Solana took the lead in crypto rankings in terms of weekly stablecoin transfer volume, surpassing Ethereum and other major blockchains. This remarkable performance is fueled by growing interest in memecoins, DeFi, and mass adoption of USDC.
The rise of Solana and the adoption of USDC
According to data from blockchain analytics platform Artemis, Solana recorded a weekly stablecoin transfer volume of $364.7 billion, surpassing Ethereum ($152.99 billion), Tron ($101.57 billion) and BNB Chain ($22.75 billion).
Anna, from the Solana Foundation, cited data from Artemis and found that the overlap of users using USDC and USDT is 10.4% on Solana, compared to 10.9% on Arbitrum, 4.5% on Polygon and 5.6% on Ethereum. Interestingly, around 70% of Solana users use USDC only, while Polygon and Ethereum users are more inclined to use USDT.
Stablecoin activity on Solana began to pick up in October 2023 and has since grown steadily by 1,770%. Meanwhile, Ethereum, the historic industry leader, lost its dominance to Solana, now accounting for only around 27% of stablecoin transfer volume.
The key factors of its growth
In addition to growth in stablecoin volumes, Solana has also seen an increase in DeFi activity, with its total value locked reaching $4.55 billion, its highest level since April 2022, according to THE data by DefiLlama.
Solana-based decentralized exchanges (DEXs) saw a remarkable 70% increase in trading volume during the week of March 19, reaching $3.37 billion and surpassing Ethereum ($3.05 billion). Orca, the largest DEX in the Solana ecosystem, alone represents 88% of the total volume of the 26 DEXs present on the blockchain.
This exceptional performance of the Solana network is largely attributable to the growing popularity of memecoins such as Book of Meme (BOME), Dogwifwhat (WIF), BONK and Slerf. Additionally, the price of Solana's native token has seen a spectacular surge of over 90% since the start of the year, reaching $193 at press time.
Solana is currently at its peak, attracting both developers and investors. However, it remains to be seen whether this trend will continue in the long term and how Ethereum and other blockchains will react to this increased competition.
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