The rise is fueled by the success of its memecoin creation platform, pump.fun.
Solana is the fifth most important cryptocurrency on the market.
The cryptocurrency Solana (SOL) surpasses PayPal, one of the world’s leading online payment systems, in terms of market capitalization.
In the last week, the price of the Solana digital network increased above 8% and Its price at the time of publication of this note is 180 dollarsleaving behind the historical resistance at the $175 line.
The increase in its price raised its market capitalization to more than $85 billion and in this way he surpassed PayPal, which is currently valued at 81 billion dollars.
The market capitalization of a company represents the total value of all its outstanding shares and is calculated by multiplying the current price of a share by the total number that are outstanding in the market. This is an important metric for evaluating the relevance and value of a company.
In cryptocurrencies, it is also a key indicator as it reflects the size and position of the asset in the market.
Thanks to the good performance of the last month, SOL not only surpassed PayPal in this item but is more valuable than Moody’s, Xiaomi and CME Group, the operator of the Chicago Mercantile Exchange.
Although the SOL network suffered several interruptions in its history, impacting traders and operations within its ecosystem, activity on the platform has shown a notable increase since then.
Despite these inconveniences, which generated concern among its community about the stability and security of the project, The market continues to choose Solana for the speed of its transactions and the low gas rate costs..
In your website It is highlighted that 3,072 transactions are carried out per second and the fees for developers and users remain below $0.0025 dollars, which is equivalent to 0.14 SOL. In addition, it has 29 million active accounts, which reflects a sign of the use and popularity of the network.
According to the PayPal official pageit stands out that the platform has more than 400 million active users around the world. However, in the case of the electronic payment service provider, transactions usually have delays of hours or even days and their commission costs are higher, compared to those of Solana.
According to a report by StatistaIn 2023, PayPal processed a total of 25 billion payment transactions globally. This data not only represented an increase of almost 3,000 million transactions compared to the previous year but was the highest figure of the period studied (2012-2023).
What drives the use of Solana?
Likewise, while PayPal is nothing more than a payment platform, another factor that drives the use of Solana are the applications and projects that are built on it such as pump.fun, the memecoin creation platform.
As CriptoNoticias already reported, meme cryptocurrencies are tributes to a pet, celebrity or political figure that do not solve any problem and are used mostly for financial speculation. That is why its price can go up or down in a matter of seconds without any justification.
According to data from Dune Analyticssince the emergence of that project in the Solana ecosystem in February 2024, more than 2 million tokens that generated more than 1 million SOL, the equivalent of more than 192 million dollars.
According to CoinGecko datathe market capitalization of these Solana tokens exceeds $12.4 billion, slightly larger than ADA’s market capitalizationCardano’s native cryptocurrency, which is $12,383 million.