Paxos Trust Company has made history by temporarily placing the entire global debt on the Ethereum (ETH) network. Wednesday, during the Central North American session, Paxos beaten $300 trillion worth of PayPal USD (PYUSD) before being burned in an hour.
The incident stirred the crypto investors for a few minutes as PYUSD is backed by the US dollar at a ratio of 1:1 and Paxos is very considered as a renowned crypto company. Furthermore, the largest stablecoin Tether USDT has a market cap of just over $180 billion, while PYUSD has a fully diluted valuation of approximately $2.32 billion.
Ethereum benefits from the demand for stable coins
The Ethereum network has remained a DeFi powerhouse due to the growing adoption of stablecoins. According to market data analysis of DeFiLlamathe Ethereum network has a stablecoin supply of approximately $161 billion.
The Ethereum network’s biggest competitor is the Tron (TRX) chain, which at the time of writing had a stablecoin offering of around $78 billion. The Solana (SOL) network, which has already overtaken Ethereum in the number of daily active users, had a stablecoin offering of about $15.5 billion.
The demand for stablecoins is expected to grow exponentially in the near future, mainly fueled by the recent enactment of the GENIUS Act in the United States. Earlier this week, BlackRock CEO Larry Fink said noted that the crypto market will grow exponentially in the near future, fueled by the tokenization of real-world assets.
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