- Solana is dominating Ethereum in terms of stablecoin payment volume, according to AllianceBernstein analysts
- Solana accounts for 63.6% of the total value of stablecoins transferred, while Ethereum comes in second at 26.6%
- Despite Solana’s growth, analysts note it still has a long way to go in terms of scalability for widespread consumer payments
A new report from investment firm AllianceBernstein shows that Solana is now beating Ethereum in stablecoin payment volume. Solana’s blockchain is being used for more cross-border stablecoin transfers compared to Ethereum. This is a big change from previous market cycles where Ethereum dominated.
Solana Leads in Stablecoin Transfers
According to data from Artemis, Solana now has a 63.6 billion market share of stablecoins transferred versus Ethereum’s 26.6 billion. Solana is being widely used to transfer stablecoins like USDC without the volatility risk of coins like Bitcoin or Ethereum.
The Bernstein report notes that Solana’s growth shows it has overtaken Ethereum’s market share for value transferred. However, Solana still has a long way to go when it comes to scalability.
Why Solana is Winning
Solana became popular last year after Visa said it would use Solana’s tech for faster payments. Solana Pay also partnered with Shopify so merchants can accept USDC.
Solana is likely taking so much market share because it’s a faster blockchain than Ethereum. However, congestion issues this year have highlighted the need for Solana to continue improving scalability.
Stablecoins Use Cases
Stablecoins are a key part of crypto ecosystems. They allow funds to be moved around without price volatility. Major stablecoins run on blockchains like Ethereum, Tron and Solana.
Despite Solana’s growth with stablecoins, the report says it hasn’t expanded into mainstream consumer or business payments yet. But the increased adoption shows Solana’s big potential, especially as the crypto market grows.
Conclusion
Solana has made huge strides in stablecoin payments, overtaking Ethereum’s market share according to Bernstein. More adoption by payments giants like Visa bodes well for Solana’s future. But the network needs to keep improving scalability to reach its full potential. The growth so far shows Solana’s possibilities in stablecoin payments and beyond.
