PayPal's PYUSD Stablecoin Market Cap Plummets 40% to $618 Million Amid Solana Decline

PayPal's PYUSD stablecoin has experienced a significant decline in market capitalization, dropping 40% from its August high of over $1 billion to $618 million.

This decline is attributed to a reduced circulating supply on the Solana blockchain and lower yields on platforms like Kamino Finance, Drift, and MarginFi. The yield on Kamino Finance, in particular, has decreased from 17% to below 7%, contributing to the reduced attractiveness of holding PYUSD. Users are reverting back to baseline behaviors since incentives for using PYUSD have diminished.

This is an AI-generated article powered by DeepNewz, curated by The Defiant. For more information, including article sources, visit DeepNewz.