Solana surges ahead of Ethereum and Tron in stablecoin activity

[MrSpasybo]

Solana's impressive growth trajectory continues to amaze me as the network has now surpassed Ethereum and Tron in stablecoin volume performance.

According to the latest Google Search Traffic report, Solana has topped Ethereum based on stablecoin volume.
Solana-based USDC has now become the most transacted stablecoin. The stablecoin registered a whopping $103 billion worth of transfers on Solana.
As per the report, Ethereum followed Solana with $90.9 billion, with Tron coming in third with $82.3 billion. BNB Chain was fourth on the list with $14.6 billion.

>> Solana Surpasses Ethereum and TRON in Stablecoin Volume Performance

I think this surge in Solana's stablecoin volume is attributed to various factors: network's speed, scalability, and low transaction fees. Solana became an attractive platform for stablecoin usage, particularly in DeFi applications.

This achievement highlights Solana's potential to challenge Ethereum's dominance in the broader crypto ecosystem. Solana's ascendency in the stablecoin space further strengthens its position as a prominent blockchain contender and Solana is poised for further success in 2024. Coupled with the fact that investment funds pour more money into Solana than Ethereum, I even believe that Solana cap can surpass Ethereum cap by 2025. Currently, Solana is much superior to Ethereum in both speed and money flow.

Do you think this is an important event marking the rise of Solana to once again compete in the #2 with Ethereum?

[jonathancool220]

Ethereum $312,385,013,407
Solana      $42,707,140,686

Above is the difference between the Ethereum and Solana coin marketcaps, I took these values from Coinmarketcap as of January 12, 2024.
The value of the Solana coin is so much money to be able to overtake or approach the Ethereum coin and we can calculate it 312:42 = 7.4, and this value means that Solana must increase its market cap by more than 740%.

Maybe my calculations are wrong because I'm not good at counting, but judging from the total market cap, the Solana coin is very, very far from being able to approach Ethereum at this time.

[MrSpasybo]

Ethereum $312,385,013,407
Solana      $42,707,140,686

Above is the difference between the Ethereum and Solana coin marketcaps, I took these values from Coinmarketcap as of January 12, 2024.
The value of the Solana coin is so much money to be able to overtake or approach the Ethereum coin and we can calculate it 312:42 = 7.4, and this value means that Solana must increase its market cap by more than 740%.

Maybe my calculations are wrong because I'm not good at counting, but judging from the total market cap, the Solana coin is very, very far from being able to approach Ethereum at this time.

Yeah, in the short term, it is very difficult for SOL to surpass ETH in terms of capitalization, but I still expect fierce competition between them in 2025. That will create excitement in the market and we will see a hot altseason. I believe that something huge is being planned behind Solana, institutional money pouring into SOL is already greater than pouring into ETH in 2023!

[legend45]

Yeah, in the short term, it is very difficult for SOL to surpass ETH in terms of capitalization, but I still expect fierce competition between them in 2025. That will create excitement in the market and we will see a hot altseason. I believe that something huge is being planned behind Solana, institutional money pouring into SOL is already greater than pouring into ETH in 2023!

Solana has good team behind their project, I agree with you I don't think solana will surpass Ethereum in short term.
But It might be happen at the coming future.
Because we all see Solana has shown good performance.
I have buy more solana again and will hold until next year.
Solana ever touched $ 260 ATH, I think It will hit again next year.

[Nheer]

Yeah, in the short term, it is very difficult for SOL to surpass ETH in terms of capitalization, but I still expect fierce competition between them in 2025. That will create excitement in the market and we will see a hot altseason. I believe that something huge is being planned behind Solana, institutional money pouring into SOL is already greater than pouring into ETH in 2023!

Solana has good team behind their project, I agree with you I don't think solana will surpass Ethereum in short term.
But It might be happen at the coming future.
Because we all see Solana has shown good performance.
I have buy more solana again and will hold until next year.
Solana ever touched $ 260 ATH, I think It will hit again next year.

Solana have been one of the projects that have surprised people recently and have shown a great potential to surpass lots of coins but I doubt if it can surpass Ethereum in a short time too, maybe in the future it can but not anytime soon. Both projects have a very good team behind them and Ethereum have even been predicted to surpass btc in the past because of it’s potential. Let’s just enjoy the positivity of Solana and witness it surpass it’s ATH and set a new ATH.

I am accumulating more Solana than the usual getting ready for it to bloom again.

[MrSpasybo]

Solana has good team behind their project, I agree with you I don't think solana will surpass Ethereum in short term.
But It might be happen at the coming future.
Because we all see Solana has shown good performance.
I have buy more solana again and will hold until next year.
Solana ever touched $ 260 ATH, I think It will hit again next year.

From what I see, the market is very FOMO with Solana, SOL's TVL increased 500% from the bottom^[1], many KOLs are also optimistic when predicting SOL token price in the coming cycle^[2].

If Solana continues to grow as well as it has, we can expect interesting competition in 2025. Solana's potential is still huge without the need for scaling solutions like Ethereum, everything are all ready for Devs and users coming to Solana.
[1] DefiLlama: Solana
[2] Crypto Analyst Says A Solana Price Will Climb To $750, Here’s When

[MVL~$]

Solona coin has gained the kind of popularity it currently has. And with the way its market has gone up, hopefully it will be able to overtake Ethereum in the future. It may have a fairly good period of time but at the end of the day I think Solona Coin will continue to move higher. I have a completely positive opinion about this coin. Those who want to invest and hold on to this coin can do so. Expect it to increase in future.

[MrSpasybo]

Solona coin has gained the kind of popularity it currently has. And with the way its market has gone up, hopefully it will be able to overtake Ethereum in the future. It may have a fairly good period of time but at the end of the day I think Solona Coin will continue to move higher. I have a completely positive opinion about this coin. Those who want to invest and hold on to this coin can do so. Expect it to increase in future.

As we discussed above, the possibility of SOL surpassing ETH in capitalization in cycle 2024 is very small. To do that, the SOL price must increase dramatically while Ethereum has some extremely bad problem with the ongoing DenCun update and causes the ETH price to return to the bottom again. From personal experience, I don't expect this.

But Solana can absolutely be mentioned in this cycle as a project that chases Ethereum and competes fairly with Ethereum in terms of capital flow, Dapps and users thanks to its high speed and low transaction fees. I am a fan of both blockchains so I will be cheering for both Ethereum and Solana 💪💪💪

[joniboini]

Have they fixed their stability issues? If I remember correctly their network was stopped multiple times through 2023, which is arguably the most annoying about SOL blockchain. It is hard to compete with Ethereum if the network can go down without notice for hours. If they can last the whole of 2024 without any halt, maybe we can be more optimistic about their price action. I do agree that it is not too bad to use it for DeFi activity compared to ETH though (USDC is what I transacted the most), and it is way cheaper as far as my experience goes.

[MrSpasybo]

Have they fixed their stability issues? If I remember correctly their network was stopped multiple times through 2023, which is arguably the most annoying about SOL blockchain. It is hard to compete with Ethereum if the network can go down without notice for hours. If they can last the whole of 2024 without any halt, maybe we can be more optimistic about their price action. I do agree that it is not too bad to use it for DeFi activity compared to ETH though (USDC is what I transacted the most), and it is way cheaper as far as my experience goes.

Compared to 2021 and 2022, the Solana network is more stable and for quite a while I have not heard of any problems occurring and causing users to have trouble and not be able to use Solana for many hours. Crypto winter was a bad time for the SOL token price but it was great for development because Devs could focus on blockchain development and fixing remaining silly bugs 😁

[philipma1957]

Solana is used to support hotspot gear. So there is a linkage to POW. and hotspot gear actually does act like pow with its older HNT token and its newer IOT token.  I see Solana doing okay long term.

[MrSpasybo]

Solana is used to support hotspot gear. So there is a linkage to POW. and hotspot gear actually does act like pow with its older HNT token and its newer IOT token.  I see Solana doing okay long term.

Maybe you want to talk about Helium project's HNT token which is very famous in the DePIN sector. Helium operates on the Solana blockchain but I think HNT is the payment method in the Helium network.
And I don't think HNT is a stablecoin on Solana, it's a utility token in a decentralized network of hotpots.

HNT Usage: HNT serves the needs of the two primary parties in the Helium Ecosystem:

• Hotspot Hosts and Operators. Hosts are rewarded in network tokens like IOT or MOBILE while deploying and maintaining network coverage. These network tokens are redeemable for HNT.
• Enterprises and Developers use the Helium Network to connect devices and build IoT applications. Data Credits, which are a $USD-pegged utility token derived from HNT, are used to pay transaction fees for wireless data transmissions on the Network^[1].

[1] The Helium Network Token

[Stompix]

Ethereum $312,385,013,407
Solana      $42,707,140,686

I always aid that market cap is largely irrelevant, there are coins in the top 5 that have a complete fake MC, low liquidity, no transaction volume whatsoever, just people holding their coins for dear life with expectation they will get rich in the next pump.
BNB has a 1/100 ratio of  daily volume vs MC, USDT 1 to 4.

Besides, why would one care about the marketcap at all, for example Monero could grow x100, it won't be able to beat Bitcoin if this one does only x2, but for an investor, what would be more important, the market cap or the returns?

Have they fixed their stability issues? If I remember correctly their network was stopped multiple times through 2023, which is arguably the most annoying about SOL blockchain. It is hard to compete with Ethereum if the network can go down without notice for hours. If they can last the whole of 2024 without any halt, maybe we can be more optimistic about their price action.

The biggest problem is the centralization of validators, multiple time in the past the causes for the halt have been validators, and another alarming move was the Heizer blockade which took down like 30% of them in a flash. It would be interesting to see how it actually scales, it has an insane number of transactions per day but it has low usage in address count compared to that which helps their model of pruned chains

[MrSpasybo]

The biggest problem is the centralization of validators, multiple time in the past the causes for the halt have been validators, and another alarming move was the Heizer blockade which took down like 30% of them in a flash. It would be interesting to see how it actually scales, it has an insane number of transactions per day but it has low usage in address count compared to that which helps their model of pruned chains

Although it is very fast and meets user needs, the problem of Solana blockchain lies in stability. We have witnessed Solana's 11th outage and cannot predict when the 12th will occur. PoH is really new and has many issues that need to be improved by the Solana team.

I am a positive thinker, so I hope that the Solana team with the best people in this market can handle dangerous errors on the Solana network this year to ensure that we won't have any more major problems at the hottest point of the bullrun in 2025.

Solana has cooperated with Filecoin to improve the quality of infrastructure^[1], I think the Solana team is also working on core blockchain development.
[1] Solana cooperates with Filecoin: the Solana blockchain will be more stable?

[Stompix]

Although it is very fast and meets user needs, the problem of Solana blockchain lies in stability. We have witnessed Solana's 11th outage and cannot predict when the 12th will occur. PoH is really new and has many issues that need to be improved by the Solana team.

The problem is the validators, you can't just have it all, you have to trade things and Solana validators are both the reasons for the speed and easiness of propagations but also the Achille's heel when they fail. There is basically no redundancy there, if one major network goes down so do like 1/3 of the validators and it just stops and things will just keep being the same, it's simply impossible for Solana to go to a completely decentralized model where everyone runs it's node, not while asking for 256Ram and 10Gbit upload.

Anyhow, technicalities won't matter for the price, nowadays nobody gives a damn, there have been coins that have suffered 51% attacks and 6 hours of chain re-orgs and are still alive.