Solana Tops Ethereum in Stablecoin Volume, But How?

Key Takeaways

• Solana’s stablecoin transfer volume has soared to over $50 billion, eclipsing Ethereum.
• The majority of Solana’s stablecoin transfers are in USDC.
• Solana transactions and daily active addresses are both on an uptrend.

Solana has overtaken Ethereum in stablecoin transfer volumes after riding on the back of a memecoin-driven trading frenzy. The data from Artemis points out that the blockchain’s stablecoin transactions surpassed the $50 billion mark, outpacing Ethereum. What is next for Solana based on the SOL/ETH ratio?

Solana Outshines Ethereum in Stablecoin Transfers

Solana has been outshining Ethereum when it comes to daily activity, decentralized trading volume, investor interest, and now stablecoin transfers. A lot of the recent growth is attributed to a memecoin season on the platform.

Recent data from the blockchain analytics platform Artemis shows  the platform surpassed $50.4 billion in stablecoin transfer volume. SOL marked a lead over Ethereum’s transfer volume, which indicates the total value transferred over the network. It stands at $23.28 billion at the time of writing (March 26 2024). In comparison, networks like Tron and BNB Chain have transfer volumes of $16.39 billion and $3.77 billion, respectively.

In terms of the type of stablecoins, the majority of transactions on Solana  are based on USDC with around 72% dominance. On Ethereum, USDC transactions led the charts closely followed by USDT as DAI followed by other coins. DeFiLlama places USDT dominance close to 55% for the second-largest network.

According to SolanaFloor analysis, the stablecoin transfer volume has surged 1,900% on Solana in six months against a 60% growth on Ethereum.

Notably, Solana has gained in the last three months with a change percentage of 340% compared to Ethereum’s 79%. In the same period, SOL’s supply has grown by 49.9% versus Ethereum’s 16.8% amid a deflationary burn rate.

Meanwhile, it also leads in transfers, which indicates the number of individual transactions, where Ethereum is at 275,380  compared to Solana’s 5.52 million. But, Solana’s higher transfer volume may be due to fewer higher-value transfers. The average transfer value for SOL’s chain stands at $91,400  while Ethereum leads with $84, 540.

SOL/ETH Ratio Rises

Solana is also topping in daily active addresses with a 24% increase against Ethereum’s 9% rise in the last three months. Solana has 174,640 daily active addresses with Ethereum’s 90,400.

Amid the surge, Solana co-founder Anatoly Yakovenko hinted that protocols on Ethereum, Avalanche, and Arbitrum need to pivot to Solana. Recently, Yakovenko also updated the community that the first email was sent on the blockchain on March 25, asking: “Can your blockchain email you?”

That said, based on DefiLlama  data, the USD inflows on Solana inched towards $80 million on March 25. The positive figures come after four consecutive days of outflows that started on March 21. At the same time, presale trends of memecoins continue to upsurge.

Glassnode co-founder Negentropic observed on X that the platform has been performing well since the end of 2022 when compared to ETH. According to the analyst, the SOL/ETH ratio which compares the value of the two coins is rising. A higher ratio means SOL is gaining value relative to Ethereum. The analyst suggests that this ratio could go up to 0.76 or potentially higher, which would mean SOL will likely continue to perform better for a while.

Solana’s Performance to Continue?

Solana has seen an impressive 1,900% growth in stablecoin transfer volume over six months, compared to Ethereum’s 60%. The former has also a 340% increase in transfer volume.

However, its continued success hinges on its ability to maintain network stability without outages. Analysts see this positive movement continuing for now.

About the Author

Shraddha Sharma

Shraddha has around five years of experience as a financial journalist, focusing largely on the Asian markets. Starting her career in Mumbai, India, as a news trainee and producer, she quickly found her niche in crypto. She is keen on learning how emerging technologies affect the broader markets and enjoys explaining complex financial ideas in a way that's easy to understand.

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