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Solana Volume in Stablecoins just flipped Ethereum for the first time, and now retail traders are asking ‘how high can Solana go?’.
Move over Ethereum, it’s Solana’s turn to shine – Solana (SOL) has flipped Ethereum (ETH) in weekly stablecoin transaction volumes, revealing a growing influence in the Web3 space.
According to Degen News, a web3 influencer, this shift is marked by Solana’s impressive handling of $364.7 billion in stablecoin transfers over a week, surpassing Ethereum’s $152.99 billion, with Tron and BNB Chain trailing behind.
The trend also contributes to March’s total stablecoin volume of $804 billion on Solana, nearing February’s $960 billion and dramatically up from March 2023’s $11.56 billion.
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Solana now holds a 42.3% share of the stablecoin market, a significant leap from just 1.9% a year prior. So what does this mean if you’re a SOL bagholder and can it ever flip Ethereum price?
How High Can Solana Go?
Since October 2023, Solana’s stablecoin activity has grown by 1,770%, causing Ethereum’s stablecoin volume dominance to wane to 27% of the market.
Notably, USDC transactions on Solana now exceed those on Ethereum and Tron, making Solana the top stablecoin network.
Solana’s DeFi sector has also seen substantial growth, with total value locked reaching $4.66 billion. Additionally, DEX volume has surpassed Ethereum and other platforms due to March memecoin madness within its ecosystem making tokens like “Dogwifhat” and “Book of Meme” the new Dogecoin.
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Some experts claim Solana is the new Ethereum – it’s cheaper, faster, has more active users, is more Google-searched than ETH, and Solana dominates the memes, DePIN, and stablecoin markets.
Solana even surpassed Ethereum in NFT trade volume in December, but recent data suggests close competition between the two networks in NFT sales over the last 30 days.
The price of Solana’s token, SOL, has seen an impressive 936% increase throughout 2023, fueled by broader network adoption and alleviated concerns over potential liquidations by major investors.
Can Solana Price Flip ETH?
The difference between Ethereum and others like Solana, Avalanche, Binance Smart Chain, or anything else you’ve got in mind is that Ethereum is the first network for smart contracts and, as such, is further ahead in development than any other.
While many developers and users whine about Ethereum’s high fees – Ethereum is now focused on offering its blockspace to other chains (L2s) where it has the undisputed monopoly. Plus, it’s fully decentralized, which is key for long-term security.
That said it’s a fact that Solana is significantly outpacing Ethereum in various crucial metrics – a so-called “flippening” is certainly possible.
Bottom Line: Solana Volumes Exceed Ethereum In Stablecoins
We’re left wondering if Solana is just teasing the idea of a flippening, in a similar way to Ethereum’s eternal pursuit of Bitcoin’s top spot.
Looking ahead, Solana eagerly anticipates the launch of Firedancer, an open-source validator client developed by Jump Crypto.
This tool will enhance decentralization and address potential vulnerabilities within the network. Its introduction in q3 2024 is expected to further strengthen Solana’s position in the crypto ecosystem. Don’t fumble the bag; Solana is making big moves.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
