Solana (SOL-USD) is probably too cheap now. As of Apr. 18, it was $102.85 per share, down 42.4% year-to-date (YTD) from $178.52 at the end of last year. Given its move into cryptocurrency payments recently, SOL-USD could make a substantial move higher. Solana’s purpose is to facilitate the creation of decentralized apps (dApps). It helps developers create smart contracts, decentralized finance (DeFi) apps, and non fungible tokens (NFTs).
Solana claims to be the fastest blockchain in the world and the fastest-growing ecosystem in crypto. It has been moving into the wallet and digital payments arenas. The wallet initiative is based on the collaboration between Solana Labs and Web3Auth. It can eliminate technical obstacles for consumers to set up wallets and move into the DeFi space.
Solana Pay Could Boost SOL Crypto
In addition, Solana Labs announced the launch of Solana Pay. This is its first launch into digital payments, as described by CryptoPotato. The vision is that “digital money moves through the internet like data – uncensored and without intermediaries taxing every transaction.”
Consumers and merchants will be directly connected with no intermediaries in-between. The consumer would send a digital dollar currency, such as USDC, from their wallet directly into the merchant’s account. This would settle immediately with costs measured in fractions of a penny. The payments firm Circle and digital asset exchange FTX helped develop Solana Pay, which now has its own website.
So far, there is no indication of any major client or company taking on this payment system. I suspect it may take something like this for Solana Pay to take off. Sheraz Shere, head of payments for Solana Labs, used to work for American Express (NYSE:AXP) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), where he helped launch Google Wallet and Google Pay. I suspect it won’t be too long before Solana Pay signs up a major merchant client. Once that happens, expect to see the price of SOL crypto take off.
On the date of publication, Mark Hake did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.