Nansen flags weak demand for PayPal’s PYUSD

More than 90% of the total supply of PayPal’s PYUSD stablecoin remains on the balance sheet of the issuing company Paxos. This is stated in отчете by Nansen analysts.

According to their data, only 7% of the coin’s supply is held in user wallets linked to exchanges Kraken, Gate.io and Crypto.com.

Nansen attributes the low interest in the asset to PayPal targeting a different demographic.

“We are observing a lack of demand for PYUSD from cryptocurrency users when there are other alternatives,” the analysts noted.

Less than ten holders—who are not smart contracts or exchanges—hold more than $1,000 in PYUSD on their balance sheets.

The largest holder of PYUSD in this category holds the equivalent of about $10,000; he bought the token after selling three different meme coins.

In August, PayPal announced the launch of a USD-backed stablecoin based on the Ethereum blockchain. The issuer of the coin was the blockchain infrastructure company Paxos.

The asset has elicited a controversial reaction from participants in the crypto community. Some believed PYUSD would facilitate widespread adoption of digital assets, while others pointed to centralization risks.