PayPal's USD stablecoin, PYUSD, has seen a significant increase in circulation, reaching over $3.8 billion. This marks a growth of approximately 224% over the past three months, driven by decentralized finance (DeFi) protocols and incentives. PYUSD is now the sixth-largest stablecoin globally, trailing only World Liberty Financial's USD1. Decentralized protocol Ethena has emerged as the largest holder of PYUSD, possessing about $1.2 billion through the custodian Copper. This development highlights the growing adoption and integration of PYUSD within the DeFi ecosystem.