PayPal USD (PYUSD) has achieved sixth place among stablecoins, boasting $2.761 billion in circulation within a $308 billion market. Issued by Paxos and backed by U.S. dollars, the token experienced a significant growth of $1.761 billion in just 77 days. It is currently distributed across the Ethereum network, holding 56.8% of its supply, and the Solana network, with 39.3%.
The stablecoin market, now exceeding $308 billion, remains largely concentrated among a few issuers. However, the emergence of PayPal USD (PYUSD) is beginning to alter this established hierarchy.
PayPal Drives PYUSD's Resurgence
PayPal introduced PYUSD in August 2023 with the objective of bridging traditional payment systems with digital assets under its established brand. Initially, the token reached one billion units issued within its first year but saw a decline in momentum towards the end of 2024. Its recovery commenced in the third quarter of 2025, fueled by enhanced integration with PayPal and Venmo payment services, alongside increasing institutional adoption.
According to data from Defillama, Ethereum currently hosts 56.83% of PYUSD's total supply, while Solana accounts for 39.35%. The remaining supply is distributed across smaller networks, including Berachain, Flow, and Plume Mainnet. This multi-network strategy contrasts with the predominant reliance on Ethereum seen in many other stablecoins, as PayPal aims to leverage various networks to optimize costs and expedite settlement processes.
A Highly Concentrated Market Landscape
With its recent growth, PYUSD has now surpassed BlackRock's BUIDL, which has $2.687 billion in circulation, and World Liberty Financial's USD1, with $2.674 billion. At the forefront of the stablecoin market remain Sky's stablecoins (formerly MakerDAO): DAI, with $5.146 billion, and USDS, with $5.319 billion. The performance of PayPal's stablecoin highlights the potential for institutional issuers to gain significant traction in a market historically dominated by crypto-native projects.
Data from Etherscan indicates a high degree of supply concentration, with the top 100 wallets collectively holding 99.6% of all PYUSD. Prominent entities among these include Copper, Paxos, Aave, Crypto.com, and Defiance Capital, which together manage approximately 1.168 billion PYUSD, representing 42% of the total supply. This concentration raises considerations regarding liquidity and decentralization, while simultaneously underscoring the token's institutional appeal.
The expansion of PYUSD further validates the growing influence of stablecoins backed by major financial institutions within the cryptocurrency sector. PayPal has successfully established its digital dollar as a significant and relevant asset in the current market.