Solana: Will stablecoin inflows help SOL?

Journalist

Posted: November 26, 2023

• Solana observed a massive spike in stablecoin volume.
• The price of SOL grew, however sentiment around it fell.

Solana [SOL] has been one of the protocols that has faced the most ups and downs over the past few years. Amidst multiple downtimes, and the FTX FUD, the Solana protocol has remained resilient.

More stablecoin flows

According to recent data, Solana’s monthly USD Coin [USDC] transfer volume surpassed $70 billion in one month. This notable transaction number was good news for the platform, as it made more people interested in using its services.

Really encouraging to see such a strong ecosystem growing for USDC on Solana. ~850B annual run-rate in Tx volume. https://t.co/rTQhn6fvQF

— Jeremy Allaire (@jerallaire) November 25, 2023

The number of Daily Active Addresses on the Solana network grew materially as well. Additionally, due to the high stablecoin activity, the Daily Transactions occurring on the blockchain platform grew from 20 million to 51.63 million in 24 hours.

This surge in both active addresses and transactions underscored the rapid expansion and widespread usage of Solana. It also solidified its position as a thriving and actively engaged network.

Source: Artemis

The TVL and DEX volumes of Solana witnessed a rise as well. This meant that more people were trading on the network. The TVL, at press time, stood had crossed $600 million, a sure sign that more people were trusting the blockchain with their money.

This was an additional spot of good news, as Solana had suffered the most in 2022, with multiple outages plaguing the network. Not to mention, its association with failed crypto exchange FTX had nearly plummeted SOL to the depths of despair by the end of the year.

Source: Artemis

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Will you sell your SOL?

At press time, SOL was trading at $58.41. Over the last week, the price of SOL surged tremendously. However, the Social Volume metric around the token fell during this period. This fall was also reflected in Solana’s Weighted Sentiment, which stood at -0.268 at press time.

This meant that there was more negative sentiment around the token than positive at press time.

Source: Santiment