Solana Surpasses Ethereum and Tron in Stablecoin Transfer Volume

Solana has achieved a new milestone in its stablecoin ecosystem. According to Artemis, an institutional crypto data platform, the stablecoin transfer volume on Solana has exceeded $300 billion this month, setting a record high. This represents a year-over-year increase of more than 250%, as the volume was only $11.56 billion in January 2023.

Solana supports several stablecoins, such as USD Coin (USDC), TerraUSD (UST), and Sollet (SOLX). Among them, USDC is the most dominant, accounting for over 90% of the stablecoin transfer volume on Solana. USDC is the second-largest stablecoin in the world, with a market cap of over $40 billion, according to CoinMarketCap.

Stablecoin by Transfer Volume | Source: artemis

The growth of stablecoin transfer volume on Solana reflects the increasing adoption and innovation of the platform, which claims to offer high performance, low fees, and interoperability. Solana can process over 50,000 transactions per second, with an average fee of less than $0.01, according to its website. Solana also supports cross-chain communication with other blockchains, such as Ethereum, Binance Smart Chain, and Terra, through bridges and protocols, such as Wormhole, Ren, and Shuttle.

According to Artemis, the market share of stablecoin onchain transfer volume on Solana has grown to 31.82% from 1.17% a year ago, surpassing other major blockchain networks, such as Ethereum and Tron. Ethereum, the largest and most popular blockchain platform, has seen its market share decline to 30.18% from 77.64% a year ago, due to its high fees and congestion issues. Tron, another fast and low-cost blockchain platform, has also lost its market share to 19.76% from 20.47% a year ago.

The data from Artemis shows that Solana is emerging as a leading contender in the stablecoin space, challenging the dominance of Ethereum and Tron. Solana’s stablecoin ecosystem is expected to grow further, as more projects and users join the platform, and more stablecoins are issued and integrated. Solana’s native token, SOL, has also benefited from the platform’s growth, as it has risen by over 13,000% in the past year, reaching an all-time high of $216.40 on September 9, 2023, according to CoinMarketCap.

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