Stablecoin Market Soars Drastically Due To Paypal's PYUSD

PYUSD, PayPal's stablecoin. (Photo; Doc. NewsBTC)

JAKARTA - The crypto market continues to experience interesting dynamics, and this time the spotlight is focused on stablecoin growth. In the past week, the stablecoins market experienced a significant surge of 344.15 million US dollars, and what attracted attention was the drastic increase in PYUSD from Paypal.

The stablecoin, which now occupies the eighth position by market cap, recorded a striking growth of 41.2% in the last 30 days, with a total valuation of US$585.25 million.

Stablecoin, as a form of crypto whose value is related to other assets (for example, fiat currency or commodity), has an important role in the crypto ecosystem. They provide necessary price stability for daily transactions and are an alternative to frequent volatility in cryptocurrencies such as Bitcoin and Ethereum.

The growth in stablecoins is in line with the increase in the prices of Bitcoin and Ethereum. In the past week, the price of Bitcoin has risen 12.4%, hitting a level above $65,000, while Ethereum has increased by 11.2%. Both are the main cryptocurrencies that continue to attract investors and market players.

Tether (USDT), a stablecoin whose value is related to the US dollar, remains leading with a market valuation of around 112.99 billion US dollars. However, it should be noted that USDT circulation has only increased 0.7% in the past month. Meanwhile, the USD Coin (USDC) of Circle has increased supply by around 4.4%, with current market capitalization reaching 33.81 billion US dollars.

However, what has attracted attention is the rapid increase in PYUSD. This stablecoin was issued by Paypal and Paxos, and in the last 30 days, the supply of PYUSD increased 41.2%, making it the eighth largest stablecoin with a market valuation of 585.25 million US dollars. Paypal's role as a large institution in developing the stablecoin market is increasingly clear.

With continued growth, industry players and investors will continue to monitor stablecoin movements. The question that arises is: Will stablecoin further strengthen its position as a stable and reliable alternative in the crypto ecosystem? And how will the role of large institutions like Paypal affect the future development direction of digital currencies?