Recent market dynamics have seen Solana struggle to break the $200 mark. A notable bearish factor among these market fundamentals is the recent reports regarding the assets of a bankrupt cryptocurrency exchange. ftx selling Solana worth $7.65 billion at a 68% discount to its current market price.
However, on-chain data indicates that SOL is still holding strong, particularly in the stablecoin sector. Stablecoin transfers on the Solana chain reveal that the blockchain consistently processes more transactions than ethereum each day, recording $411.2 billion more in trading volume last week.
On-Chain Data Highlights Growing Use of Solana Stablecoins
Artemis Facts, an on-chain cryptocurrency analytics platform, has highlighted the growing use of stablecoins on Solana. According to on-chain data, the daily trading volume of stablecoins on the blockchain has exceeded that of ethereum for almost the entire month of March, especially starting March 9. The difference in trading volume worsened further last week, as Artemis noted in a social media post.
For example, Solana recorded $97.5 billion in stablecoin trading volume yesterday, March 30, compared to $9.3 billion in volume on the ethereum blockchain. The biggest difference came on March 28, when the altcoin recorded a trading volume of $112.9 billion, $95.3 billion more than ethereum's $17.6 billion. Consequently, Solana now contributes more than 80% of the stablecoin market's trading volume.
x.com/artemis__xyz/status/1774157161356255565?s=20″ target=”_blank” rel=”noopener nofollow”>According to Artemismost of the volume can be attributed to MEV bots and Phoenix, a decentralized crypto exchange. MEV (Maximum Extractable Value) bots are programmable software created to scan blockchain networks for transactions that have the potential to generate profits and then carry out those transactions automatically. These robots have been particularly active on the Solana blockchain, constantly looking for arbitrage opportunities to make profits.
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Total crypto market cap is currently at $2.582 trillion. Chart: TradingView
SUN at 200?
The Solana ecosystem is expanding rapidly, as evidenced by price increases and on-chain metrics. SOL, Solana's native cryptocurrency, witnessed considerable growth in the last seven days to reverse last week's downward trend.
At the time of writing, SOL is trading at $195, up 13% over the past seven days and reaching a high of $198. Solana's price had already touched $208 on March 18. However, the bullish momentum was not enough to maintain the price appreciation as it fell to $167 on March 20.
Fundamentals point to a hurdle before reaching the $200 mark again. The hurdle concerns 41 million SOL tokens that are about to hit the market from FTX ownership. Such a sell-off could increase selling pressure, causing a price reversal. Commercial activity, on the other hand, indicates that there is a greater possibility of price appreciation and that Solana is on her way to reaching $200 and more.
Featured image from Pexels, chart from TradingView
