The PYUSD stablecoin, issued by PayPal, has recorded impressive growth, nearly reaching 1 billion USD in market capitalization shortly after its launch. Since the beginning of 2025, the capitalization of PYUSD has doubled, reflecting a robust recovery amidst an increasingly competitive stablecoin market. However, this growth is not just reflected in impressive numbers but also brings many issues that need to be addressed.
The Market Situation of PYUSD
Launched in Q3 2023, PYUSD initially faced many difficulties in attracting user acceptance, despite high expectations from the community. The market capitalization of this stablecoin has seen a sharp decline, dropping nearly half in a short period. However, moving into 2025, a new picture has emerged as demand for PYUSD has surged alongside increased user confidence in stablecoins.
Information from BeInCrypto shows that as of June 2025, the market capitalization of PYUSD reached 984 million USD, up from 490 million USD at the beginning of the year. This indicates that PYUSD is likely to surpass the 1 billion USD mark by the end of 2025 and may set a new record for its growth.
According to data from Token Terminal, the circulating supply of PYUSD on blockchain platforms like Ethereum and Solana is also increasing significantly. This is an important milestone in PayPal's strategy to engage in the decentralized finance (DeFi) sector, with the market capitalization growth potential of PYUSD estimated to be tenfold.
SEC Investigation Results and Positive Signals from PayPal
One of the positive news for PYUSD is that the U.S. Securities and Exchange Commission (SEC) has concluded its investigation into this stablecoin. The closure of the case has helped investors feel more secure in participating in the PYUSD market.
Not stopping there, PayPal has also entered the competition for stablecoin yields, currently offering an annual yield of up to 3.7% for PYUSD. According to reports from BeInCrypto, the total market capitalization of stablecoins providing yields is expected to reach 10 billion USD by 2025, indicating that PYUSD is on a positive trend.
Supply Concentration Issues and Their Impact on the Market
Despite impressive growth, a major issue that PYUSD faces is the concentration of supply in the hands of large investors (whales). Data from CoinMarketCap shows that wallets holding more than 1% of the total supply of PYUSD control approximately 91% of the total market capitalization. Dune Analytics also reports that the top five PYUSD wallets hold over 820 million USD, which is more than 80% of the current supply.
This concentration not only raises concerns about the liquidity of PYUSD but also poses many questions about its future stability. Along with many other new stablecoins, supply may not only rely on consumer acceptance but also depend on wallets associated with the development teams of these coins.
Future Prospects and Opinions from Lawmakers
Although there are still many challenges, lawmakers and the financial sector remain optimistic about the future of stablecoins. Treasury Secretary Scott Bessent recently predicted that the USD-backed stablecoin market could exceed 2 trillion USD by 2028. This reflects confidence in the potential of PYUSD and other stablecoins to develop and expand.
Additionally, the U.S. Senate's passage of the GENIUS Act also shows bipartisan support for new amendments and regulations related to stablecoins. These are positive signals for PYUSD and other stablecoins as this market gradually becomes clearer and more firmly regulated.
Conclusion
The strong growth of PYUSD, while promising, is also facing significant challenges. The issues of supply concentration and market acceptance are two critical factors that PayPal needs to address to ensure sustainable development for PYUSD. In the context of a fiercely competitive stablecoin market, PYUSD's ability to adapt and grow will play a decisive role in establishing its position in the future.
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