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Bernstein: Solana" leads the battle "for blockchain payments

Forklog / 09.04.2024 / 14:48
Bernstein: Solana" leads the battle "for blockchain payments

Against the background of growing market liquidity, improving investor sentiment and the dynamics of stablecoins, the Solana network "led the battle" for the introduction of blockchain payments. This is reported by The Block with reference to a report by Bernstein analysts.

"The big change in this cycle was the dominant market share of Solana (43%) in the context of the value of transferred stablecoins compared to the market leader of the previous rally in the face of Ethereum," the experts said. 

Solana's single-level design, compared with complex L2 networks on Ethereum, provides direct access to cryptocurrency exchanges, according to the company. 

At the same time, high bandwidth and low transaction costs have led to an increase in the number of "stable coins" settlements on the network. 

The volume of transfers of stablecoins in various networks. Data: The Block.

However, in terms of the volume of native stablecoins released on the network, Solana still lags behind Ethereum - the figures are $2.2 billion and $26.4 billion, respectively. 

"The value of stablecoins fixed in the blockchain indicates a strong trend towards the introduction of the digital dollar into the crypto trading ecosystem, including as a currency for cross—border payments," the report says.

Despite pilot projects with Visa and Shopify, analysts noted that Solana has yet to penetrate the broader consumer payments or B2B sector.

Among the main obstacles to mass adoption at Bernstein was the problem of scalability. In their opinion, Solana needs to increase its throughput 15-20 times — from about 700 to more than 10,000 transactions per second. 

Recall that since the beginning of the year, Solana accounted for 49.3% of global investor interest in blockchain ecosystems, CoinGecko calculated.

According to the forecast of Matty Taylor, co-founder of Colosseum and former head of the Solana Foundation's growth department, the network will outpace Ethereum in terms of the number of consumer Web3 applications.

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