Blockchain battles heat up as Solana hits $1 billion USDC in circulation

Karthik Subramanian

The blockchain ecosystem has seen tremendous growth over the last year or so as we are seeing different networks having healthy competition with each other for users and developers as well.

solana

Till a year or so back, Ethereum was the clear leader and any developer who wanted to develop a dApp on the blockchain had a no-brainer choice in front of them and went to develop on the Ethereum network. But things seem to have changed, for the better, over the last year or so. We have been seeing some strong competition to Ethereum for the attention of the developers and the leaders so far in that have been Solana and Polygon.

While Polygon is a Layer 2 protocol on the Ethereum network but without some of the drawbacks of the ETH network like high gas fees and network congestion, Solana is a whole new blockchain by itself which has been placing itself as competition to ETH and it has been gaining some solid traction over the last few months.

All the networks realize that the developers are the key for their growth and expansion and have been trying hard to woo the developers as they know that once the developers come in, dApps get built on the network and the users will automatically follow. Each of the blockchains has its own USPs with Ethereum having a solid, well-established network and community while Polygon cuts down on the fees but with the similar network characteristics of Ethereum. Solana, on the other hand, boasts very low fees and very high speeds up to 50,000 transactions per second which would be helpful for developers who rely on building dApps that need high transaction speeds.

In a significant metric, the USDC in circulation (yes USDC is available both on Ethereum and Solana as well) on Solana has crossed $1 billion as of yesterday which means that the users and the developers are getting warmed up to Solana over the last few months. The trigger for this growth seems to have come in January when Circle, the owners of USDC, rolled out full support for USDC on Solana and since then, the circulation of USDC has shot up significantly as it crossed $500 million in April and has now crossed $1 billion as of yesterday.

There seems to be some healthy competition brewing among the various blockchain network which should be good for the overall crypto ecosystem as it prevents any single network from monopolizing the network and competition always brings in better products to the end-users, which in this case is better dApps.

Read this next

Digital Assets

Societe Generale launches its own cryptocurrency, EURCV

French banking giant Societe Generale has launched its own euro-pegged stablecoin, EUR CoinVertible (EURCV). This move by France’s third-largest bank reflects the increasing trend of mainstream financial institutions embracing cryptocurrencies on a global scale.

Executive Moves

Stelios Eleftheriou leaves NAGA Group to join BVNK

BVNK, the crypto-powered payments and banking platform for businesses, has appointed FX industry veteran Stelios Eleftheriou, who has a colorful career across the gaming industry, as Business Development Director (CFD & iGaming).

Retail FX

CAPEX.com introduce ETFs on UAE, Saudi stocks

Abu Dhabi-based broker CAPEX.com has expanded its asset class offerings to include a new suite of Exchange-Traded Funds (ETFs) tailored for the United Arab Emirates (UAE) and Kingdom of Saudi Arabia (KSA) markets.

Institutional FX

Tradeweb Markets surges past $1.80 ADV in November

Tradeweb Markets Inc. (Nasdaq: TW) has reported a total trading volume of $38.2 trillion and a record average daily volume (ADV) of $1.80 trillion for November 2023. These figures mark a 59.2% year-over-year increase.

Inside View

A Mission in Accounting

Ismael Haber, an auditor and accountant, has made it his mission to help businesses improve the quality of their financial information by eliminating fraud and error. In the next five years, the demand for these specific financial services, being external financial audits, forensic accounting, and other fraud preventive and detective services is envisaged to increase.

Institutional FX

CME Group to launch new spot FX marketplace ‘CME FX Spot+’ in 2024

US derivatives exchange, CME Group today announced plans to introduce ‘CME FX Spot+’, a novel spot foreign exchange (FX) marketplace.

Interviews

FMLS:2023: Andrew Mreana provides an exclusive sneak peek into cTrader’s 2024 innovations

cTrader’s focus for the next year would be on developing new tools for Introducing Brokers (IBs) and partners, particularly those related to algorithmic (algo) trading, the company’s head of growth told FinanceFeed in an exclusive interview at the Finance Magnates London Summit 2023.

Digital Assets

Grayscale’s Ethereum ETF stalls: SEC extends review to January 2024

The United States Securities and Exchange Commission (SEC) has extended the evaluation period for Grayscale’s proposed Ethereum spot ETF.

Institutional FX

BMLL completes China equity data offering: Shanghai, Shenzhen, and Hong Kong

“Demand for China data has never been higher. This is set against a general industry trend of increased market participant sophistication, and an increasing demand for quality historic market data to understand market microstructure and venue behaviour. Market participants need to get the full picture of market quality, liquidity and order book dynamics to ultimately make better informed decisions on the markets they trade and the venues they run.”

<