Crypto
Nansen Report Reveals PayPal’s Stablecoin Experiences Sluggish Demand from Crypto Community
As per the data company, just a few people utilize and hold the PYUSD token of PayPal in the case of self-custody wallets.
The latest stablecoin project of PayPal is reportedly witnessing a slightly slow beginning. Nansen (a famous data platform) also reported about it. As per the data company, just a few people utilize and hold the PYUSD token of PayPal in the case of self-custody wallets.
The firm stated that there is a demand deficiency from the clients for the PYUSD coin due to other alternatives.
Top Reasons Why PayPal’s Stablecoin Faces Sluggish Demand
Nansen also talked about the possible reason behind this in its report. According to the platform, the payment giant’s focus on a diverse demographic may be the cause at the back.
PayPal released the respective token recently in collaboration with Paxos. Nonetheless, the issuance of the stablecoin takes place on the blockchain of Ethereum.
This has raised several questions concerning its usefulness due to the high transfer charges linked to the protocol’s usage. Nansen brought to the front that people holding smart money appear to be dodging the stablecoin up till now. In this regard, Paxos still possesses above ninety percent of the PYUSD token’s supply.
On the other hand, crypto exchanges such as Crypto.com, Gate.io, and Kraken hold only seven percent of the supply. Just 10 holders excluding exchanges or contracts possess balances of above $1,000.
Also Read: The Future of Bitcoin and Crypto in 2023
The prominent holder in the respective class possesses less than $10,000. The respective holder purchased the token following selling 3 diverse meme tokens, Nansen added.
However, PayPal and an Australian crypto exchange called Independent Reserve have recently collaborated. This partnership enables on-ramp, letting Independent Reserve’s clients fund crypto accounts straight with fiat using PayPal wallets.
They can also redeem funds in the same way. PayPal’s managing director Peter Cowan remarked on this move, saying this would minimize the complexity and limitations concerning the shifting of funds.
