Solana, ranked as the fourth-largest blockchain based on total value locked (TVL), is emerging as a top network for institutional adoption. Financial institutions are increasingly looking to integrate with the Solana blockchain to ensure the future success of their offerings, as stated by Robinson Burkey, co-founder and chief commercial officer of Wormhole Foundation.
In a research note shared with Cointelegraph, Burkey highlighted that on May 28, PayPal made a significant move by expanding its PayPal USD (PYUSD) stablecoin to the Solana network. This marks PayPal’s first venture onto a blockchain outside of the Ethereum ecosystem. This integration will allow Solana users to conduct cost-effective transactions using PYUSD, enhancing the stablecoin’s usability for everyday purchases.
In September 2023, global payments giant Visa introduced USD Coin (USDC) on the Solana blockchain, making it the second network apart from Ethereum to support the stablecoin. Solana stands out as one of the most scalable blockchain networks, capable of handling large transaction volumes. With a theoretical throughput of up to 65,000 transactions per second (TPS) and an average transaction cost of $0.0025, Solana surpasses Ethereum’s 15 TPS and offers significantly lower gas fees, which can range from above $1 to up to $50 during network congestion.
Ran Goldi, the vice president of payments at Fireblocks, noted that Solana’s infrastructure is well-equipped to integrate with traditional payment institutions, paving the way for increased institutional adoption. Goldi also suggested that incorporating a confidential transfers feature could attract more institutional partnerships for Solana.
According to data from DefiLlama, Solana currently ranks as the fourth-largest blockchain network with over $4.7 billion in TVL, representing 4.49% of the total TVL across all blockchains. Looking ahead, Tristan Frizza, the founder of Zeta Markets, believes that Solana’s (SOL) could be the next cryptocurrency to have a spot exchange-traded fund (ETF). Frizza highlighted the potential for a Solana-based ETF, citing its scalability and decentralized blockchain approach as key factors driving investor interest.
The possibility of a Solana-based ETF gained traction in January when Franklin Templeton, a trillion-dollar asset manager, commended Solana for its innovative blockchain scaling solutions. Crypto investor and CNBC Fast Money trader Brian Kelly also speculated that Solana could be the next cryptocurrency to have a spot ETF in the United States.