- PayPal and Stripe partnership accelerates Solana’s ecosystem growth.
- Platforms like pump.fun facilitate network activity.
- Statistics show that developers and users are actively participating in Solana.
Solana is seeing growing ecosystem growth thanks to its technology development and key partnerships. In particular, two giants in the financial industry, PayPal and Stripe, have integrated Solana into their payment systems.
This integration is part of a broader trend that shows confidence in the Solana network from both institutional and retail sectors. Retail investors are driving traffic to platforms like pump.fun, which has collected millions of dollars in fees in the past few months.
Solana’s institutional adoption and ecosystem growth
The Solana ecosystem is growing, and the numbers show it. On Thursday, July 18, the Solana Foundation highlighted a report on the Solana ecosystem by Mesari analyst Peter Horton, which explores key partnerships and platforms driving Solana’s growth.
PayPal and Stripe both integrated Solana into their platforms in Q2 2024. First, PayPal expanded its PYUSD stablecoin to the Solana network. Meanwhile, Stripe announced support for payments on Solana. Both companies wanted to leverage Solana’s scalability and low fees to make their platforms more efficient.
Some Solana native platforms also saw significant growth, most notably the Mimecoin Launchpad Pumpfun. The platform, which helped launch the dubious Mimecoin with a number of high-profile names, raised $48 million in total fees this quarter.
Will Solana’s TVL drop or go down?
A major beneficiary of pump.fun’s success was Raydium, Solana’s largest decentralized exchange (DEX). With the influx of activity from pump.fun, Raydium’s average daily volume grew 77% quarter-over-quarter, reaching $867 million. This increased volume contributed to a 46% increase in Raydium’s total value locked (TVL), reaching $991 million.
While Raydium TVL grew in memecoins, Solana’s total TVL in dollar terms decreased. Solana’s total locked value (TVL) in USD terms decreased by 9% quarter-over-quarter in Q2 2024, reaching $4.5 billion, ranking it 4th among blockchain networks. However, this decrease was primarily due to a drop in token price rather than a decrease in capital outflows. In contrast, TVL denominated in Solana’s native token, SOL, actually increased by 26% quarter-over-quarter.
This figure shows that despite the slight decline in TVL, the underlying investment and participation within the Solana ecosystem remains strong. This suggests that users and developers are continuing to engage with Solana’s DeFi protocol, paving the way for further growth.
On the other side
- In Q2, Solana made several technical improvements, including Solana Actions and Blockchain Link (Blink), which allows for direct transactions on websites like Twitter.
- Solana also introduced a stake-weighting system to alleviate ongoing network congestion issues, but this system has been criticized for its impact on decentralization.
Why this matters
The integration with PayPal and Stripe increases Solana’s credibility and makes it more attractive to other institutional investors considering blockchain adoption.
Learn more about Solana’s latest trends:
Why Solana Became the Home for the Memecoin Token Launch
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