Solana (SOL) experienced a robust surge in price and interest lately, sparking concerns about the sustainability of its rally. However, a recent development within the Solana ecosystem may solidify its bullish momentum.
On December 22, Paxos made a pivotal move by expanding to Solana and transitioning its stablecoin, USDP, from Ethereum. New York’s Department of Financial Services approved this move, granting public access to USDP on Sol from mid-January 2024.
1/🏛️Breaking News: Paxos Expands to Solana@Paxos, the leading regulated blockchain & tokenization infrastructure platform, will benefit from the high-performance architecture of Solana & plans to offer the USDP stablecoin to the public mid-Jan. 2024.https://t.co/PkFUByXcXb🧵 pic.twitter.com/NPKMR7EtL8
— Solana (@solana) December 22, 2023
Walter Hessert, Paxos Head of Strategy, highlighted the significance of supporting Solana: “Expanding our stablecoin platform to Sol is a crucial step in making stablecoins accessible for everyday consumers.”
Paxos, known for managing BUSD issuance until directed otherwise by NYDFS, experienced a substantial redemption of circulating BUSD. The firm also collaborates with Paypal for PYUSD stablecoin issuance.
Solana’s Stablecoin Surge: Price Up, Dev Decline
These developments are poised to impact stablecoin inflow on the Solana network positively. Recent data indicates a rise in Solana’s stablecoin market cap and growth. Notably, stablecoin inflow, particularly in December, surpassed previous months, marking the first consistent increase in several months.
As of the latest update, Sol is $110.39 USD with a 24-hour trading volume of $6,545,242,162 USD. Solana is up 14.94% in the last 24 hours. The trading volume for SOL also experienced a noticeable spike during this timeframe.
Contrastingly, there’s been a notable decline in development activity within the network. During this period, there’s been a significant decrease in contributions to Solana’s GitHub, indicating a reduced frequency of developer involvement compared to previous times.
Related Reading | Chainlink Bold Move: Bridging Finance with Blockchain