Solana edges out Ethereum, Tron in stablecoin volumes

• Solana’s market share soared to 33.76%, compared to just 1.17% a year ago.
• SOL regained its bullish strength, bouncing above $100 for the first time in more than two weeks.

Solana [SOL] became the biggest blockchain for stablecoin transfers in January, surpassing the likes of Ethereum [ETH] and Tron [TRX] for the first time.

According to AMBCrypto’s examination of Artemis data, stablecoins worth $497 billion were transferred on the Solana blockchain during January, a record high.

With this, Solana’s market share soared to 33.76%, compared to just 1.17% a year ago.

Source: Artemis

Solana drives stablecoin transfers

The demand for stablecoins shot up drastically over the past two months, primarily driven by optimism linked to spot Bitcoin [BTC] ETFs approval.

Positive forecasts about the market led many investors to accumulate top cryptos using stablecoins.

However, unlike the bear market, which saw Ethereum and Tron cornering more than 80% of the stablecoin volumes, the latest surge was mainly driven by Solana.

AMBCrypto examined the above graph further and noticed a five-fold jump in monthly stablecoin volumes on Solana between November and January.

In comparison, Ethereum’s volume rose only by 31%, while Tron’s stablecoin trades effectively remained the same.

Is USDC behind the turnaround?

USD Coin [USDC] was the dominant stablecoin on the Solana blockchain, with over 56% share of the total supply, according to DeFiLlama.

Interestingly, USDC’s market cap on Solana increased by more than 14% over the past month, while most other stablecoins recorded a drop.

This strongly indicated that USDC volumes on Solana were the primary drivers in boosting overall stablecoin transfer volumes.

SOL is back to good health

In another good news, the network’s native token SOL regained its bullish strength, bouncing above $100 for the first time in more than two weeks.

How much are 1,10,100 SOLs worth today?

According to CoinMarketCap, SOL was exchanging hands at $104 as of this writing, marking a 30% gain over the past week.

As expected, the bullish price action led traders to go long on the asset. SOL’s bullish bets outnumbered bearish bets in the last two days, AMBCrypto observed using Coinglass data.

Source: Coinglass