Why is PayPal’s stablecoin PYUSD struggling a month after launch?

Real-world adoption of PayPal’s stablecoin PYUSD has been sluggish with just $45M in reserves reported so far.

Stablecoin market cap dips to lowest levels in nearly two years

Total stablecoin market cap has fallen for 14 consecutive months and currently sits at its lowest level since September 2021.

The move follows the SEC’s demand that crypto exchange Paxos stop minting Binance’s BUSD stablecoin because it may be a security.

Paxos has announced that it will no longer issue Binance USD after an order from the New York Department of Financial Services.

With no recent capital injections or incentives for short-sellers, solving problems with USDD and USDJ doesn’t seem to be a priority for Sun.