The rise of Solana as a web3 hub has been solidified by the recent network upgrade to solve the issue of transaction congestion.
Solana (SOL) price has been trapped in a bearish outlook in the past five weeks as with the rest of the crypto industry awaiting a bullish signal from Bitcoin.
Solana (SOL) network, a fast-growing web3 hub backed by top-tier institutional investors and a vibrant online community, has continued to make major waves in the real-world asset (RWA) tokenization sector. According to data from defillama, the Solana network takes pride in more than $3.2 billion in stablecoins market cap and over $20 billion in bridged total value locked (TVL).
In comparison, the Binance Smart Chain (BSC) has a stablecoins market cap of around $5.1 billion and a total of $12 billion in bridged TVL. The measure of bridged TVL on a given layer one chain is crucial as it depicts the level of interoperability of its underlying DeFi platforms.
Visa Highlights Rising Demand for Solana-based Stabelcoins
According to on-chain data provided by Visa, a major multinational payment card services company, the Solana network has outshined the rest of the layer-one chains in the past 30 days. Interestingly, Ethereum (ETH) was among the layer one chain with less than 20 million stablecoin transactions in the past 30 days according to Visa.
Other top-tier chains with less than 20 million stablecoins transaction volume in the past 30 days included Tron (TRX), Avalanche (AVAX), and Optimism (OP). Meanwhile, the Solana network registered more than 120 million stablecoin transactions in the past 30 days. The closest Solana competitor in the stablecoins volume remains Binance Smart Chain (BSC), which registered around 70 million transactions in the past 30 days.
As for the specific stablecoins, Visa noted that Circle’s USDC on the Solana network has registered more than 1.23 billion transactions since January 2023, worth around $4.59 trillion. On the other hand, the Solana network registered a total of 166 million transactions in Tether’s USDT, worth approximately $278 billion.
As a result, the Solana network had the lion’s share of the 352 million stablecoins transactions, worth about $2.3 trillion, in the past 30 days.
Why Solana Wins
As Crypto News Flash has severally reported, the Solana network has become a thriving hub for meme coins and other web3 projects. According to market data by Coingecko, Solana-based meme coins have a total valuation of about $7 billion and an average daily trading volume of around $1 billion.
Meanwhile, the Solana core developers have been working on a network upgrade to ensure a sustainable adoption. The Solana upgrade will ultimately help the network compete with other web3-based blockchains in user acquisition.
Market Implication on SOL Price Action
Solana’s price has been trapped in a bearish sentiment in the past five weeks after an impressive year. According to the latest market data, SOL price has gained over 500 percent in the past year to trade around $136 on Monday, April 29, 2024.
From a technical standpoint, the SOL price against the US dollar is still on a rising trajectory for as long as the bulls hold onto the support level around $124. In case the ETH/BTC pair continues to rebound in the coming weeks, the SOL price will likely lead the altcoins in a generally bullish outlook.
