The post PayPal’s PYUSD Hits $4.11B While Ripple’s RLUSD Lags Behind appeared first on Coinpedia Fintech News
PayPal’s stablecoin, PayPal USD (PYUSD), has reached a market capitalization of $4.11 billion, marking one of the fastest growth phases in the stablecoin space. The token has expanded rapidly since mid-2025, rising from around $500 million to over $4 billion.
In contrast, Ripple’s RLUSD, which once touched nearly $1.6 billion, has recently pulled back to around $1.42 billion.
PYUSD Growth Driven by Real Usage, Not Hype
PYUSD’s rise is not just about market cycles, it is driven by actual usage.
PayPal has expanded the stablecoin across 13 blockchain networks in 2025, including Ethereum, Solana, Arbitrum, and Stellar. This multi-chain approach allows users to move funds easily across networks, making PYUSD more accessible for both payments and DeFi.
A key push came through a LayerZero integration, which allowed PYUSD to move freely across nine additional chains.
On Solana alone, PYUSD became the second-largest stablecoin on the Kamino lending platform, with over $500 million in deposits. This shows strong demand beyond simple trading.
Even recently, Coinpedia news reported that YouTube announced that eligible U.S. creators can get paid directly in PayPal’s PYUSD stablecoin.
Yield and Rewards Attract Users
Another key reason behind PYUSD’s growth is incentives.
PayPal introduced around 3.7% yield on PYUSD balances, giving users a reason to hold the token instead of just using it for transfers. The stablecoin is currently trading close to $1, maintaining its peg, while daily trading volumes range from $85 to $100 million.
On top of that, features like cashback rewards linked to PYUSD created a real use case for everyday users.
Ripple RLUSD Faces a Tough Competitive Market
PYUSD surged over 600% in 2025, rising to $4.11 billion in market cap, while RLUSD dropped from its peak to around $142 billion.
Ripple’s RLUSD started strong after its launch in late 2024. It quickly grew to nearly $1.6 billion by early 2026, showing early traction. However, growth later slowed, and it dropped to around $1.42 billion.
The main reason is strong competition.
RLUSD entered a market led by USDT at $184 billion and USDC at $77 billion, making it hard to grow fast.
It also depends on the XRP ecosystem, and with XRP down over 40% in 2026, interest has weakened.
Signs of a Comeback for RLUSD
Despite the drop, RLUSD is not out of the race.
Ripple has been expanding its technology, allowing cross-chain transfers on networks like Base and Optimism, which improves its use in DeFi.
Recent data shows growth picking up again, suggesting a possible recovery phase.
With strong growth signals returning from March 31 onwards and new infrastructure coming online, RLUSD could be setting itself up for a run at new all-time highs in the months ahead.
