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Solana Still Leads as the Number One Chain By This Metric

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By Abi Gibson - - 5 Mins Read
Solana logo display; uptrend graph pattern
Solana | Shutterstock

 

Solana logo display; uptrend graph pattern
Solana | Shutterstock

 

Solana doesn't seem to take the pressure off the pedal! The Ethereum rival recently achieved a significant milestone by surpassing Ethereum and other chains regarding weekly transfer volume for stablecoins.

 

This achievement has further established Solana's rapidly growing dominance in the cryptocurrency world.

 

Recent data highlights a remarkable 612% increase in Solana's monthly transfer volume, which now stands at an impressive $103.01 billion.

 

Ethereum follows closely behind with $90.87 billion, while notable chains like Tron and BNB Chain trail with $82.29 billion and $14.65 billion, respectively. On the other hand, Arbitrum has reported a decrease of 26.2% to $8.11 billion.

Solana Takes the Lead in On-Chain Metrics

Solana (SOL), known as a fourth-generation blockchain, has made a remarkable comeback in terms of on-chain metrics.

 

Daily active wallets on Solana have surpassed those of Ethereum, the pioneer in smart contract platforms. Moreover, this significant development aligns with the substantial rise in SOL prices over the past few months.

 

Insights from Step Data further reinforce Solana's growth, indicating that its daily active wallets, currently numbering over 400,000, have slightly exceeded Ethereum's.

  

 

This surge in user activity demonstrates Solana's expanding user base, with a growing number of individuals showing interest in its diverse ecosystems, encompassing DeFi, NFTs, and other protocols.

 

Data from Artemis illustrates Solana's advantage over Ethereum in terms of daily transactions. Despite Ethereum's lead in DeFi total value locked (TVL), Solana's low fees and scalability are attracting more users to this high-performance network.

Prominent stablecoins and Solana's achievements

Solana hosts several prominent stablecoins, with USD Coin (USDC) leading the pack with a market capitalization of over $970 million, maintaining a steady peg around $1.

 

Tether (USDT) follows closely, with a market cap of $831.19 million. Other stablecoins on Solana include Parrot USD (PAI) and UXD Stablecoin (UXD), with smaller market caps of $17.38 million and $11.1 million, respectively.

 

Beyond transfer volumes, Solana has demonstrated achievements surpassing expectations. It has even surpassed Ethereum in daily and weekly decentralized exchange (DEX) trading volumes, marking its rising prevalence in the decentralized finance (DeFi) sector.

 

Additionally, Solana has led in perpetual futures trading volume, which plays a critical role in market liquidity and investor interest.

 

Solana's market capitalization has recently crossed $50 billion and continues to hover around that mark, as per the latest data from CoinGecko.

 

Altcoins, including Solana, have been experiencing a rapid ascent as the crypto market recovers.

 

Despite the FTX estate being permitted to liquidate SOL to repay creditors in secondary markets, Solana remains relatively stable.

 

Furthermore, there are high hopes for the Securities and Exchange Commission (SEC) to approve the first Bitcoin ETF, which is anticipated to positively impact Solana.

 

The testnet release of the validator client Firedancer, developed by Jump Crypto, has provided robust support for SOL.

 

Firedancer's expected launch in H1 2024 will significantly enhance the network's resilience and performance, further contributing to Solana's reputation for reliability.

Survivability and a Bright Future Outlook

Despite pessimistic forecasts, Solana has demonstrated resilience and initiated a recovery phase. Experts credit the team's utilization of stress testing to identify and rectify bugs for this survivability.

 

Solana's active growth coincided with the court decision in the FTX case, as the founder of the crypto exchange, Sam Bankman-Fried, faced legal consequences, relieving Solana from partnership pressures and brightening its prospects.

 

Discussions among industry experts revolve around Solana's potential to lead the next bull market, which is evident from the substantial number of open long positions, which showcases investors' confidence in its positive trajectory.

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