Is PYUSD a Flop So Far? Nansen Says Few People Using PayPal’s Dollar Based Stablecoin

Earlier this month, PayPal (NASDAQ:PYPL), a top publicly traded Fintech, announced the launch of a dollar-based stablecoin PayPal USD or PYUSD. The stablecoin is being issued in partnership with Paxos, a top, regulated digital asset firm.

Stablecoins are one of the most promising sectors of crypto. Typically tied to fiat currency, stablecoins may also be tied to a commodity or another type of “stable” asset. Several platforms have attempted to create algorithmic stablecoins (with limited success). Yet, when viewed as more of a new form of payment rails – transferring dollars, etc., to pay for an item or service or moving money, stablecoins start to appear more viable. Payments in real-time at a very low cost, in contrast to expensive credit cards, could be the future of payments – if regulated correctly.

PayPal leveraging a stablecoin for its payment services, including Venmo, makes a lot of sense. Yet, according to Nansen, few people are using PYUSD, at least so far.

Nansen shares that very few people are currently using and holding PYUSD in their self-custody wallets. A Nansen representative shares that on the surface there’s a lack of demand from crypto users for PYUSD when other alternatives exist. Currently, there is only one Smart Money holder of Paypal’s stablecoin, and they hold less than $1’s worth.

According to Nansen, PYUSD in uni-swap pools (PYUSD/ WETH) and (PYUSD/USDC)  have less than 50k tokens behind them, and the first top holder that isn’t an exchange or contract is someone who holds less than 10k PYUSD and they bought PYUSD when they sold three different meme-coins.
Currently, there are less than ten holders that aren’t contracts or exchanges and hold a balance of more than 1k USD.

The stablecoin industry is still in its infancy and is currently dominated by the two top issuers, Circle – USDC and Tether -USDT, with over $100 billion in value held in these stablecoins. If effective regulation is put in place in the US, this value and utilization will soar.



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