Solana (SOL) emerged as the leading blockchain for stablecoin transfers in January, surpassing established networks like Ethereum (ETH) and Tron (TRX) for the first time. According to Artemis data analysis, Solana’s blockchain witnessed a remarkable $497 billion in stablecoin transfers during January, marking a record-breaking figure.
Current State of Solana
The demand for stablecoins has experienced a significant upswing in the last two months, primarily fueled by optimism surrounding the approval of spot Bitcoin (BTC) ETFs. This positive market sentiment has encouraged many investors to bolster their investments through stablecoins.
Despite challenging market conditions for ETH and TRX, Solana seems to be at the forefront of the recent surge. Examining the graph above reveals a fivefold increase in Solana’s monthly stablecoin volumes between November and January.
- Ethereum’s volume increased by only 31%.
- Tron’s stablecoin transactions remained relatively unchanged.
According to data from DeFiLlama, USD Coin (USDC) led the list, constituting more than 56% of the total supply generated by transactions on the Solana network.
Another contributing factor to this situation was the 14% increase in Solana network’s market value last month, with USDC playing a significant role, while other stablecoins experienced a decline.
Is SOL Returning to Its Former Glory?
Another positive development on the network is SOL’s price surpassing $100 again, following the rise in Bitcoin. Although it has fallen back below $100 at the time of writing, the strong outlook continues.
According to 21milyon.com data, SOL is trading at around $98 at the time of writing, indicating a 3% decrease. Despite today’s drop, SOL’s price experienced an increase of over 12% last week.
Based on the upward trend, last week’s rise has led investors to spend more time and focus their interest on SOL. A closer look at Coinglass data shows that long positions opened in SOL have been more prevalent than short positions over the past two days. Today’s decline, however, seems not to have affected the situation.