Solana has continued its bullish sentiment in its ecosystem to flip Ethereum in the stablecoin market for the second week in a row, according to on-chain data. SOL’s price gain has slowed in the past week, showing a negative 2.3% in a 7-day timeframe at the time of writing. However, stablecoin transfers on the Solana chain reveal the blockchain retaining its reputation as an Ethereum killer, registering more than $10.3 billion more trading volume in the last week.
Stablecoins Growing On Solana
Ethereum has mostly dominated the stablecoin market since the inception of Tether USDT. However, according to data from the crypto analytics platform Artemis, stablecoin trading volume on Solana surpassed Ethereum last week for the second week in a row, showing how quickly Solana is gaining traction. Solana registered $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 chain of choice for stablecoin usage and transactions. Solana surpassed Ethereum in stablecoin volume for the first time in the week leading to December 25. During this period, SOL registered a weekly stablecoin trading volume of $103.01 billion, $12.14 billion more than Ethereum’s volume of $90.87 billion.
Solana also went on a crazy surge last year, registering over a 950% gain as it reached a yearly high of $121. During this period, we saw Solana compete vigorously with Ethereum across various metrics.
Stablecoin trading volume, in particular, is at a 2,213% gain in a 3-month timeframe. The chain also witnessed 27.17 million stablecoin transactions in the same timeframe, compared to Ethereum’s 1.17 million transactions.
DeFi aggregator DeFiLlama also shows DEX trading volume on SOL soared to $28.13 billion in December, surpassing Ethereum L2 chains Arbitrum and Polygon. Solana also overtook Ethereum in NFT trading volume in early December.
SOL Price To $200?
The Solana ecosystem is expanding quickly, as evidenced by price surges and on-chain metrics. The price surge can also be attributed to various airdrops and the hype surrounding BONK, the first meme coin on 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 trading at $107, down by 5.74% and 3.44% in the past 24 hours and seven days respectively. It is now facing resistance at around $115, and a failure to rally above this price point could lead to a continued consolation toward support at $100.
While there are never any guarantees, SOL’s strong fundamentals point to a potential price appreciation throughout the year and SOL’s path to revisiting the $200 price level and beyond.
If Solana continues to also outpace Ethereum and Ethereum L2 chains on key metrics and grows 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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