PayPal’s Stablecoin Is Not That Successful, After All

It has been just revealed the fact that PayPal’s stablecoin is not as successful as expected. Check out the latest reports about this below.

According to data firm Nansen, PayPal’s newly launched stablecoin, PYUSD, has not gained much traction among crypto users who are not using and holding it in self-custody wallets.

Nansen suggests that this could be due to a lack of demand for PYUSD as there are other alternatives available.

The report also points out that PayPal may be targeting a different demographic.

While PayPal launched the stablecoin in partnership with Paxos earlier this month, questions have been raised about its usefulness because of the high transaction fees associated with the Ethereum blockchain on which it is issued.

According to Nansen, holders of “smart money” have been avoiding the stablecoin PYUSD, with Paxos still in custody of over 90% of its supply. Only a small percentage of the supply, just over 7%, is held by exchanges such as Kraken, Gate.io, and Crypto.com.

Less than ten individual holders, who are not contracts or exchanges, have balances exceeding $1,000. Nansen reports that the top holder in this category has less than $10,000 and purchased the token by selling three different memecoins.

The Block reached out to PayPal for comment but has not received a response at this time.

PayPal has introduced a new feature called the ‘Cryptocurrencies Hub’ for selected users, which makes managing crypto assets within the app easier.

To access this feature, new users will need to accept the updated terms and conditions. Once you have access, you can hold a balance of crypto assets and use the app to buy, sell, receive and send crypto assets.

Additionally, you can use the proceeds from the sale of crypto assets to pay for purchases through PayPal and convert between PYUSD and other crypto assets. The balance in the Cryptocurrencies Hub indicates your ownership of each displayed crypto asset.