- PayPal and Stripe’s partnerships drive Solana’s ecosystem growth.
- Platforms like pump.fun boost network activity.
- Figures show that developers and users are engaging with Solana.
Solana is increasingly seeing ecosystem growth thanks to technical developments and key partnerships. Notably, PayPal and Stripe, two financial industry giants, have integrated Solana into their payment systems.
These integrations are part of a broader trend, showing confidence in the Solana network , both institutionally and on the retail side. Retail investors are increasingly driving traffic to platforms like pump.fun, which collected millions in fees over the past few months.
Solana’s Institutional Adoption and Ecosystem Growth
Solana’s ecosystem is growing, and the figures show it. On Thursday, July 18, the Solana Foundation highlighted a report by Messari analyst Peter Horton on the Solana ecosystem. The report went through the key partnerships and platforms driving Solana’s growth.
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Both PayPal and Stripe integrated Solana into their platforms in the second quarter of 2024. For one, PayPal expanded its PYUSD stablecoin to the Solana network. Stripe , on the other hand, also announced its support for payments on Solana. Both sought to leverage Solana’s scalability and low fees to make their platforms more efficient.
Some Solana-native platforms have also seen significant growth, especially memecoin launchpad pump.fun. The platform, which helped many celebrities launch questionable memecoins , collected $48 million in total fees for the quarter.
Solana’s TVL Drops, Or Does It?
A major beneficiary of pump.fun’s success was Raydium, Solana’s biggest decentralized exchange (DEX). The influx of activity from pump.fun has boosted Raydium’s average daily volume by 77% quarter-over-quarter, reaching $867 million. This increased volume has also contributed to a 46% growth in Raydium’s Total Value Locked (TVL), bringing it to $991 million.
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While Raydium TVL grew on memecoins, Solana’s overall TVL fell in dollar terms. Solana’s Total Value Locked (TVL) in USD fell by 9% quarter-over-quarter to $4.5 billion in Q2 of 2024, ranking it fourth among blockchain networks. However, this decrease was largely due to token price depreciation rather than a reduction in capital outflow. In contrast, the TVL denominated in SOL, Solana’s native token, actually grew by 26% QoQ.
Source: Messari
These figures indicate that the underlying investment and engagement within the Solana ecosystem remain robust despite a nominal drop in TVL. They suggest that users and developers continue to engage with Solana’s DeFi protocols, setting it up for further growth.
On the Flipside
- In Q2, Solana made several technical improvements, including Solana Actions and Blockchain Links (Blinks), enabling transactions directly on websites like Twitter.
- Solana also introduced a stake-weighted system to mitigate ongoing network congestion issues . However, the system was criticized for its effect on decentralization.
Why This Matters
The integration by PayPal and Stripe enhances Solana’s credibility and attractiveness to other institutional players considering blockchain adoption.
Read more about Solana’s latest trend:
How Solana Became the Home of Memecoin Token Launches
Read more about a new crypto wallet with exciting features:
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