The Solana network is leading the way in stablecoin transaction volume, capturing 36% of the market share in February. With an increase in the stable transaction volume, the 6-month-long downtrend in SOL prices has started to consolidate.
SOL captures 36% of the february market share
The Solana network’s adjusted stablecoin transaction volume was the highest, as it captured 36% of the market share for February. The Ethereum network captured the second-highest market share with 30%, while Tron and Base were the next highest, respectively.
Usually, when on-chain transaction volume is considered, the adjusted volume is used to sieve and remove wash trading, where users trade with themselves to inflate volume.
The adjusted volume also means that CEX internal flow: transfers between wallets inside a centralized exchange, which don’t represent actual movement in or out of the market, have also been removed to avoid misrepresentation.
After the rubble is cleared, the clean data on the Solana network’s stablecoin transaction volume remains. High stablecoin activity on the Solana network indicates that the blockchain could be actively used for real-world financial purposes such as payments, remittances, and DeFi transactions, rather than just speculation.
It reflects strong network adoption and liquidity, as users and developers take advantage of Solana’s fast and low-cost transactions. Surpassing competitors like Ethereum and BNB Chain in adjusted stablecoin volume suggests that users trust Solana for high-volume stablecoin operations.
SOL ends 6-month long downtrend
With these stellar on-chain metrics, SOL prices, which have been on a downtrend for the past 6 months, have started to consolidate. Although the coins’ price is at 2024 January levels, there is hope that a bull rally is coming.
Primarily, although the coin has been on a downtrend, it has been crashing inside the falling wedge. It is a bullish pattern, which, when completed, will break out and surge. With the pattern nearing completion and the breakout about to happen, there is a technical sign that there is momentum building behind the scene.
The relative strength index (RSI) indicator, which measures the strength of the coin, is making higher highs while the coin is still moving sideways. This divergence is bullish. It shows that SOL is gaining momentum, but it has not just been reflected on the price chart.
However, there will come a point when the bullish momentum intensifies and reaches its peak, and the SOL prices will start to move. When this happens, SOL will test the $93 resistance level, where the 50-day moving average is, before appreciating further.
