A analysis report discovered that Solana SOL/USD has emerged as the brand new chief within the realm of blockchain payments.
What Occurred: In its new report, Bernstein, a analysis and brokerage agency, attributes Solana’s success to its streamlined structure, The Block reported.
In comparison with Ethereum’s complicated Layer-2 bridging system, Solana presents a single-layer design with direct on-ramps from crypto exchanges.
This, coupled with its excessive transaction throughput and low charges, has made Solana a extra enticing platform for stablecoin settlements.
Whereas Solana is gaining floor in transfers, Ethereum ETH/USD maintains a major edge in general stablecoin issuance.
USDC USDC/USD boasts a provide of $26.4 billion on Ethereum, dwarfing its $2.2 billion presence on Solana.
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Why It Issues: Regardless of its progress in stablecoin settlements, Solana nonetheless faces hurdles in changing into a mainstream cost platform.
The analysts at Bernstein level out that Solana wants a major improve in transaction processing capability to deal with broader client and business-to-business funds.
Current community congestion on Solana, brought on by an inflow of spam transactions, underscores the scalability problem.
The event crew is actively engaged on software program updates, however a whole resolution might take time.
The report additionally explores the broader stablecoin market, which has rebounded to $150 billion following the bear market.
Tether USDT/USD and USDC stay the dominant gamers, accounting for practically 97% of the market share.
Whereas the preliminary utility of stablecoins was primarily inside the cryptocurrency ecosystem, the report identifies rising adoption by main cost processors like Visa and Paypal.
Moreover, client fintech platforms like Seize and Mercado Libre are exploring their use in cross-border funds.
The growing worth of stablecoin transfers in Q1 2024 suggests a possible for continued progress.
This development highlights the rising adoption of “digital {dollars}” inside the crypto ecosystem and past.
What’s Subsequent: Benzinga’s upcoming Future of Digital Assets conference on Nov. 19 guarantees to be a invaluable platform for traders and fanatics to realize insights into tendencies in the cryptocurrency markets.
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