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Solana is about to overtake Ethereum in stablecoin volume

26 Jan, 2024 3 min read
solana-about-to-overtake-ethereum

Transactions with stablecoins are key activity areas for networks supporting smart contracts. In December, stablecoin volume totalled $1.2 trillion, and the number of active addresses is growing year over year despite market turbulence.

Image source: artemis.xyz

For the past two years, the Tron network has been competing with Ethereum, allowing USDT and other stablecoins to be transferred at lower fees. But at the end of 2023, Solana displaced Tron from the second position, challenging Ethereum. In the last week, Ethereum accounted for 39% of turnover, Solana contributed another 29%, and Tron made up 25%. 

Image source: artemis.xyz

Solana outperforms its competitors in key parameters. For instance, a transaction is completed within half a second, and commission is under one cent.

Image source: vaneck.com

Last year, Visa chose Solana as its partner for an interbank exchange pilot project since transfers on the blockchain proved more efficient than traditional methods. The payment giant's opinion can be found on its official website.

This news, coupled with VanEck's investment report that the network was undervalued, led to an explosive rise in the coin's value last year.

Image source: StormGain Cryptocurrency Exchange

Solana's only major problem has always been frequent failures, often leading to a complete shutdown. But since February, the network has been operating stably and even successfully overcame a surge of transactions in connection with the mass minting of ordinals at the end of 2023. Not all networks coped well with this challenge.

Image source: solscan.io

The developers hope that the issue with network failures will finally be resolved by deploying the new Firedancer validator. Its rollout is scheduled for the first half of 2024.


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