Crypto News – The stablecoin known as PayPal USD, which was released in March by the cryptocurrency startup Paxos and the massive payment processor PayPal, suffered a sharp decline in circulation.
PayPal Stablecoin Experienced a 38% Circulation Drop in March
PYUSD circulation was $188.5 million in March, 39% less than in February, according to Paxos’ most recent PayPal USD transparency report. PayPal USD circulation reached a peak of $304 million in February and $301 million in January. United States Treasury bonds with a notional value of approximately $14.8 million comprised $14.9 million of PayPal USD Treasury as of March 29.
The market value for PayPal USD has been declining since late February, according to CoinGecko data, after hitting an all-time high of $312 million on February 26. By mid-January 2024, the stablecoin’s market value had doubled in less than a month, indicating a rapid surge in value. PYUSD has increased in value over the last seven days, with its market capitalization now standing at $194 million as of this writing.
Bitcoin’s Bullish Euphoria Couldn’t Affect PYUSD
Despite a surge in cryptocurrency markets, which saw Bitcoin break all-time highs above $73,000 on March 13, there was a decrease in PYUSD circulation. In August 2023, PayPal and Paxos Trust introduced the PayPal USD stablecoin, which the company advertised as being intended for Web3 and digital payments. PYUSD is backed by U.S. dollar deposits, short-term Treasurys, and other cash equivalents and is pegged to the U.S. dollar at a 1:1 ratio.
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