a high of $600 million in August to around $267 million today.
