USD1 Overtakes PayPal’s PYUSD as Stablecoin Race Heats Up

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Key Highlights

World Liberty Financial’s USD1 stablecoin has overtaken PayPal’s PYUSD by market cap, marking a notable shift in the stablecoin landscape. In an X post on Friday, Eric Trump highlighted the milestone, framing the growth as part of a broader push to build a global digital dollar infrastructure.

According to CoinMarketCap data, USD1’s market capitalization climbed to roughly $4.09 billion, surpassing PYUSD’s $3.7 billion, while trading volume surged sharply over the past 24 hours.

https://twitter.com/EricTrump/status/2014726873146691877?ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener

A rapid climb powered by utility, not branding

USD1’s growth hasn’t been accidental. World Liberty Financial recently added real on-chain utility by launching lending and borrowing markets with Dolomite, letting users earn yield or borrow directly inside the USD1 ecosystem.

That functionality is showing up in the data. USD1’s 24-hour volume has surged past $6.1 billion, dwarfing PYUSD’s roughly $171 million and pointing to active use across exchanges and DeFi, not just idle balances.

Exchange incentives add fuel

Momentum picked up after Binance launched a $40 million WLFI rewards campaign for users holding USD1 across spot, margin, and futures. Weekly airdrops turned simple balances into yield-like positions, boosting liquidity and keeping capital parked during the program.

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History shows this kind of exchange-led push can scale a stablecoin fast, especially when it’s paired with real DeFi uses that give holders a reason to stay put.

How USD1 pulled ahead of PYUSD

PYUSD launched with strong brand recognition and direct access to PayPal’s payment rails. On-chain, though, it has moved carefully, with fewer DeFi integrations and slower turnover.

USD1 took the opposite route, pushing hard into DeFi, exchange campaigns, and yield-driven liquidity. That approach appears to be clicking with traders and yield hunters, even as the regulatory picture around stablecoins continues to shift.

Bigger implications for the stablecoin market

The shift highlights how the stablecoin race is changing. Name recognition matters less than real usage, yield, and where a token actually works across trading and DeFi.

PYUSD is holding close to its dollar peg at $0.9995, with a market value around $3.7 billion and daily trading volume near $171 million. The numbers suggest steady demand, but far less on-chain activity than faster-growing, incentive-heavy rivals. If USD1 can keep liquidity once incentives cool and keep building everyday utility, it may stick as more than a quick challenger.

Also Read: Ripple’s Stablecoin Is Now Live on Binance for Trading

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