Stablecoin giants like USDT and USDC continue to dominate. However, PayPal's PYUSD is emerging as a new force with significant growth.
Stablecoin Market Positioning
According to Hashdex's research, the stablecoin market's dominance grew by 3% in Q3 2024. Both USDT and USDC increased their market shares by 1% and 5% respectively.
PYUSD's Rising Influence
PayPal's PYUSD, issued by Paxos Trust Company and backed by US dollar reserves, saw a 57% increase in dominance during the same period. Within 383 days of its launch, PYUSD achieved a $1 billion market cap, reflecting significant progress.
Stablecoins' Appeal in Fintech
Financial companies are increasingly interested in stablecoins. Revolut is developing its own, and Ripple plans to launch RLUSD, supported by US dollar reserves. Banks, like J.P. Morgan, are also creating solutions for real-time payments.
The growing interest in stablecoins within the fintech sector is fueling increased competition. PayPal PYUSD has already positioned itself as a significant player, potentially setting the stage for further market development.