Over the past 12 days, the stablecoin economy has maintained a similar value, yet the supply of dollar-pegged crypto assets PYUSD and USDE has experienced notable shifts. Over the last 22 days, Paypal’s PYUSD supply increased by more than 70%, while Ethena’s USDE saw an 8.82% decrease within the past 13 days.
Ethena’s USDE Drops Amid Market Volatility; PYUSD Supply Continues Upward
On July 25, 2024, Bitcoin.com News reported that the stablecoin economy was valued at $164.68 billion, and today, that figure remains unchanged. However, Ethena’s USDE, the fourth-largest stablecoin, has recently experienced a decline. According to Coingecko.com, the supply of the yield-bearing stablecoin USDE has dropped by 10.7%, with approximately 8.82% of this reduction occurring in the last 13 days.
USDE’s supply decreased from $3.4 billion on July 24 to the current $3.1 billion, representing a reduction of about $300 million. The increase in USDE redemptions coincided with recent crypto market volatility. Conversely, Paypal’s stablecoin PYUSD has seen a significant rise in supply, with its market cap currently at $651 million. PYUSD’s supply has been consistently increasing in recent times.
On July 15, PYUSD’s market valuation was $382 million, meaning its supply has grown by 70.41% in the last 22 days. PYUSD is now the seventh largest stablecoin, just behind Tron’s USDD, which has a market cap of approximately $738 million. If PYUSD surpasses USDD’s supply, the Tron stablecoin will move to the seventh spot. PYUSD holds an A- grade according to bluechip.org’s stablecoin ratings, while USDD has been assigned an F.
At present, Ethena’s USDE is absent from the stablecoin grade list on bluechip.org. The divergent trends in PYUSD and USDE underscore the dynamic nature of the stablecoin market, where shifts in supply and demand can rapidly alter rankings and market positions. As crypto market volatility persists, participants may focus more on stablecoin stability and utility, potentially driving further changes in supply and capitalization within this sector.