Solana Has Flipped Ethereum In Yet Another Metric In Its Bid To Reach $200

Scott Matherson

1 year ago

3 mins read

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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.

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

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

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Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

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