Layer 1 network Solana hit a significant milestone in terms of stablecoin transfer volume this month, according to the latest on-chain data.
Solana overtakes Tron in stablecoin transfer volume
Solana’s stablecoin transfer volume already surpassed $300 billion in January, according to data from blockchain analytics platform Artemis. This is the highest transaction volume ever recorded by a stablecoin on a layer-1 blockchain in a single month.
To put these numbers into context, the Solana network recorded $297 billion in stablecoin trading volume throughout December. Meanwhile, the blockchain’s stablecoin transfer volume was approximately $11.56 billion in January 2023, reflecting growth of more than 2,500% last year.
Stablecoin transfer volume across various blockchains in the past year | Source: Artemis
Looking at the chart above, it is clear that Solana’s stablecoin activity has been steadily increasing since October, increasing by over 650% over the past few months. This growth has also impacted the network’s share of the stablecoin market, with Solana currently boasting a market share of approximately 32%.
Unsurprisingly, Ethereum is leading the stablecoin market, with transfers already reaching nearly $317 billion in January. Meanwhile, the Tron network follows Solana in third place with stablecoin volume of approximately $240 billion.
On Thursday, January 18, Paxos announced the launch of USDP, a regulated stablecoin, on the Solana Network. According to DefiLlama data, USDC remains the dominant stablecoin on layer 1 networks with a market capitalization of over $1 billion.
Paxos is excited to share regulated USDP now live. @Solana Blockchain! This integration makes it easier for anyone to access and use the most secure and trusted stablecoin on the market. Learn more here: https://t.co/0j4Kj0yyPk pic.twitter.com/1doexKvVmY
— Paxos (@Paxos) January 18, 2024
SOL Pricing Overview
Despite Solana’s surging network activity, the price performance of its native token SOL has weakened somewhat over the past few weeks. As of this writing, the value of the Solana token is $92, down 0.6% in the last 24 hours.
This lackluster performance over the past days highlights the challenges for altcoins since the beginning of the year. After reaching a multi-month high of $124 in late 2023, SOL price has had great difficulty maintaining above $100.
Solana tokens have fallen more than 5% in the past, according to data from CoinGecko. main. Meanwhile, the coin has fallen by about twice that figure since early 2024.
Nonetheless, SOL maintains its position as the 5th largest cryptocurrency in the sector, with a market capitalization of over $40 billion.
Solana price faces downward pressure on the daily timeframe | Source: SOLUSDT chart on TradingView
Featured image by Dreamstime/Aivaras Sakurovas, TradingView chart
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