According to data from Nansen, a blockchain analytics firm, only about 200,000 PYUSD tokens have been minted since PayPal launched the stablecoin on August 11. This is a very small number compared to the millions or even billions of tokens that are minted by other stablecoins, such as Tether (USDT) and USD Coin (USDC).
There are a few possible reasons for the sluggish demand for PYUSD. One reason could be that PayPal is targeting a different demographic than other stablecoin issuers. PayPal is a mainstream payments company with a large user base of people who are not necessarily familiar with cryptocurrencies. These users may be more interested in using PYUSD to make payments or store money than to trade it on cryptocurrency exchanges.
Another reason for the sluggish demand could be the high transaction fees associated with using the Ethereum blockchain. PYUSD is issued on the Ethereum blockchain, and the high gas fees on the network can make it expensive to transfer or trade the token. This could be discouraging some users from using PYUSD.
Finally, it’s also possible that the recent sell-off in the cryptocurrency market has dampened demand for all stablecoins, including PYUSD. As the price of Bitcoin and other cryptocurrencies has fallen, so has the demand for stablecoins, which are often used to store value or hedge against volatility.
It’s still too early to say whether PayPal’s new stablecoin will be successful. However, the sluggish demand so far is not a good sign. PayPal will need to do more to attract users to PYUSD if it wants to compete with the other stablecoins that are already on the market.
Here are some things that PayPal could do to increase demand for PYUSD:
Make it easier for users to purchase and redeem PYUSD.
Reduce the transaction fees associated with using PYUSD.
Market PYUSD to a wider audience, including cryptocurrency enthusiasts.
Partner with other businesses to accept PYUSD as payment.
Only time will tell whether PayPal’s new stablecoin will be a success. However, the company will need to take some steps to increase demand if it wants to compete with the other stablecoins that are already on the market.