Circle vs PayPal: Market Positioning of USDC and PYUSD Stablecoins
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: NASDAQ.COM
- Market Share Comparison: As of January 21, 2026, Circle's USDC commands a 24% share of the global stablecoin market with a circulation of $73.7 billion, establishing itself as a key player in the crypto economy, second only to Tether.
- User Base Differences: USDC is primarily targeted at active crypto users, facilitating cross-chain transactions and DeFi protocols, while PYUSD is designed for PayPal and Venmo users, offering a seamless digital asset experience that attracts a large base of traditional finance users.
- Yield Comparison: USDC typically yields around 3.5% APR through DeFi protocols, while PYUSD offers a slightly higher 3.75% APR directly within the PayPal app, although both aim to maintain a 1:1 value to the dollar, PYUSD provides a more user-friendly experience.
- Adoption Status: Despite launching PYUSD in August 2023, its market cap remains at $3.7 billion, indicating a low acceptance rate in the stablecoin market, as PayPal aims to leverage its vast user base to enhance PYUSD's utilization.
Analyst Views on PYPL
Wall Street analysts forecast PYPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PYPL is 72.86 USD with a low forecast of 51.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
29 Analyst Rating
6 Buy
19 Hold
4 Sell
Hold
Current: 56.600
Low
51.00
Averages
72.86
High
100.00
Current: 56.600
Low
51.00
Averages
72.86
High
100.00
About PYPL
PayPal Holdings, Inc. offers a technology platform. The Company’s products are designed to enable digital payments and simplify commerce experiences for consumers and merchants to make selling, shopping, and sending and receiving money simple, personalized, and secure, online or offline, including mobile. It provides consumers with a digital wallet that enables them to send payments to merchants securely using a variety of funding sources, which include a bank account, a PayPal or Venmo account balance, its consumer credit products, a credit card, a debit card, certain cryptocurrencies, or other stored value products. It operates a global, two-sided network at scale that connects consumers and merchants with 434 million active accounts across approximately 200 markets. Its brands include PayPal, Braintree, Venmo, Xoom, Hyperwallet, PayPal Zettle, PayPal Honey, and Paidy. It offers financing products through the PayPal Working Capital (PPWC) and PayPal Business Loan (PPBL).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
