Solana-based PYUSD Now Competing Intense With Tokens on the Ethereum Network

Key Points:

• The supply of Solana-based PYUSD stablecoin has grown rapidly to nearly $240 million since its May launch.
• Solana differs from Ethereum in its high transaction throughput and low transaction costs.
• Despite the recent gains, PYUSD and other Solana-based stablecoins remain only a small percentage of the stablecoin market.

The supply of the Solana-based PYUSD stablecoin inches closer to that of its Ethereum-based counterpart.

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Solana-based PYUSD Stablecoin Supply Grows Rapidly

Since the launch in May, the Solana-based PYUSD aggregated almost $240 million in supply. Comparatively, the supply of Ethereum-based PYUSD tokens stands at some $348 million, having hit the market nearly a year ago, according to The Block.

The increasing dominance of Solana is highlighted in its transaction volume, which outpaces that of Ethereum, powered not only by the meme coins but also by taking the lion's share in stablecoin transfers.

Whereas Solana can process up to 65,000 transactions per second at less than $0.0025, Ethereum's biggest competitor can process only 15 transactions per second with fees of $1 to $50 during high congestion periods, resulting in much faster transaction times—less than a minute on Solana, compared to the several minutes on Ethereum.

PYUSD Stablecoin Still a Minor Player in the Market

Sheraz Shere, General Manager of Payments at the Solana Foundation, said that this growth was a function of the strength and efficiency of the Solana network. "This rapid growth underscores the strength and efficiency of the Solana network," he added.

This could also be driven by decentralized exchanges that have integrated PYUSD. The issuer of PYUSD, Paxos, has not given up on its quest to improve its market presence by integrating into popular blockchains and international payment platforms; even as such efforts continue, PYUSD and other Solana-based stablecoins remain a mere fraction of the stablecoin market dominated by Tether's USDT and Circle's USDC.