According to The Block, the total stablecoin supply has been declining since mid-2022.
The supply of stablecoins has fallen about 12% so far in 2023, from $139 billion at the beginning of the year to $122 billion in August.
Some analysts believe that slump may be about to change, especially with PayPal entering the industry.
Mark Lurie, CEO of Shipyard Software, believes that if Paypal can prove a use case for stablecoins, not only will its utility become undeniable.
And other traditional financial institutions will also face competitive pressure to adopt stablecoins, and Paypal’s move may become a major catalyst for stablecoin adoption.