Layer 1 blockchain Solana has seen an uptick in activity of late, with stablecoin transfer volumes in particular surging to a record monthly high. 

Data from blockchain analytics platform Artemis shows that Solana stablecoin transfer volume for January currently sits at around $316 billion, second only to Ethereum’s $328 billion. 

Solana’s stablecoin transfer volume has grown by 2,500% since the $11.56 billion recorded in January 2023. The drastic surge in volume began in early December around the time of the JTO airdrop, after which Solana flipped Ethereum in decentralized exchange and NFT daily trading volume. 

Some of the reasons driving these high transfer volumes include the increasing use of the USDC stablecoin and Paxos’ regulated stablecoin USDP on the Solana blockchain. The network has also made a comeback in the realm of decentralized finance (DeFi), with the total value locked (TVL) on Solana rising to $1.37 billion at the time of writing. 

Solana now accounts for 32% of all stablecoin volume, while Ethereum accounts for 33%. For context, Solana’s dominance has seen a major leap from a year ago, when it accounted for just 1% of the market.

Meanwhile, although Solana’s native token SOL has posted an impressive 260% gain over the last year, its price has been under pressure for the better part of a month. 

Market participants have attributed this decline to bankrupt crypto exchange FTX, which has been liquidating part of its $4.2 billion SOL holdings.