PayPal’s Stablecoin Shows Contrasting Trend: 4-Month Record Set as Market Cap Shrinks by 24%

PayPal’s stablecoin PYUSD reached its highest network growth in the last four months, with 863 new wallets created in a single day despite a decline in market value.

As volatility continues in the cryptocurrency markets, remarkable data has begun to emerge from the PayPal USD (PYUSD) front. According to on-chain data shared by Santiment Intelligence, 863 new wallets were created on the PYUSD network in just one day. This figure was recorded as the strongest daily network growth seen since April 8th.

This rapid growth presents a contrast to the asset’s market value, creating a positive divergence. The stablecoin, whose market cap has decreased by 24% since the end of May, continues to expand its user base despite this contraction on the supply side. Analysts describe the increase in new wallet numbers while market value melts away as a much healthier signal than passive supply growth. This situation indicates that although the total supply has not yet fully recovered, user activity and individual interest are returning strongly.

PayPal’s Expansion Strategy and Use Cases

PayPal continues its strategic moves to increase PYUSD adoption without slowing down. While the company expanded stablecoin access to 70 different markets worldwide, it also began offering PYUSD rewards to users through the PayPal and Venmo apps. Furthermore, infrastructure work allowing commercial businesses in the U.S. to receive payments via this stablecoin is diversifying its use cases.

Launched natively on the Polygon network in July, PYUSD expanded into a broader ecosystem by increasing its network diversity. Previously, the zero-transaction fee policy implemented by the Coinbase exchange had also facilitated the asset’s access to exchanges and merchant adoption. Current data reveals that wallet activity recovering before supply creates a more solid foundation for the asset in terms of payment systems and exchange access.