Solana Price Drops 5% After Paypal PYUSD Hit The $1Billion Mark: Will it Switch?
Paypal PYUSD is now the fifth largest stablecoin after hitting the $1 Billion market cap. Being a stablecoin, it is backed by the US dollar and maintains its value around the $1 mark. And now, with the continuous growth in the market, it has beaten the USDD and True USD. More importantly, the Solana network is the primary blockchain for this stablecoin. However, despite its recent milestone, the Solana price did not cater to the hype. Instead, an almost 5% drop is seen in the token price.
Analzing Solana Price Under Paypal PYUSD Influence
Solana is among the top five cryptocurrencies of the market with a history of high gains, which is eventually maintaining its hype despite its long-term average performance. The SOL price is currently $154.10 after a 4.27% drop in the last 24 hours, whose impact is also visible in the market cap, which is down to $71,701,311,951. However, the 22% surge in trading activity indicates the positive impact of the Paypal PYUSD.
Earlier, PayPal PYUSD introduced the interest reward, which became a significant feature in its market cap’s growth. However, despite Solana-based PYUSD’s market share being 64%, the impact on the SOL’s price was unexpected. The single best performance was almost three years ago, which pushed the Solana price to $260.06. However, since then, SOL has failed to surge anywhere near that.
The last best performance other than ATH was during April 2024, when the token achieved the $202.87 mark before declining due to market trends. Now, the eyes are on the upcoming bull run to surge the altcoin prices, including the Solana’s.
Will Solana Switch To An Uptrend Anytime Soon?
On the weekly charts, Solana is still in the 5.22% surge, but today’s almost 5% drop has been disappointing despite Solana-based stablecoin’s achievement. It has been under consolidation for the past three days, with the first resistance at 190.01, followed by 207.21 and 235.05. Moreover, the SOL is stuck below the Piovot and has newly bounced above the support at 134.33.
If the altcoin continued towards the resistance, breaking the first barrier, it might follow the uptrend. Moreover, with the increased trading activity, the buying pressure is high on the altcoin, which signals at the upcoming gains. However, with the increased volatility in the market after Pavel Durov faced 12 criminal charges, the consolidation is dominating.
A surge in the Solana price may happen in the long term with the upcoming interest rate cuts in September, as Jerome Powell affirmed FED rate cuts. The impact of this revelation was on all the cryptocurrencies, including Bitcoin, Ethereum, and even Solana. So, a major boost might be seen, once it gets implemented.
Final Thoughts
Solana’s value has been under consolidation for days now. Surprisingly, the PYUSD hitting the $1 Billion market cap had no impact on the Solana price, disappointing its holder after a long due to an uptrend. However, with the surged buying pressure on the token and upcoming FED rate cuts, an uptrend might happen. This will push Solana’s value toward the $200 goal.
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