The Solana logo and a representation of the cryptocurrency displayed on a phone screen are seen in this file photo taken on Aug. 21, 2021 in Krakow, Poland.
Jakub Porzik | NurPhoto Getty Images
Solana's blockchain native token jumped on Tuesday visa announced that it will expand its stablecoin capabilities to Ethereum alternatives.
Solana Sol The token was last up more than 5% at $20.50, according to Coin Metrics. Other cryptocurrencies have changed little Bitcoin below the flat line at $25,803.25 and Ether Slightly higher at $1,640.06.
The move comes after Visa announced it will introduce USDC stablecoin coverage to the Solana network. The payments giant said in a statement that the development could help “improve the speed of cross-border payments and provide a modern option for our customers to easily send or receive funds from Visa's coffers.”
Solana is one of the few networks aiming to compete with Ethereum. It is loved among developers who may choose to build applications on it instead of Ethereum due to its speed and cost-effectiveness. This annual gain is one of the largest in the crypto market at 101%.
The announcement follows the launch of PayPal's company-branded stablecoin, PayPal USD. The company said PayPal USD's function is to reduce friction for payments during experiences in virtual settings and enable direct flows for developers.
Visa has been experimenting with USDC, the second-largest stablecoin in the market, since 2021, experimenting with how it can be used in treasury operations to make currency conversions in cross-border payments shorter and cheaper.
Bernstein called stablecoins the “killer application” of cryptocurrency and pegged them as a nearly $3 trillion market over the next five years.
“We expect major global financial and consumer platforms to issue co-branded stablecoins to power the exchange of value on their platforms,” Bernstein said. “We expect tokenized stablecoins to be a $2.8 trillion market led by regulated, land-based stablecoins.