According to the latest on-chain data, the Layer-1 network Solana has achieved a major milestone in terms of stablecoin transfer volume this month.
Solana overtakes Tron in stablecoin transfer volume
Data from the blockchain analytics platform Artemis shows that stablecoin transfer volume on Solana has already exceeded $300 billion in January. This is the largest transfer volume recorded by stablecoins on the Layer-1 blockchain in a single month.
To put this figure into context, the Solana network recorded $297 billion in stablecoin volumes throughout December. Meanwhile, the blockchain’s stablecoin transfer volume reached approximately $11.56 billion in January 2023, reflecting a growth of more than 2,500% over the past year.
Stablecoin transfer volume across various blockchains in the past year | Source: Artemis
It is clear from the chart above that Solana’s stablecoin activity has been steadily increasing since October and is up over 650% in recent months. This growth has also impacted the network’s share of the stablecoin market, with Solana now holding a market share of around 32%.
Not surprisingly, Ethereum leads the stablecoin market, with transfer volume reaching nearly $317 billion in January. Meanwhile, the Tron network follows Solana in third place, with a stablecoin volume of approximately $240 billion.
On Thursday January 18th Paxos unveiled the launch of its regulated stablecoin, USDP, on the Solana network. According to data from DefiLlama, USDC remains the dominant stablecoin on the Layer-1 network, with a market capitalization of over $1 billion.
Paxos is pleased to announce that our regulated stablecoin USDP is now live on the website @solana blockchain! This integration makes it easier for everyone to access and use the safest and most reliable stablecoins on the market. Read more here: https://t.co/0j4Kj0yyPk pic.twitter.com/1doexKvVmY
— Paxos (@Paxos) January 18, 2024
SOL price overview
Despite Solana’s growing network activity, the price performance of its native token SOL has moderated somewhat in recent weeks. At the time of writing, the Solana token is valued at $92, reflecting a decline of 0.6% in the last 24 hours.
This sluggish performance over the past day underlines the altcoin’s challenges since the turn of the year. After reaching a multi-month high of $124 in late 2023, SOL price has largely struggled to stay above $100.
According to data from CoinGecko, the Solana token has fallen more than 5% in the past week. Meanwhile, the currency has fallen by about double since the start of 2024.
Nevertheless, SOL retains its position as the fifth largest cryptocurrency in the industry, with a market capitalization of over $40 billion.
Solana price faces downward pressure on the daily timeframe | Source: SOLUSDT chart on TradingView
Featured image from Dreamstime/Aivaras Sakurovas, chart from TradingView
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