May 30, 2024

Solana welcomes PayPal’s PYUSD: Will it help SOL prices?

AMB Crypto

  • PayPal has launched its stablecoin on Solana, a year after debuting it on Ethereum.
  • The price of SOL declined, along with its volume.

Solana [SOL] has witnessed a massive surge in activity since the beginning of the year. However, growth on Solana stagnated over the last few days.

New developments

The newly launched stablecoin on Solana could reinvigorate interest in the network going forward. Payments giant PayPal’s stablecoin PYUSD is coming to Solana almost a year after first debuting on the Ethereum blockchain.

The launch could bring new interest to a modestly sized crypto asset that hasn’t caught fire despite its name-brand backing.

PayPal’s official announcement highlighted Solana’s capability to handle a high volume of transactions quickly and at very low costs as a primary reason for bringing PYUSD to the network.

Solana has emerged as the leading blockchain for tokenized transactions and stablecoin transfers, according to blockchain analytics platform Artemis. PayPal noted that Solana offers significant benefits for commerce use cases.

PayPal launched its stablecoin, PYUSD, last August, becoming one of the first major US financial firms to do so despite regulatory uncertainties.

The stablecoin aimed to streamline virtual payments by enabling fast value transfers, remittances, and international transactions. It was designed to facilitate direct flows to developers and creators, aligning with PayPal’s broader digital asset expansion.

The introduction of PYUSD was welcomed by industry experts and competitors, including Tether CEO Paolo Ardoino.

However, the US Securities and Exchange Commission (SEC) later issued a subpoena to PayPal regarding its stablecoin initiative.

Beyond regulatory scrutiny, PYUSD faces stiff competition from established players like USDT and Circle USDC, which have market caps of $112 billion and $32 billion, respectively, while PYUSD’s market cap is around $400 million.

How is Solana doing?

At press time, SOL was trading at $166.79 and its price had fallen by 3% in the last 24 hours.

Moreover, the volume at which it was trading at declined by 12.01% during this period.

Source: Santiment

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