PayPal has jumped the stablecoin bandwagon by introducing its new token on the Solana blockchain. According to a Bloomberg report, PayPal Holdings Inc. is bringing its PayPal USD token on Solana, which is well-liked by memecoin issuers. The online payments startup introduced PYUSD, a dollar-pegged currency, on the Ethereum blockchain in August and then included it in its peer-to-peer Venmo payments service in September.
PayPal's venture into cryptocurrencies has made the firm a part of a larger financial diaspora that is actively accepting digital assets.
Jose Fernandez da Ponte, senior vice president of PayPal's blockchain, cryptocurrency, and digital currency group in San Jose, California, claims that Solana's quickness and inexpensive transaction costs drove the corporation to the blockchain. He adds,
"Making PYUSD available on the Solana blockchain furthers our goal of enabling a digital currency with a stable value designed for commerce and payments."
Solana's Popularity Drives Higher Activities
A gain in traction in the crypto world has also ensured that the Solana network's popularity sees great heights. Blockchain statistics tracker SolanaFM reports that Solana is now measuring 1,423 transactions per second (tps).
Moreover, Bloomberg in its report further highlights that according to data provider Chainspect, Ethereum handles between 12 and 15 transactions each second. Memecoins like Slerf, Boom of Meme, Snap, and Dogwifhat are driving activity on decentralized exchanges, and trading volume on Solana's blockchain has reached its greatest level in over two years, according to data collated by CoinMarketCap and DEX Screener.
One of the top-performing cryptocurrencies over the last 12 months has been Solana (SOL). The majority of these gains occurred as a result of investors applauding Solana's contribution to the meme coin market as Bonk rose from obscurity to become one of the largest tokens in the market.
Once more, the recent spike in Solana prices is linked to Wen, a relatively new meme coin that is generating a lot of buzz in the cryptocurrency space. It became the market's best-performing cryptocurrency as a result. The market capitalization of the digital asset also surged to more than $161 million as it leaped.
Why Are People Choosing Stablecoins?
Because of their stability, stablecoins are essential to the cryptocurrency ecosystem. Among the many advantages of cryptocurrencies like Bitcoin and Ether is the ability to transmit money to anybody, anywhere, at any time without needing to put your faith in a middleman.
But their costs are erratic and subject to large fluctuations, which makes them difficult to use daily. Stablecoins like PayPal USD (PYUSD), Tether USDT, and STASIS EURO (EURS) link the value of cryptocurrencies to more reliable assets, typically fiat currencies, to combat these price swings. This stability promotes their acceptance in frequent transactions and attempts to preserve their worth over time.
