PayPal’s $400M Investment Boosts SOL Price by 8% on Solana Blockchain
The price of Solana (SOL) surged by 8% and briefly surpassed the $151 mark on June 17. This surge followed the integration of PayPal’s PYSUSD stablecoin into the SOL DeFi ecosystem. This integration aims to leverage Solana’s high-speed and low-cost transaction capabilities, enhancing the usability of PYSUSD for everyday transactions and expanding its reach within the cryptocurrency ecosystem.
Overview of the PayPal Partnership
PayPal’s PYSUSD stablecoin has a global market capitalization of $400 million, significantly less than industry giants like Tether (USDT) and Circle’s USDC, which have a combined valuation of $200 billion.
The decision to integrate PYSUSD into Solana and Injective’s blockchain is part of PayPal’s strategy to increase the adoption of PYSUSD by making it available on more efficient and scalable blockchains.
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While the news of PayPal’s partnership with Solana was initially announced on May 29, it did not have a significant impact on market activity at the time due to bearish headwinds from the Ethereum ETF approval and negative swings in the latest US macroeconomic indices.
$100 Million LONG Position
However, SOL began to gain significant traction on June 14 as bullish investors entered the market, leading to a mild bullish reversal over the weekend, briefly reclaiming the $150 territory.
Currently, the majority of speculative traders are anticipating bullish performance in the week ahead, with Solana bulls securing $108.37 million worth of leverage LONG positions, surpassing the SHORT positions by over $26 million, indicating control of the short-term market momentum.
$150 Resistance Varying Large
Despite the recent surge, Solana’s price might encounter resistance around the $155 level due to growing bearish sentiment in the broader crypto market. The majority of active SHORT contracts in the Solana futures markets have been positioned around the $155 price level, with bear traders potentially facing significant losses. The $140 level is likely to serve as short-term support to avoid potential liquidation losses.
In summary, Solana’s price is likely to consolidate within the $142 – $153 range as the market awaits the next major trend catalyst.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
