Stablecoin Market Falls 2.7% as PYUSD Drops 40% Amid Reward Cuts
The post Stablecoin Market Falls 2.7% as PYUSD Drops 40% Amid Reward Cuts appeared on BitcoinEthereumNews.com.
Stablecoin market dips 2.7%, with PYUSD seeing a 40% market cap drop amid reduced yields. Euro-pegged stablecoins like EURC rise, benefiting from Base and MiCA-compliance efforts. USDC sees cyclical transaction volumes, with Ethereum and Layer 2s capturing distinct segments. The stablecoin market, currently valued at $170.93 billion, dropped 2.7% since its August 30th high. Although the overall stablecoin supply grew 100x since 2019, recent changes reveal shifts in specific stablecoins. Global stablecoin supply is down over the last 60 days due to the decline of PayPal’s $PYUSD; however, the drop in supply looks insignificant compared to the 100x in stablecoin supply since early 2019 — current stablecoin market cap stands at $170.93B Get a full overview on… pic.twitter.com/9WbziDK72D — OurNetwork 🔎 (@ournetwork__) October 26, 2024 The market dip coincides with a 40% decline in the market cap of PayPal’s PYUSD stablecoin. As PYUSD rewards fell from an initial 17% to below 7%, holder interest waned, affecting the stablecoin’s growth. Initially attracted to PYUSD through a partnership with Solana’s Kamino Finance, investors pushed its market cap past $1 billion in August. But the reward reductions shrank PYUSD’s valuation to $618 million. PYUSD now stands as the ninth-largest stablecoin, with $267 million on Solana and $350 million on Ethereum.. Euro-Pegged Stablecoins Gain Traction While USD-backed stablecoins dominate the market, euro-pegged stablecoins like Circle’s EURC gain popularity. EURC’s supply increased by over 40% in the last month, with Base seeing significant growth. EURC’s value on Base surged from $22 million to $48 million. This aligns with Coinbase’s efforts to comply with the EU’s MiCA regulations, which the company promotes as a competitive advantage. Additionally, the banking industry, traditionally hesitant towards stablecoins, shows more engagement. Societe Generale’s EURCV, the only bank-issued stablecoin on Ethereum, grew 11% to reach a market cap of $41.7 million.…
Filed under: News - @ October 28, 2024 9:18 am