GENIUS Act Fuels Stablecoin Boom on Solana — Is Ethereum Losing Ground?
The whole market cap of stablecoins is rising quickly, and a brand new report suggests the Solana blockchain is main the cost.
In a latest put up on X, Bitwise Investments analyst Danny Nelson argued that Solana has seen essentially the most vital improve in its circulating stablecoin provide for the reason that passage of the GENIUS Act.
Solana’s Stablecoin Supply Jumps 40% After GENIUS Act
Solana is at present the third-largest blockchain by stablecoin internet hosting. But Nelson pointed out that, regardless of this, it has been the fastest-growing blockchain for stablecoin provide over the previous three months.
On July 18, President Donald Trump signed the GENIUS Act. This invoice clarifies laws on the issuance and distribution of stablecoins. It was signed when Solana’s stablecoin market cap was round $10 billion. In the three months since, it has surged by 40%.
According to information from the on-chain evaluation platform rwa.xyz, Solana’s stablecoin market cap is now at about $13.9 billion. Ethereum, with a market cap of $172.4 billion, stays the undisputed chief within the stablecoin market.
The Allure of Speed and Low Costs
However, for the reason that GENIUS Act was handed, Ethereum’s stablecoin growth has been a a lot slower 27%. Stablecoin-focused blockchains like Base, Hyperliquid, and Arbitrum noticed even decrease progress charges. Meanwhile, Tron, the second-largest blockchain by stablecoin market share, has seen its provide fall by almost 4%.
Nelson believes that for the reason that GENIUS Act, corporations and banks have been in search of locations to experiment with stablecoins. He says that payment-focused stablecoins are a key a part of the GENIUS Act and that low value and high velocity are important.
Nelson believes that Solana, which has lengthy outperformed Ethereum in these areas, may now be poised to problem the market chief.
He famous that the expansion charge has been notably quick within the final 30 days. During this era, Solana’s stablecoin provide grew by roughly $3 billion, a 25% improve. In the identical timeframe, nonetheless, Ethereum’s stablecoin market cap grew by simply 8%.
This progress is tied to the expectation of a broader stablecoin adoption. Additionally, it seems to be linked to the upcoming launch of Solana spot ETFs within the fourth quarter.
The launch of 5 new Solana spot ETFs, beginning with Grayscale’s Solana Trust (GSOL) on October 10, is anticipated to have a significant impact on SOL‘s price. At the time of writing, SOL is buying and selling at round $230.60.
A Different Perspective
Despite Nelson’s claims, some crypto buyers have actively pushed again. Crypto investor @SamAltcoin_eth pointed out that whereas ETH holds 54% of all stablecoins, Solana has simply 5%.
This implies that regardless of Solana’s latest progress, absolutely the variety of stablecoins on the Ethereum blockchain remains to be overwhelming.
Another Ethereum fanatic added that it’s vital to have a look at RWA TVL (Real-World Asset Total Value Locked). He mentioned that over the past 30 days, Ethereum’s stablecoin TVL has elevated by $10 billion, whereas Solana’s grew by $2.4 billion, giving Ethereum a lead of over 4x.
In the identical interval, Ethereum’s RWA (Real World Assets) TVL rose by $1.9 billion, in comparison with simply $190 million on Solana, a 10x lead in Ethereum’s favor.
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