May 28, 2024

Solana leads the battle for blockchain payments.


Against the background of the market liquidity growth, improving investor sentiment, and stablecoin dynamics, the Solana network has “led the battle” for the adoption of blockchain payments. This was reported by The Block citing a report by Bernstein analysts.

“The big change in this cycle is Solana’s dominant market share (43%) in the context of the value of stablecoins transferred compared to the market leader in the previous rally, Ethereum,” the experts stated.

Solana’s single-layer construction compared to Ethereum’s complex L2 networks provides direct access to cryptocurrency exchanges, according to the company.

Furthermore, the high throughput and low transaction costs have led to an increase in the number of transactions with stablecoins in the network.

Bernstein: Solana leads the battle for blockchain paymentsBernstein: Solana leads the battle for blockchain payments
Volume of stablecoin transfers in various networks. Data: The Block.

However, in terms of the volume of native stablecoins issued on the network, Solana still lags behind Ethereum, with values of $2.2 billion and $26.4 billion respectively.

“The value of stablecoins recorded on the blockchain indicates a strong trend towards the integration of the digital dollar into the crypto trading ecosystem, including as a currency for cross-border payments,” the report said.

Despite pilot projects with Visa and Shopify, analysts noted that Solana still needs to penetrate more consumer payments or the B2B sector.

One of the main obstacles to mass adoption, according to Bernstein, is the scalability issue. They believe Solana needs to increase its throughput by 15-20 times – from approximately 700 to over 10,000 transactions per second.

Since the beginning of the year, Solana has accounted for 49.3% of global investor interest in blockchain ecosystems, according to CoinGecko’s calculations.

According to the forecast of Colosseum co-founder and former head of growth at Solana Foundation Matti Tair, the network will surpass Ethereum in the number of consumer Web3 applications.

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