Payment platform, PayPal, has unleashed its US-backed cryptocurrency stablecoin on an additional blockchain as it seeks to grow its market share within the stablecoin market.
The payment processing giant originally unveiled its PYUSD stablecoin on the Ethereum blockchain but added it to the Solana blockchain as of May 29, 2024.
As of now, Nigerians with cryptocurrency wallets can purchase PYUSD on both Ethereum and Solana blockchains. PayPal has taken the agile decision to launch PYUSD on a second blockchain due to a string of beneficial features offered by Solana.
All of which align with PayPal’s commitment to fast, versatile, and secure user experiences.
How does the Solana blockchain differ from Ethereum?
Those unfamiliar with the Solana blockchain will be interested to know that the Solana blockchain can process as many as 65,000 transactions every second, with transactions costing only $0.0025.
This is a stark contrast with Ethereum, where only 15 transactions can be handled every second, with fees costing anything from $1 to $50.
PayPal has a proud track record when it comes to providing swift, cost-effective transactions for businesses and consumers worldwide. Whether it’s purchasing goods and services from e-commerce platforms or facilitating instant cashouts to give iGaming players faster access to online casino winnings, this e-wallet has successfully established itself as a credible alternative to paying with debit cards and potentially exposing sensitive bank account details online.
Jose Fernandez da Ponte, senior vice president of blockchain at PayPal, issued a statement about PayPal’s decision to expand its stablecoin onto the Solana blockchain. Da Ponte said the move will fast-track its aim of establishing a legitimate cryptocurrency of stable value for use in the world of e-commerce and other digital payments.
The Solana blockchain has shot to prominence in the last couple of years, cementing itself as a credible, next-generation version of the Ethereum blockchain. According to data from crypto analytics firm, Artemis, Solana handled stablecoins to the tune of $1.5 trillion in the last 12 months – almost twice the $885 billion handled on the Ethereum blockchain.
Solana’s rise hasn’t been without its challenges though. There have been instances of network outages, when the blockchain was inaccessible for as long as five hours in February. At the time of writing, Solana’s team are working to release an update for its platform to improve its uptime and general stability.
More about PYUSD and stablecoins in general
PayPal’s original PYUSD stablecoin was launched in August last year on the Ethereum blockchain as an ERC-20 token. Every PYUSD token is backed by fiat US dollar deposits, as well as short-term treasury and cash equivalents.
PYUSD is bidding to keep pace with the two alternative stablecoins in the crypto space right now. Tether USDT is comfortably the most used US dollar-backed stablecoin, with many Nigerians using this to gain crypto-based exposure to the US fiat currency. Almost three-quarters (70%) of all stablecoin transactions are made using USDT right now.
Tether’s market cap is approximately $111 billion, while PYUSD currently stands are around $273 million. All of which suggests PYUSD has plenty of work to do, but a switch to Solana could accelerate those bold ambitions.
