Traders are holding back until they see real on-chain activity — and that caution is keeping prices subdued for two blockchains that just scored major updates. PayPal names Solana as PYUSD default Last week PayPal made Solana the default settlement layer for its stablecoin PayPal USD (PYUSD). That means most PYUSD transfers and payments will route over Solana unless users explicitly switch to another network such as Ethereum or Arbitrum, according to PayPal’s post on X. PYUSD originally launched on Ethereum in 2023, and PayPal expanded support to Solana in 2024 to take advantage of faster finality and much lower fees. Making Solana the default signals confidence in the network’s ability to handle higher-volume payment flows — a potentially big source of on-chain activity if usage follows. Cardano prepares USDCx to tackle a liquidity gap At the same time, Cardano is moving to shore up its stablecoin liquidity by preparing to launch USDCx, a USD Coin–backed token expected by the end of February. Cardano currently holds under $40 million in stablecoins, a tiny fraction of liquidity compared with rivals like Ethereum and Solana, which has constrained DeFi growth on the chain. Philip DiSaro, CEO of Anastasia Labs and a co-author on CIP-113, tweeted his enthusiasm for the proposal and the related programmable token smart-contract work (iohk/wsc-poc repo). USDCx is described as 1:1 backed by USDC reserves and intended to function like regular USDC for most users — a step that could unlock more DeFi activity on Cardano if adoption follows. So why aren’t prices moving? Despite these developments, SOL and ADA have shown only muted price reactions. Solana briefly spiked mid-week before sellers reasserted themselves, while Cardano’s gains have been modest relative to the potential significance of a Cardano-native USDCx. Possible explanations: - Markets may have already priced in the announcements. - Traders appear to be waiting for visible usage: real payment flows on Solana or measurable stablecoin liquidity/DeFi activity on Cardano before deploying capital. - Short-term sellers and lack of follow-through buying can cap rallies until on-chain metrics confirm the narrative. Bottom line The headlines are meaningful: PayPal routing PYUSD to Solana could drive transactional volume, and USDCx aims to plug a major stablecoin shortfall on Cardano. But traders want proof — actual volume and liquidity — before committing. Watch on-chain flows and stablecoin balances over the coming weeks for signs that these announcements are turning into sustained network activity. Disclaimer: This article is informational and not investment advice. Cryptocurrency trading is high risk; do your own research before making decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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