Solana (SOL) has seen a significant uptick in activity, driven by the rapid adoption of PayPal’s (NASDAQ: PYPL) U.S. dollar-pegged stablecoin (PYUSD) on its network.
Notably, Solana has overtaken Ethereum (ETH) as the primary network for PYUSD, with more than 51% of the stablecoin’s total supply now residing on the Solana blockchain.
This milestone is significant, especially considering that PYUSD initially launched on Ethereum in August 2023, where it quickly gained traction.
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However, since expanding to Solana in May 2024, the network’s unique advantages have led to a shift in PYUSD’s distribution.
Solana currently hosts approximately 377 million PYUSD tokens, compared to Ethereum’s 359 million. This rapid transition shows Solana’s ability to offer superior transaction speeds, lower fees, and more lucrative opportunities for yield farming compared to Ethereum.
Moreover, Solana-based decentralized exchanges (DEXs) like Jupiter and Orca have integrated PYUSD into their pools, offering depositors attractive annual percentage yields (APY).
Furthermore, Solana’s ecosystem has received the support of major DeFi platforms such as Kamino Finance, Drift Protocol, and MarginFi. These platforms have played a crucial role in driving PYUSD’s adoption on the network.
The competitive yields and the growing suite of DeFi services on Solana have made it a preferred choice for both retail and institutional investors, gradually diminishing Ethereum’s dominance in the stablecoin market.
ChatGPT-4o Solana price prediction
In this context, Finbold consulted OpenAI’s latest and most advanced artificial intelligence (AI) tool, ChatGPT-4, to offer insights into how Solana is likely to trade, considering key factors influencing Solana’s future price trajectory.
As of now, Solana is trading at $145.5, reflecting strong bullish momentum with a 12% increase over the past week.
With the network continuing to attract more users and projects, particularly due to the surge in PayPal’s U.S. dollar-pegged stablecoin (PYUSD) usage, Solana’s price is poised for further growth in both the short and long term.
In the short term, ChatGPT-4o predicts that Solana could reach $160 within the next few weeks. This projection is supported by the increasing PYUSD supply, ongoing market momentum, and Solana’s network advantages, such as lower transaction fees and faster processing times.
Looking further ahead, Solana could reach $200 to $210 by the end of 2024. This long-term forecast takes into account factors like technological superiority, ecosystem expansion, positive legal developments, significant growth in stablecoin usage, and potential institutional interest due to speculation around a Solana ETF.
However, it’s important to note that this prediction assumes continued growth in the adoption of Solana’s ecosystem, particularly in the DeFi space.
Any significant disruptions could affect Solana’s trajectory. Nevertheless, with the current momentum and the increasing migration of stablecoins like PYUSD to its network, Solana appears well-positioned for sustained growth, potentially making it one of the top-performing assets by the end of 2024
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
