Solana (SOL) became the leading blockchain in stablecoin transfers in January, surpassing for the first time networks like Ethereum (ETH) and Tron (TRX). According to Artemis data analysis, Solana’s blockchain saw $497 billion in stablecoin transfers during January, indicating a record-breaking figure.
Current State of Solana
The demand for stablecoins has seen a significant increase in the last two months, primarily due to the optimism linked to the approval of spot Bitcoin (BTC) ETFs. This positive atmosphere in the market has paved the way for many investors to increase their investments through stablecoins.
Despite market conditions that put ETH and TRX in a tough spot, Solana seems to be the main point of the recent surge. A closer look at the graph above shows a fivefold increase in Solana’s monthly stablecoin volumes between November and January.
In contrast, Ethereum’s volume increased by only 31%, while Tron’s stablecoin transactions effectively remained the same.
According to data provided by DeFiLlama, USD Coin (USDC) led the list, constituting more than 56% of the total supply generated by transactions on the Solana network.
Another factor supporting this situation was the 14% increase in Solana network’s market value last month, with USDC playing a significant role. Meanwhile, other stablecoins saw a decline.
Is SOL Returning to Its Former Glory?
Another positive development on the network is SOL’s price surpassing $100 again, following the rise in Bitcoin. Although it has fallen back below $100 at the time of writing, the strong outlook continues.
According to 21milyon.com data, SOL is trading at around $98 at the time of writing, indicating a 3% decrease. Despite today’s drop, SOL’s price experienced an increase of over 12% last week.
Based on the upward trend, last week’s rise has led investors to spend more time and focus their interest on SOL. A closer look at Coinglass data shows that long positions opened in SOL have been more prevalent than short positions over the past two days. Today’s decline, however, seems not to have affected the situation.