PayPal USD: Solana passes Ethereum

Most PayPal USD (PYUSD) are now on Solana (SOL). 52.3 percent of the 678 million PYUSD are on Solana. With this, Solana is overtaking Ethereum.

One possible reason is the higher returns investors can get for PYUSD deposits on Solana protocols. For example, at Kamino Finance, you get 14.47 percent APY for PayPal USD. By contrast, on the Ethereum protocol AAVE, you only get 3.65 percent. Moreover, Solana and PayPal are teaming up for a hackathon.

At the Global PYUSD Portal Hackathon, developers can win prizes worth a total of PYUSD 40,000. The hackathon runs until Sept. 16. Compared to other Stablecoins, however, the PayPal Stablecoin is still small. The market capitalization of the Stablecoin introduced by PayPal is about USD737 million. In comparison, Tether (USDT) has a market capitalization of 116 billion USD.

Between Stablecoin providers Tether and Circle, however, there has been hassle. Circle sued the competitor on Aug. 12 for $3.4 billion.