With less than twenty percent of its $44.37 million total supply entering circulation, the PYUSD stablecoin, which PayPal supports, has needed help in gaining widespread adoption. Despite initial excitement around its introduction, PYUSD is finding it difficult to establish itself in the cutthroat stablecoin market.
The distribution of the PYUSD cryptocurrency is significantly concentrated among a small number of individuals, according to statistics from Etherscan. Concerns have been expressed concerning PYUSD’s accessibility and decentralization due to this ownership concentration. The fierce competition PYUSD faces against other yield-bearing stablecoins on the market is one of the main reasons for its limited acceptance.
Different opinions gathered from different social media platforms on this trend show that most cryptocurrency community expects more from PYUSD, considering it comes from a globally acclaimed payment company. They hoped it would rank should-to-shoulder with stablecoins like the USDC by Circle and USDT by Tether.
Paxos Possess $37.88 Million PYUSD, Circulating Supply Peaks $6.52 Million
On-chain data shows that Paxos Treasury, the company in charge of creating the stablecoin, has the majority of PYUSD tokens, amounting to $37.88 million in total. A significant amount of the supply is also held by one unidentified location, which adds to the concentration of ownership.
On September 9, the PYUSD circulating supply peaked at $6.52 million, but there have been some indications of a minor fall. Explaining this trend, Bein Crypto’s Oluwapelumi Adejumo explained that this drop in circulating supply could be a sign that people aren’t interested in the stablecoin or don’t have any demand for it.
Adejumo also added that PYUSD has a chance of success because of PayPal’s support and its stand in the banking sector. He further suggested that to develop a firmer footing in the market, the stablecoin must overcome problems with distribution, competitiveness, and decentralization.
Etherscan, Coinbase, Others Dominate the List Of Highest PYUSD Holders
Other companies that made up the list of highest PYUSD holdings include Gate.io, Coinbase, Huobi, BitMart, and Crypto.com. Also, Per Etherscan was reported to have stored the stablecoin in 534 addresses. Random industry analysts have continuously compared the recently launched Aave GHO with the performance of PYUSD, with PayPal’s stablecoin making the least impact.
It was also gathered that the Aave GHO circulating power surged by $25 million in value in one month. PYUSD was recently ranked #61 on the list of the best-performing stablecoins by the CoinMarketCap platform listings. It was placed in the same category as Parallel PAR, RAI Reflex, and NXUSD, considered the list of performing stablecoins.
Some industry giants have taken an interest in this development. In their recent revelation, Bank of America (BOA) said that they expect little growth in PYUSD anytime soon. According to recent research by Bank of America, the abundance of alternatives means that PYUSD may still need help drawing consumers. They’d said that the abundance of alternatives means that PYUSD may still need help drawing consumers.
The report also revealed that it will need help with popular stablecoins. They added that this development is because the existing popular stablecoins are mainly “yield-bearing.“ However, past performance of the PYUSD in August also revealed that it once had a hard start few weeks after it’s launch – with major cryptocurrency exchanges like Gate.io, Kraken, and Crypto.com holding 7% of in their wallets.