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SOL Tallies 5% Gains In One Day After Shopify Integrates Solana Pay

Following the recent downtrend in the crypto market, Solana’s native token, SOL, recorded heavy losses in the past few days. But now the token’s price moves on the daily chart showed the formation of a green candlestick yesterday after many days of posting vivid red ones. 

According to current stats, SOL’s price has decreased by over 7% in the past week. But from August 23, the coin started an uptrend reflected in its 24-hour price change of 5.75% today, August 24. Notably, the recent news about Shopify’s integration of Solana Pay seemingly reignites investors’ confidence in SOL.  

Millions Of Businesses On Shopify Can Now Use Solana Pay

Solana Labs launched its decentralized payment platform, Solana Pay, on the layer-1 blockchain in February 2022 and now, Solana Pay’s plug-in is now available on Shopify. This allows millions of businesses using the e-commerce giant to use the service for payments. 

Related Reading: Pantera CEO Calls Ripple Victory A Black Swan, But Is It Bad?

According to the reports, the first crypto option for users will be the second-largest stablecoin in the market, USDC. Given its stability and close value to USD, it was chosen as the first to appear on the platform. 

However, Shopify’s business development and partnerships head, Josh Fried, revealed that more crypto assets such as BONK and SOL will soon be available. 

Fried also shared with an online news site, TechCrunch, that transactions on Solana Pay are very affordable, given how low the ecosystem charges.

Fried said:

Credit card processing fees usually cost a business between 1.5% and 3.5% per transaction, but using the Solana Pay option is practically “fee-free.

Also, he applauded Solana Pay as a crypto app worth using, saying, “Some people argue the killer app for crypto hasn’t arrived, but it has: it’s payments. [Everyone] should be doubling down on this.”

SOLUSD price chart

Will SOL’s Current Uptrend Continue?

Shopify is a globally recognized platform with a 10% share of the United States’ e-commerce industry. So Solana Pay’s entrance into the e-commerce giant’s hub is expected to boost the ecosystem’s exposure and utility. 

Already, there are more than 11 million active accounts on Solana and the ecosystem is also a player in the NFT sector, with over 21 million assets minted. It also offers low transaction costs at $0.00025. 

These capabilities and continual adoption by top giants in diverse industries will likely push SOL’s price upwards in the coming days. 

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Strike Brings The Lightning Network To Every US Merchant. The Market Yawns

The Strike announcement was an atomic bomb, but the market is not impressed. Since Jack Mallers wasn’t there to reveal an Apple deal as rumored, the general public was somewhat disappointed. However, the Strike CEO announced something much bigger. The company partnered with Blackhawk and NCR to bring Lightning Network transactions to Point Of Sale terminals all over the United States. Plus, with Shopify for the e-commerce equivalent. 

The man was playing third-dimensional chess with us. Mallers titled the presentation “The King’s Gambit,” an alternative to the “pawn to e4” chess opening he usually mentions. Here’s the video:

Inside Strike ‘s Announcement

The presentation started with a brief history of payment networks, starting in 1949 with the invention of the Diner’s Club card. The first revelation comes next: payment networks have not evolved or innovated in 50 years. The legacy financial system is still using this ancient technology like there’s no tomorrow. 

These merchants are adopting Bitcoin for payment this year. (Jack Ballers – Strike). pic.twitter.com/FF57vYF7BH

— Big Sky HODL ⚡ CO Beef Initiative (@BigSky_HODL) April 7, 2022

As usual, Strike’s Jack Mallers proposes to the world that it should join an “open payment standard.” That it should use a “superior payment network.“ And with these partnerships, he finally accomplishes it. Strike will use the bitcoin network as payment rails to enable Lightning Network transactions in a high percentage of merchants in the US. According to Mallers, bitcoin will finally be “embedded into our lives.”

Another interesting part of the story is Senator Cynthia Lummis’ support. According to a letter she sent to Mallers, she says “I am working to bring smart legislation to the digital assets space, so that innovations like this can be integrated into America’s financial services industry.“ That’s reassuring. Because chances are legacy players will fight this. 

thank you @jackmallers. you're an incredible inspiration.

— jack⚡ (@jack) April 7, 2022

The senator will speak tomorrow, on Bitcoin 2022’s final day of conference. 

BTC price chart for 04/08/2022 on Oanda | Source: BTC/USD on TradingView.com
How Did The News Affect The Market?

The general public was expecting Strike to announce an Apple partnership that would’ve made bitcoin’s price pump to infinity. It didn’t get it. So, bitcoin traded around the $43K range the whole day and acted unaffected in front of Jack Mallers’ news. It seems like the market didn’t even flinch. 

What @jackmallers just announced is going to kick off the #Bitcoin circular economy in a massive way.

I think few understand that the inability to easily use BTC is what makes it difficult to accept as a daily driver.

Medium of exchange is here. Next stop, Unit of Account.

— Guy Swann ⚡ (@TheGuySwann) April 7, 2022

More nuanced than an Apple partnership, it will take months, maybe years to see the new’s impact. On the one hand, people aren’t incentivized to spend their bitcoin. As long as its price is increasing, people will want to hold the asset. On the other, this provides a non-KYC way to spend your bitcoin. A non-KYC way of paying. The Strike announcement makes bitcoin a competing Medium of Exchange and puts it into every store in the US.

Is that fact priced in? 

What Does The Twitterati Think About Strike ‘s News? 

The Guy Swann sums up the announcement by declaring it’ll “kick off the Bitcoin circular economy in a massive way. I think few understand that the inability to easily use BTC is what makes it difficult to accept as a daily driver.” For his part, podcaster Anthony Pompliano said, “Hundreds of millions of people can now spend bitcoin or dollars across the Lightning Network instantaneously, completely for free at every major US retailer.”

Strike CEO @jackmallers and Strike just announced partnerships with Shopify and other leading payment providers.

Hundreds of millions of people can now spend bitcoin or dollars across the Lightning Network instantaneously, completely for free at every major US retailer.

— Pomp 🌪 (@APompliano) April 7, 2022

In a phenomenal thread, Economist Lyn Alden explains the implications. “The more places that accepted BTC at point of sale (on-chain or Lightning or otherwise), the more permissionless the whole network is. This is because, if all you can do with BTC is convert it back into fiat on a major exchange, then it’s easy to isolate it, effectively blacklist addresses, etc.”

This is because, if all you can do with BTC is convert it back into fiat on a major exchange, then it's easy to isolate it, effectively blacklist addresses, etc.

But if you can directly spend it on goods and services across companies and jurisdictions, it's harder to isolate.

— Lyn Alden (@LynAldenContact) April 7, 2022

On the other hand, notorious YouTuber Bitboy Crypto misses the point completely and says. “Michael Saylor: Never Sell your Bitcoin (crowd goes WILD) Jack Mallers: Here’s a great way to spend your Bitcoin (Crowd goes WILD) Like does no one see the disconnect here?” 

Michael Saylor: Never Sell your Bitcoin (crowd goes WILD)

Jack Mallers: Here’s a great way to spend your Bitcoin (Crowd goes WILD)

Like does no one see the disconnect here?

— Ben Armstrong (@Bitboy_Crypto) April 7, 2022

Matt Ahlborg, head of research at Bitrefil, gives Bitboy the 411. “What Jack Mallers is really saying is that you will be soon be able to offload your Bitcoins in the real world without KYC’ing through an exchange first.” While Jack Dorsey keeps it short and sweet by saying, “thank you Jack Mallers. you’re an incredible inspiration.”

What Jack Mallers is really saying is that you will be soon be able to offload your Bitcoins in the real world without KYC'ing through an exchange first.

If this is true, it is actually an extremely substantive and important development for Bitcoin.

— Matt Ahlborg (@MattAhlborg) April 7, 2022

The whole world changed after that Strike announcement. It might feel similar, but we’re living in bitcoin world now. Make of that what you will. 

Featured Image: Jack Mallers at Bitcoin 2022 taken from this tweet | Charts by TradingView

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