What happened
The Solana (SOL -6.60%) cryptocurrency is having a sunny day on Tuesday. The blockchain-based decentralized finance (DeFi) platform launched a new payment processing system. Furthermore, cryptocurrency trading giant Coinbase Global (COIN 5.68%) listed market data for Solana-based tokens for the first time. Together, these bullish tidbits added up to a 24-hour gain of 14.1% at 1:25 p.m. ET today.
So what
First, the Solana Labs organization launched a payment system called Solana Pay. This platform lets retailers and other merchants accept payment in the form of Solana's namesake token, other cryptocurrencies based on the Solana blockchain network, and the USD Coin (USDC 0.01%) stablecoin. Transactions will reportedly be instant and carry minimal transaction fees.
"If people can seamlessly transact on-chain just like they do with cash, we believe that will spur interest and create new innovations, which is why the protocol is designed to allow for developers to build new commerce experiences on top of it," Solana Labs representative Sheraz Shere told The Block, a cryptocurrency news website.
Meanwhile, in another corner of the cryptocurrency industry, Coinbase quietly introduced market data for two Solana-based tokens to its trading platform. You can't trade the Bonfida and Orca cryptocurrencies on Coinbase yet, and perhaps that day never comes. But you can send Orca and Bonfida tokens to your Coinbase account now, while the company's website and mobile apps let you track the market value and performance of these DeFi tokens in real time. Buying and selling them may or may not follow later.
Image source: Getty Images.
Now what
Solana's price is rising today because the cryptocurrency provided two separate pieces of evidence that its platform can be applied to real-world uses. The Solana Pay system could unlock significant value if it finds traction with retailers and e-commerce vendors, though it's up against some tough competition for that gig, and it's hard to say how far that effort will go. Stay tuned.
Coinbase's first support for Solana-based DeFi tokens could turn out to be the bigger story in the long run -- in case Orca and/or Bonfida evolve into the sophisticated digital finance platforms they were designed to be. Again, Solana's first Coinbase-bound assets face serious competition in their chosen subsector. If nothing else, this introduction gives Solana a foot in the door to bring more tokens into the Coinbase ecosystem.
My crystal ball is in for repairs, so there's no telling how this will work out quite yet. But you can't win if you don't enter the race. These early attempts could give Solana a leg up on the competition.
