Understanding PayPal USD (PYUSD)
PayPal USD (PYUSD) is a stablecoin fully backed by U.S. dollar deposits, short-term U.S. Treasuries, and similar cash equivalents. Issued by Paxos Trust Company, it is designed to maintain a stable value pegged to the U.S. dollar, aiming for a 1:1 ratio. This digital currency enables seamless transactions, both online and offline, leveraging the extensive PayPal network for transfers and payments.
The value of PYUSD is intended to remain consistent, providing a reliable digital dollar for everyday use. Its price typically hovers very close to $1.00, with minor fluctuations occurring due to normal market dynamics. This stability makes it a popular choice for individuals and businesses seeking to avoid the volatility commonly associated with other cryptocurrencies.
As a regulated stablecoin, PYUSD operates within established financial frameworks, offering users a sense of security and trust. Its integration into the PayPal ecosystem allows millions of users to easily buy, sell, hold, and transfer the asset, bridging the gap between traditional finance and the digital asset space.
Current PYUSD Market Snapshot
- Current Price: $0.99976081
- 24h Change: -0.01%
- 24h Low: $0.99937239
- 24h High: $1.00028916
- Market Cap: $870.909 Million
- 24h Trading Volume: $19.334 Million
- Circulating Supply: 871.117 Million PYUSD
This data provides a real-time overview of PYUSD's performance, reflecting its high level of price stability. The minimal percentage changes and tight trading range around one dollar are characteristic of a well-managed stablecoin.
Detailed Price History and Performance
Tracking the historical performance of an asset is crucial for understanding its behavior. PYUSD, while designed for stability, has experienced slight deviations from its peg since its launch.
- All-Time High (ATH): $1.05808042 (Achieved on August 29, 2023)
- All-Time Low (ATL): $0.97426807 (Achieved on September 1, 2023)
These historical extremes often occur during periods of initial market adoption or during broader moments of volatility in the digital asset markets. However, the protocol's design and reserves work to quickly correct these deviations and return the price to its $1.00 peg.
Recent performance trends show consistent stability:
- Change (1h): +0.019%
- Change (24h): -0.005%
- Change (7d): +0.017%
- Change (30d): +0.003%
Key Market Metrics Explained
Beyond the price, several metrics are vital for assessing PYUSD's position in the market.
Market Capitalization: Valued at approximately $870.9 million, market cap represents the total U.S. dollar value of all circulating PYUSD tokens. It is a key indicator of the scale and adoption of the stablecoin.
24-Hour Trading Volume: At over $19 million, this figure represents the total value of all PYUSD trades conducted across various exchanges in the past day. Higher volume generally indicates greater liquidity, making it easier to buy or sell large amounts without significantly affecting the price.
Circulating Supply: This refers to the number of PYUSD tokens currently available and circulating in the market. The supply can change as new tokens are issued or redeemed based on user demand, always backed by corresponding reserves.
How to Analyze PYUSD Price Charts
Reading a price chart is essential for any investor or user. For a stablecoin like PYUSD, the chart will appear predominantly flat, with a horizontal line oscillating very closely around the $1.00 mark. The Y-axis (price axis) is typically zoomed in to show minute changes, such as $0.99 to $1.01, to make these small fluctuations visible.
When analyzing the chart, look for:
- Consistency: The price should consistently revert to the mean ($1.00).
- Volume Bars: Correlate trading volume spikes with any minor price movements.
- Bollinger Bands: These will be extremely narrow, indicating low volatility.
For those looking to conduct deeper technical or on-chain analysis, specialized tools and platforms can provide valuable insights. You can explore advanced charting tools to enhance your market analysis strategy.
Frequently Asked Questions
What is the current price of PYUSD?
The price of PYUSD is designed to be $1.00. Real-time pricing data shows it trading at approximately $0.9998, demonstrating minimal deviation from its peg. Prices are updated continuously on major cryptocurrency data aggregators and exchanges.
What is PYUSD's market capitalization?
PYUSD's current market capitalization is approximately $870.9 million. This value is calculated by multiplying the current price by the total number of tokens in circulation, representing the total value the market places on the asset.
What was the 24-hour trading volume for PYUSD?
In the last 24 hours, the global trading volume for PYUSD reached $19.334 million. This volume reflects active trading across various digital asset exchanges where the stablecoin is listed.
What is the total circulating supply of PYUSD?
The current circulating supply of PYUSD is 871.117 million tokens. This supply is dynamic and can increase or decrease as users mint new tokens by depositing U.S. dollars or redeem tokens for U.S. dollars.
What is the all-time high price for PYUSD?
PYUSD reached its all-time high price of $1.05808042 on August 29, 2023. This peak occurred shortly after its launch, a common period for new assets to experience initial price discovery.
What is the all-time low price for PYUSD?
The all-time low for PYUSD was $0.97426807, recorded on September 1, 2023. This minor de-pegging event was quickly corrected, and the price returned to its stable peg shortly after.
The Role of Stablecoins in the Digital Economy
Stablecoins like PayPal USD play a critical role in the broader cryptocurrency ecosystem. They provide a safe haven during market turbulence, allowing traders to exit volatile positions without converting back to traditional fiat currency. Furthermore, they serve as the primary medium of exchange for decentralized finance (DeFi) applications, enabling lending, borrowing, and earning interest on digital assets.
For everyday users, PYUSD offers a fast and efficient way to transfer value globally with low transaction fees compared to traditional wire transfers. Its integration with PayPal's vast merchant network also paves the way for more mainstream adoption of digital currency payments for goods and services. As the market evolves, understanding these fundamental assets becomes increasingly important for anyone participating in the digital economy. To get real-time market data and track its performance, using a reliable platform is key.