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- 1 The Solana network has managed to remain stable this year.
- 2 Solana was trading at a market price of $21.21 at the press time
Centralized crypto exchange OKX has begun USDT-SOL and USDC-SOL pairs to meet the trading demand, according to the official announcement. Solana (SOL) has been experiencing positive sentiments in the market for the past few days. The crypto asset was trading at a market price of $21.21 at the press time.
Solana May Gain Momentum
Active in over 180 markets, the Seychelles-based company holds a massive 50 Million users globally. More users are likely to get exposure to Solana. The network currently has nearly 40 Million unique users. The stablecoin pairs may add to the momentum given that both are preferred cryptocurrencies when it comes to hedging volatility.
However, Circle’s USDC de-pegged during March 2023 following the California-based Silicon Valley Bank collapse, falling by 13 percent. According to Circle’s official blog post, the state-chartered commercial bank held over $3 Billion in cash reserves.
The startup bubble had a devastating effect on the crypto market. Additionally, crypto organizations like Paxos and Coinbase reportedly had an exposure to the failed United States banks.
Prior to this, Sam Bankman-Fried’s FTX had already crippled the crypto market as their native token, FTT, went through a liquidity crisis. The company filed for bankruptcy in November 2022. Furthermore, it hired capital market company Galaxy Digital to liquidate its holdings, news agency Reuters reported.
Tether’s USDT remained immune to those events. Nonetheless, given that it is part of a large crypto segment, it is not immune to user sentiments. The largest stablecoin did suffer the consequences following Terra’s ecosystem collapse. Reports indicate that users pulled over $10 Billion from Tether in May 2022, dropping the circulating supply to $73 Billion.
It’s Going Well For The Network So Far
The Solana network has managed to remain stable this year. The network experienced only a single network outage in 2023 in contrast to 14 outages last year. However, the only outage, which happened in February 2023, became the largest in the ecosystem’s history.
A report by CoinShares, an investment manager, highlights that the ecosystem witnessed $24 Million in inflows, the largest since March 2022. Web3 gaming experiences are contributing to the network at large. Star Atlas’ Star Labs accounts for nearly 15 percent of daily Solana transactions.
Furthermore, petty transactions on the network are gaining traction. Galaxy Research, a subsidiary of Galaxy Digital, posted on X (formerly Twitter) that petty USDC transactions are happening frequently. The post reads, “The high frequency of small, dollar-denominated tx on Solana highlights the network’s potential for supporting payments activity.”
Solana’s price appears to be going through a breakdown, with the value declining by 8% in a week while maintaining. The launch of trading pairs may help should the OKX users choose to try their hands.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
