Solana has continued his bullish sentiment in its ecosystem to switch to ethereum on the stablecoin market for the second week in a row, according to on-chain data. SOL price rise has slowed down in the past week, showing negative 2.3% over a 7-day period at the time of writing. However, stablecoin transfers on the Solana chain reveal that the blockchain retains its reputation as an ethereum killer, recording over $10.3 billion more in trading volume in the last week.
Stablecoins grow on Solana
ethereum has primarily dominated the stablecoin market since the inception of Tether USDT. However, according to data from the cryptanalysis platform Sagebrush, stablecoin trading volume on Solana surpassed ethereum last week for the second week in a row, demonstrating how quickly Solana is gaining ground. Solana recorded $40.86 billion in stablecoin volume, compared to ethereum's trading volume of $30.31 billion.
On-chain numbers since December demonstrate that SOL is quickly becoming the preferred chain for stablecoin usage and transactions. Solana surpassed ethereum in stablecoin volume for the first time in the week leading up to December 25. During this period, SOL recorded a weekly stablecoin trading volume of $103.01 billion, $12.14 billion more than ethereum's volume of $90.87 billion.
<img decoding="async" class="alignnone size-medium wp-image-567828 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/Solana-ethereum.png?w=460&resize=460%2C223″ alt=”Solana ethereum” width=”460″ height=”223″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/Solana-ethereum.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/Solana-ethereum.png?w=460&resize=460%2C223 460w” sizes=”(max-width: 460px) 100vw, 460px” loading=”lazy” data-recalc-dims=”1″/>
Solana also saw a huge surge last year, recording a gain of over 950% and hitting a yearly high of $121. During this period, we saw Solana compete vigorously with ethereum on several metrics.
Stablecoin trading volume, in particular, has increased by 2213% in a period of 3 months. The chain also witnessed 27.17 million stablecoin transactions in the same time period, compared to 1.17 million ethereum transactions.
DeFi aggregator DeFiLlama also shows that DEX trading volume on SOL skyrocketed to $28.13 billion in December, surpassing ethereum L2 chains Arbitrum and Polygon. Solana too surpassed ethereum in nft trading volume at the beginning of December.
SOL price at $200?
The Solana ecosystem is expanding rapidly, as evidenced by price increases and on-chain metrics. The price increase can also be attributed to several airdrops and the hype surrounding BONKhe first coin meme in the Solana chain. As more people buy and trade SOL and other assets on the blockchain, demand for the SOL coin is likely to increase.
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At the time of writing, SOL is negotiating to $107, a decrease of 5.74% and 3.44% in the last 24 hours and seven days respectively. It is now facing resistance around $115, and if it fails to break above this price level, it could continue to consolidate towards the $100 support.
While there are never guarantees, SOL's strong fundamentals point to potential price appreciation throughout the year and SOL's path to revisiting the $200 price level and beyond.
If Solana continues to also outperform ethereum and ethereum L2 chains in key metrics and increase its real-world utility, $200 could be on the horizon sooner than most investors would expect.
SOL at $107 | Source: SOLUSD on Tradingview.com
Featured image from Securities.io, chart from Tradingview.com
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