Solana Stablecoin Boom Fueled by GENIUS Act: Is Ethereum Losing Ground?
According to a recent survey, the Solana blockchain is driving the sharp increase in the entire market capitalization of stablecoins.
Danny Nelson, an analyst at Bitwise Investments, claimed in a recent article on X that Solana’s supply of circulating stablecoins had increased more than any other since the GENIUS Act was passed.
Solana’s Stablecoin Supply Jumps 40% After GENIUS Act
In terms of stablecoin hosting, Solana is currently the third-largest blockchain. However, Nelson noted that over the last three months, it has been the blockchain with the fastest stablecoin supply growth.
President Donald Trump signed the GENIUS Act on July 18. The rules governing the issuance and distribution of stablecoins are made clearer by this measure. At the time of its signing, Solana’s stablecoin market value was approximately $10 billion. It has increased by 40% in the last three months.
Data from the on-chain analysis platform rwa.xyz indicates that the current market value of Solana’s stablecoin is approximately $13.9 billion. With a $172.4 billion market capitalization, Ethereum is still the clear market leader for stablecoins.
The Allure of Speed and Low Costs
However, Ethereum’s stablecoin growth has been a much slower 27% since the GENIUS Act was passed. Even slower growth rates were observed on stablecoin-focused blockchains such as Base, Hyperliquid, and Arbitrum. In the meantime, the supply of Tron, the second-largest blockchain in terms of stablecoin market share, has decreased by around 4%.
According to Nelson, banks and businesses have been searching for locations to test stablecoins ever since the GENIUS Act. According to him, low cost and fast speed are crucial components of the GENIUS Act, and payment-focused stablecoins are a major component.
According to Nelson, Solana, which has long fared better than Ethereum in several categories, may now be ready to take on the market leader.
He pointed out that throughout the past 30 days, the growth rate has been especially rapid. Solana’s stablecoin supply increased by about $3 billion, or 25%, during this time. However, Ethereum’s stablecoin market capitalization increased by only 8% during that same period.
The anticipation of a wider stablecoin acceptance is linked to this rise. It also seems to have something to do with the fourth-quarter launch of Solana spot ETFs.
The price of SOL is anticipated to be significantly impacted by the October 10 introduction of five new Solana spot ETFs, beginning with Grayscale’s Solana Trust (GSOL). The current price of SOL is approximately $230.60.
A Different Perspective
Despite Nelson’s claims, some crypto investors have actively pushed back. Crypto investor @SamAltcoin_eth pointed out that while ETH holds 54% of all stablecoins, Solana has just 5%.
This means that despite Solana’s recent growth, the absolute number of stablecoins on the Ethereum blockchain is still overwhelming.
It’s crucial to consider RWA TVL (Real-World Asset Total Value Locked), another Ethereum enthusiast noted. According to him, Solana’s stablecoin grew by $2.4 billion over the past 30 days, while Ethereum’s TVL has increased by $10 billion, giving Ethereum a lead of more than four times.
In the same period, Ethereum’s RWA (Real World Assets) TVL rose by $1.9 billion, compared to just $190 million on Solana, a 10x lead in Ethereum’s favor.
Disclaimer and Risk Warning
coinweck does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. The image used in this article is for informational purposes only and is provided to us by a third party. coinweck should not be held responsible for image copyright issues. Contact us if you have any issues or concerns. Readers should do their research before taking any actions related to the company.