The entire market cap of stablecoins is rising quickly, and a brand new report suggests the Solana blockchain is main the cost.
In a current submit on X, Bitwise Investments analyst Danny Nelson argued that Solana has seen probably the most important improve in its circulating stablecoin provide because the passage of the GENIUS Act.
Sponsored
Sponsored
Solana’s Stablecoin Provide Jumps 40% After GENIUS Act
Solana is at present the third-largest blockchain by stablecoin internet hosting. However Nelson identified that, regardless of this, it has been the fastest-growing blockchain for stablecoin provide over the previous three months.
On July 18, President Donald Trump signed the GENIUS Act. This invoice clarifies rules on the issuance and distribution of stablecoins. It was signed when Solana’s stablecoin market cap was round $10 billion. Within the three months since, it has surged by 40%.
In accordance with information from the on-chain evaluation platform rwa.xyz, Solana’s stablecoin market cap is now at about $13.9 billion. Ethereum, with a market cap of $172.4 billion, stays the undisputed chief within the stablecoin market.
The Attract of Velocity and Low Prices
Nonetheless, because the GENIUS Act was handed, Ethereum’s stablecoin progress has been a a lot slower 27%. Stablecoin-focused blockchains like Base, Hyperliquid, and Arbitrum noticed even decrease progress charges. In the meantime, Tron, the second-largest blockchain by stablecoin market share, has seen its provide fall by practically 4%.
Nelson believes that because the GENIUS Act, firms and banks have been in search of locations to experiment with stablecoins. He says that payment-focused stablecoins are a key a part of the GENIUS Act and that low price and excessive velocity are important.
Nelson believes that Solana, which has lengthy outperformed Ethereum in these areas, might now be poised to problem the market chief.
Sponsored
Sponsored
He famous that the expansion fee has been notably quick within the final 30 days. Throughout this era, Solana’s stablecoin provide grew by roughly $3 billion, a 25% improve. In the identical timeframe, nevertheless, Ethereum’s stablecoin market cap grew by simply 8%.
This progress is tied to the expectation of a broader stablecoin adoption. Moreover, it seems to be linked to the upcoming launch of Solana spot ETFs within the fourth quarter.
The launch of 5 new Solana spot ETFs, beginning with Grayscale’s Solana Belief (GSOL) on October 10, is anticipated to have a significant affect on SOL‘s price. At the time of writing, SOL is trading at around $230.60.
A Different Perspective
This means that despite Solana’s current progress, absolutely the variety of stablecoins on the Ethereum blockchain remains to be overwhelming.
Stablecoin Metrics(Community). Supply: rwa.xyz
One other Ethereum fanatic added that it’s vital to have a look at RWA TVL (Actual-World Asset Whole Worth Locked). He mentioned that over the past 30 days, Ethereum’s stablecoin TVL has elevated by $10 billion, whereas Solana’s grew by $2.4 billion, giving Ethereum a lead of over 4x.
In the identical interval, Ethereum’s RWA (Actual World Property) TVL rose by $1.9 billion, in comparison with simply $190 million on Solana, a 10x lead in Ethereum’s favor.
