Users now have the option to trade on Solana or Ethereum using PayPal’s PYUSD stablecoin, providing them with a platform-independent experience.
When it comes to expanding its stablecoin, PayPal USD, PayPal has decided to go outside of the Ethereum ecosystem and use the Solana blockchain.
The addition of PYUSD to the Solana network, which enables users to conduct transactions at a reduced cost, was announced on May 28. The goal is to increase the number of people who use the PYUSD stablecoin for everyday purchases and other modest transactions.
In contrast to Ethereum’s 15 transactions per second with higher fees—which may range from $1 to $50 amid congestion—Solana handles up to 65,000 transactions per second for as little as $0.0025. What this means is that a transaction on Ethereum may take several minutes to execute, yet the identical transfer on Solana could take less than a minute.
“Making PYUSD accessible on the Solana Blockchain furthers our aim of allowing a digital currency with a stable value tailored for trade and payments,” said Jose Fernandez da Ponte, executive vice president of blockchain at PayPal.
Users of the PayPal and Venmo wallets will enjoy a system that is independent of chains, which means that their PYUSD balances will remain unchanged no matter which network stores them.
Since last year, the Solana network has been the most popular blockchain for stablecoin transactions. Based to statistics from analytics platform Artemis, the amount of stablecoin transfers on Solana surpassed Ethereum’s volume by a wide margin, reaching $1.5 trillion over the last year.
There are problems with the Solana blockchain as well, the most common of which being frequent network disruptions. On February 9th, the most recent incident occurred, and for about five hours, transactions were unavailable. In the next months, Solana will get an update dubbed Firedancer, which will make it more reliable and scalable overall.
Cryptocurrencies that aim to keep their value steady by being linked to a more solid reserve asset, often a fiat currency like the US dollar, are called stablecoins.
In August 2023, PayPal and Paxos Trust Company announced their stablecoin. The stablecoin, which is backed by deposits of U.S. dollars, short-term Treasurys, and cash equivalents, was first released only on Ethereum as an ERC-20 token.
Tether has a market size of almost $111 billion and roughly 70% of the stablecoin market, according to data from DefiLlama. PYUSD has a market cap of $272.96 million.
Also Read: Tether has put an address with $3.5 million in USDT on a blacklist! May 29, 2024
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