- Solana beats Tron and Ethereum in stablecoin trading volume with rapid growth and bullish sentiment.
- Tron faces legal issues as SEC charges founder Justin Sun, potentially affecting its credibility.
Solana’s rise to prominence in the cryptocurrency ecosystem has been remarkable. According to data from Artemis, in December, Solana recorded a stablecoin transfer volume of $24.58 billion in USDC (USD Coin), firmly establishing its dominance. This figure far exceeded Tron’s $6.54 billion in USDT (Tether) and Ethereum’s $3.88 billion in DAI (Dai Stablecoin).
There has been a notable shift in the status quo.
Here are the stablecoin transfer volumes for the month of December:
@solana: $24.58B USDC
@trondao: $6.54B USDT
@ethereum: $3.88B DAI pic.twitter.com/vjdQVAD1qp
— Artemis (@artemis__xyz) January 2, 2024
Based on on-chain data, Solana has remained optimistic, as its blockchain ecosystem has managed to dethrone Ethereum from the top spot in the stablecoin market for the second week running. Significantly, transfers of its stablecoin surged, indicating its standing as a possible Ethereum substitute. In the last week, Solana’s blockchain had over $10.3 billion in new trade activity.
Surpassing Tron and Ethereum
The pivotal moment occurred during the week preceding December 25th, when Solana surpassed Tron in stablecoin volume for the initial instance. In this timeframe, Solana reported a weekly trading volume of $103.01 billion for stablecoins, which was $12.14 billion more than Ethereum’s $90.87 billion.
Solana’s phenomenal rise extended beyond the stablecoin industry. It saw an astounding 950% price increase in the previous year, peaking at $121. Solana and Ethereum competed fiercely during this time in several areas, most notably the trading volume of stablecoins, which increased by an astounding 2,213% in just three months. In addition, over the same period, the Solana blockchain registered 27.17 million stablecoin transactions, more than Ethereum’s 1.17 million transactions.
Tron Faces Legal Hurdles
Unlike Solana, who rose quickly, Tron encountered several legal difficulties. The unregistered offer and sale of securities backed by cryptocurrency assets is the basis for allegations that the U.S. Securities and Exchange Commission (SEC) filed against Justin Sun, the founder of Tron, and related companies, such as Tron Foundation Limited and BitTorrent Foundation Ltd.
These allegations, combined with concerns of wash trading, have raised regulatory scrutiny and potential negative impacts on Tron’s credibility and trust within the crypto community.In spite of the legal obstacles, Tron has actively looked for ways to improve its ecosystem. Notably, TRON DAO and ChainGPT have formed a strategic alliance to fuse blockchain technology and artificial intelligence (AI) to improve customer service via chatbots. Tron’s position in the market might be strengthened by these advancements, especially as interest in AI increases.
Despite obstacles, TRON has consistently shown user engagement by maintaining an average of 1.9 million daily active accounts. On the other hand, a 4.7% fall in daily active accounts from the prior month indicates a stable user base with a little decline in transactional activity.
Current Price Movements
At the time of this report, TRX was trading at $0.107, showing a marginal decline of 2.07% in the last 24 hours.
Meanwhile, SOL was priced at $98.44, experiencing a 7.88% and 6.77% decrease in the past 24 hours and seven days, respectively. SOL encountered resistance at around $115, with potential implications for its price movements in the near future.
Despite the recent fluctuations, SOL’s strong fundamentals indicate potential price appreciation in the coming year, with the possibility of revisiting the $200 price level and beyond.
