Solana's Stablecoin Transfer Volume Surges, Nearing Ethereum's Dominance
Summary:
The layer-1 Solana blockchain has seen its stablecoin transfer volume steadily rise, topping $300 billion in January, according to blockchain analytics service Artemis. This marks a substantial increase from the same period last year. Ethereum leads the industry in stablecoin transfer volume, but Solana is swiftly closing the gap. This growth streak was spearheaded by USDC transactions on Solana. Furthermore, Paxos' regulated stablecoin USDP has been launched on Solana, highlighting the network's increasing attraction for stablecoin transactions.
The Solana layer-1 blockchain has experienced a continuous increase in the transaction volume of stablecoins, setting a new high for the month so far. Blockchain analytics service Artemis reports that the volume of stablecoin transactions on Solana has topped $300 billion already in January, outpacing December's $297 billion. The current month's figure of $303 billion represents a 2,520% increase compared to the $11.56 billion transaction volume recorded in January 2023. Solana's share of the stablecoin market is now nearly 32%, a sizeable leap from the 1.2% it held a year ago. Stablecoin activities on Solana began to show noticeable rise in October and have surged by 650% since. The top player in stablecoin transaction volume still remains Ethereum with $317 billion this month, a market share of over 33%, but Solana is steadily narrowing that gap. Tron ranks third, with transaction volumes for the month reaching $240 billion. According to Artemis, as of January 16, the weekly stablecoin volumes across all networks had hit a yearly peak, largely propelled by USDC transactions on Solana, which pushed the weekly volume beyond $367 billion.
Paxos, on January 18, disclosed that its regulated stablecoin USDP has been launched on the Solana blockchain. Over the past year, stablecoins worth more than $1.18 trillion have been transferred across all blockchains. Besides stablecoin volumes, Decentralized Finance (DeFi) activities on Solana have also seen a rise, driving the Total Value Locked (TVL) to its peak since September 2022, recording $1.36 billion as per DeFiLlama. SOL prices, however, have been exhibiting a downward trend this week, decreasing by 2% over the weekend to be trading at about $93. The asset has, so far, experienced a 25% slide from its December 2023 high of $123, and it sits 64% below its all-time peak of $260 achieved in November 2021.
Published At
1/21/2024 6:48:23 AM
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