Mega-cap crypto Solana (CRYPTO: SOL) has been skyrocketing of late. The volatility investors are used to with top cryptocurrencies has been amplified of late, driven by a number of macro factors taking most tokens higher.
Rising valuations among risk assets, including equities, has driven much of the bullish investor sentiment around crypto. With hawkish monetary policy on the horizon, investors are now pondering whether these headwinds are priced in.
For smart contract-enabled, proof-of-stake platform Solana, this has been a good thing.
Let’s dive into two of the catalysts investors are jumping on with Solana right now.
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Announcements from Solana Pay and Coinbase: Major catalysts to watch
Solana’s recent announcement of the launch of its Solana Pay platform is a big deal. This platform, launched in partnership with Solana Labs, is an attempt for Solana to leverage its lightning-fast, low-cost network to provide payments for merchants.
This blockchain reportedly has a stated capacity of up to 50,000 transactions per second right now. However, a series of network slowdowns have brought this number down significantly.
That said, Solana’s cost structure is attractive to users, particularly for small transaction sizes. This provides the key impetus for Solana to launch its Solana Pay product to entice small- and medium-sized businesses to allow crypto payments.
Additionally, recent news that Coinbase has allowed two SPL-based tokens to be listed is a first. Orca and Bonfida, two projects built on the Solana network, will be listed on the popular crypto exchange. This furthers the investment thesis for Solana as a layer-1 network worth owning.
Implications out of these two catalysts
These catalysts are a big deal for long-term investors looking at Solana. Indeed, the suggestion that this platform could be a leader in payments is, in and of itself, something to really think deeply about.
Solana Pay undoubtedly could become an omnipresent peer-to-peer payments platform. That’s something several other top tokens have sought to become.
What gives Solana Pay an edge over its competitors? There are two pointers to note.
First, the platform’s decentralized payment structure is blazingly fast owing to leveraging the SOL blockchain. Second is its ease of usage — as simple as enabling a barcode at the POS or on a merchant’s site.
As mentioned, Solana faces network disruptions and other issues. And while this network is ironing these out, investors should note that Solana isn’t a zero-risk platform. However, lately, this crypto’s potential seems to allow investors look beyond the near-term growing pains.
Additionally, the listing of SOL-based tokens on Coinbase comes as a first. Like any Coinbase listing, Orca and Bonfida will probably be in the spotlight.
Overall, these headlines are likely to drive more interest for Solana over the near term. For those bullish on this network, these are two more reasons to dive in.
