Paxos Data Reveals 38% Decline In PayPal Stablecoin Circulation For March

The PayPal USD, a stablecoin jointly issued by the renowned payment giant and the cryptocurrency firm Paxos, experienced a notable decline in circulation during March.

According to the latest transparency report from Paxos concerning PayPal USD, its circulation in March stood at $188.5 million, reflecting a decrease of 39% compared to the previous month.

In Feb and Jan, the circulation of PayPal USD peaked at $304 million and $301 million, respectively.

As of Mar. 29, PayPal USD’s treasury held $14.9 million worth of United States Treasury bonds, with a notional value of approximately $14.8 million.

The present market value of the collateralized U.S. Treasury bond holdings for PYUSD in reverse repurchase agreements is $177.9 million, with a notional position value of roughly $174 million. The net assets are valued at $192 million, with a notional position value of $189 million.

PayPal’s market worth in US dollars has been declining since late February after hitting its highest point of $312 million on Feb. 26, according to data from CoinGecko.

In early 2024, the stablecoin saw some rapid growth, doubling its market value by about a month by mid-Jan.

PayPal PYUSD Surges: Stablecoin Success

Moreover, PYUSD’s market capitalization currently stands at $194 million, showing an increase of around 3% over the past week.

PayPal USD (PYUSD) all-time price chart. Source: CoinGecko

In Aug 2023, PayPal partnered with Paxos Trust to introduce the PayPal USD stablecoin. They pitched it as perfect for online payments and the Web3 scene. This coin is tied to the U.S. dollar at a 1:1 rate. U.S. dollar deposits, short-term Treasurys, and similar assets support it.

However, Fast forward eight months, and PYUSD has become a big deal. It’s now the 13th biggest stablecoin by market value, even surpassing Paxos’ Pax Dollar (USDP) and Gemini Dollar (GUSD), says CoinGecko.

Top 13 stablecoins by market capitalization. Source: CoinGecko

PYUSD only makes up 0.18% of Tether’s value, which is currently huge, at $106.6 billion. However, All stablecoins combined, including Tether, have a market capitalization of $155 billion.

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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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