Solana: Can high stablecoin volumes be enough for SOL to see green

• Stablecoin volumes on Solana witnessed a surge.
• Overall activity on the network continued to decline.

Solana [SOL] has witnessed a massive decline in price over the last few days. Despite the struggles, there were a few areas where the protocol saw growth.

Turning up the volume

One of them was the surge in Solana’s stablecoin volume. The daily transfer volume of the stablecoin USDC on Solana surpassed that of every other blockchain.

The consistent outpacing of daily transfer volume by the stablecoin USDC on the blockchain signals a positive trend.

A high daily transfer volume indicates increased usage and demand for transactions on the Solana network. This heightened activity can contribute to the overall vibrancy and liquidity of Solana’s ecosystem, attracting more users to the network.

? BREAKING: Stablecoin $USDC on @solana continues to outpace every other chain in daily transfer volume. pic.twitter.com/py2OGEGZjh

— SolanaFloor | Powered by Step Finance (@SolanaFloor) January 25, 2024

The TVL and DEX volumes on the network also grew over the last month. The rise in TVL reflected the total value of assets staked or utilized within the network, underscoring growing interest and confidence in Solana-based projects.

Simultaneously, the surge in DEX volumes signified heightened trading activity on decentralized exchanges built on the Solana blockchain, illustrating the platform’s appeal for users engaging in DeFi.

Source: Artemis

Looking at the DeFi sector

Despite the growth in TVL and DEX volumes, overall network activity on Solana saw a decline of 14.7% over the past month. This reduction in activity suggested a potential shift in user engagement or transactional patterns within the Solana ecosystem.

However, it’s noteworthy that, concurrently, the revenue generated by the Solana protocol experienced a remarkable growth of 100.2% during the same period.

This surge in revenue may be attributed to various factors, including increased usage of specific protocols, new fee structures, or other mechanisms contributing to the economics of the Solana network.

Source: token terminal

Looking at the price

Regarding the price of SOL, recent observations show that it was trading at $87.95, reflecting a 1.09% increase in the last 24 hours.

How much are 1, 10, or 100 SOL worth today?

The Relative Strength Index (RSI) has experienced an upward surge, signaling bullish momentum for the SOL token.

This increase in RSI suggests a potential strength in the ongoing bullish trend, indicating positive market sentiment towards SOL in the short term.

Source: Santiment