More than 90% of the total issuance of the stablecoin PYUSD from the payment giant PayPal is still on the balance sheet of its issuing company Paxos. This is stated in the report of Nansen analysts.
According to them, only 7% of the coin supply lies in user wallets linked to the Kraken, Gate.io and Crypto.com exchanges.
Nansen attributed the low interest in the asset to the fact that PayPal is targeting a different demographic.
“We are seeing a lack of demand for PYUSD from cryptocurrency users when there are other alternatives,” the analysts noted.
Fewer than ten holders who are not smart contracts or exchanges have more than $1,000 in stablecoin balances.
The largest PYUSD holder in this category holds the equivalent of around $10,000 and bought the token after selling three different memecoins.
Recall that on August 7, PayPal announced the launch of a stablecoin pegged to the US dollar based on Ethereum. The issuer of the coin was Paxos blockchain infrastructure company.
The asset caused a controversial reaction from members of the crypto community. Some considered that PYUSD promotes mass adoption of digital assets, others pointed to the risks of centralization.
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