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The flagship stablecoin from Web3 fintech firm Paxos is now available on the Solana (SOL) blockchain.
So what does this mean for the ever-growing Solana ecosystem?
Paxos on Solana
The announcement was initially made on 22 December 2023 when the highly regulated New York-based firm declared itself as a “multi-chain stablecoin issuer” now that it would be able to offer its Pax Doller (USDP) stablecoin on the Solana blockchain, officially announcing that it went live on 18 January 2024.
With this, one of the best-known stablecoins is able to extend its offerings to Solana users who can now leverage the stablecoin on SOL for the first time. In joining Solana, USDP joins a network that is witnessing record levels of sustained transfer volumes and net inflows.
Reiterating this notion, the Solana co-founder noted in the original press release that Solana’s “high-performance network and low transaction fees” will give regulated financial products legitimacy on Solana, as well as give Paxos a new avenue to innovate and scale through.
Before this development, USDP was only available on the Ethereum network, which is another sign of things to come for Solana. Paxos is a major player in the space, and the decision to expand into Solana may hint at the Ethereum competitor’s future to come.
Stablecoins spike on Solana
The total number of stablecoin transfers has shot up drastically on Solana. As per data on Artemis, transfer volume sits at around $300billion, which is a 2,472.2% increase since the beginning of last year.
This increase coincided with major Solana-based airdrops such as Jito (JTO) and Bonk (BONK) which saw the price of SOL jump significantly, raising the market cap to a peak of over $50bn in late December 2023. Solana ranks fifth on CoinMarketCap with a market cap of $35m, with a current trading price of $81.70.
