PayPal USD adds 863 wallets as market cap drops 24%

Santiment data showed PayPal USD (PYUSD) added 863 new wallets in a single day, the strongest single-day network growth since April 8. Over the same period, PYUSD’s market capitalization declined about 24% from late May to roughly $2.73 billion.

Santiment’s metrics recorded the 863-wallet inflow and showed rising holder counts across several major stablecoin networks. The data tracked new addresses and transaction activity on-chain without corresponding increases in circulating supply.

PayPal expanded PYUSD support for merchant settlements and added native compatibility with the Polygon blockchain. Those platform updates coincide with the recent rise in wallet creation.

Despite the increase in new wallets and transactions, circulating market value for PYUSD has fallen. Analysts who track on-chain measures noted a widening gap between adoption indicators-such as new wallets and transaction volume-and liquidity measures like circulating supply and market capitalization.

Circle reported that USD Coin (USDC) circulation rose 19% year over year to $73.3 billion. Circle’s figures also showed on-chain transaction volume expanded 151% year over year to $14.8 trillion.

A renewed arrangement between Circle and Coinbase affected USDC distribution across exchanges, institutional channels and payment infrastructure, supporting settlement flows and exchange liquidity.

Market data show total stablecoin market capitalization declined by about $16 billion over the past three months. During that period, PYUSD and USDC reported continued increases in active usage metrics, including wallet counts and transaction volumes.

Recent on-chain and market data present higher transaction activity and wallet growth alongside lower overall market caps and circulating supply for some stablecoins.