Solana approaches $160 as SOL-based stablecoin reaches $1 billion
After moving from Ethereum to Solana in May, PayPal stablecoin PYUSD crosses $1 billion.
Solana-based PYUSD has 64% market share over Ethereum's 36%.
Solana remains around $160 on Tuesday.
Solana's PayPal stablecoin (PYUSD) has surpassed $1 billion in market value, boosting on-chain demand. Solana's native token SOL is trading at $160 on Tuesday, unchanged after the announcement.
PYUSD demand in Solana boosts stablecoin above $1 billion.
PayPal debuted their Ethereum stablecoin in August 2023 and added PYUSD to Solana in May 2024. Liquid assets back PYUSD, which may be exchanged for USD. On Monday, Solana tweeted that PYUSD market capitalization reached $1 billion. The SOL network controls 64% of the stablecoin market.
Since stablecoins are fiat on/off-ramps, PYUSD reaching $1 billion is a milestone for traders. Stablecoin market share on Solana represents retail demand.
Solana network is PYUSD's main chain, and token incentives increase its adoption in DeFi protocols like Kamino Finance and Syndica.io.
According to Artemis, PYUSD supply travels inside the Solana network for a fraction of Ether's cost. On Solana, peer-to-peer PYUSD transactions average a tenth of a penny.
Solana may rise double-digits.
Solana has been rising around $160 for years. The cryptocurrency is trading at $156.92 and may rise 11.75% to $175.39, a major resistance level for Solana as it corresponds with the upper border of the Fair Value Gap (FVG) between $172.91 and $175.39.
SOL must overcome $160.09, the 50% Fibonacci retracement of the drop from its March 18 peak of $210.18 to the August 5 low of $110, before hitting the FVG.
SOL is positive according on momentum indicators MACD and RSI. SOL's RSI is 55.48, indicating price strength. Green MACD histogram bars above the neutral line indicate Solana's daily price momentum is positive.
If the cryptocurrency price corrects, Solana may find support in the Fair Value Gap (FVG) between $154.08 and $155.25.
