According to stablecoin transfer volume metrics divided by blockchain, Solana’s daily transfer volume has decreased from a range of $75 billion to $100 billion daily to around $7 billion daily. Additionally, a crypto advocate expressed doubts about the legitimacy of Solana’s previous stablecoin transfer volumes, indicating that the metrics were highly overstated.
Solana's Stablecoin Transfer Volume Drops Drastically Amid Scrutiny
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Stablecoin Metrics Reveal Sharp Decline in Solana’s Transfer Volume
Data from the analytics and onchain fundamentals platform artemis.xyz reveals a significant decline in Solana’s stablecoin transfer volume in mid-June. Before this period, Solana led in stablecoin volume, averaging between $75 billion and $100 billion daily. However, on June 12, 2024, those figures plummeted, dropping Solana below Ethereum and Tron in transfer volume rankings. On that date, Solana’s stablecoin transfer volume fell to $10 billion.
Wazz Crypto, the first to uncover several Solana stablecoin anomalies at the end of January 2024, pointed out a significant discrepancy in Solana’s stablecoin transfer volumes. According to Wazz, Solana’s daily stablecoin volume surged from $200-$300 million to an astounding $30 billion within six months, a figure that appears highly dubious. Wazz asserted that the primary culprit behind this inflated volume is the Phoenix dex, where all orders, filled or unfilled, are recorded onchain, leading to an artificial boost in transfer volumes.
This week, Artemis.xyz acknowledged Wazz’s findings and provided additional context. “As mentioned in Wazz Crypto’s thread, much of overall volume is driven by [two] sources: MEV Bot 7rhxnL and Phoenix dex, accounting for ~$1tn of total transfer volume over the last month,” Artemis wrote. The team also mentioned that MEV Bot 7rhxnL has experienced a substantial decline in transfer volume. On June 10, Artemis reported that the Solana Foundation revoked delegations for several validators involved in sandwiching.
“The June 10 date corresponds directly with the day MEV Bot 7rhxnL drastically reduced its stablecoin activity,” Artemis said. “It is reasonable to assume that MEV Bot 7rhxnL operated via one of these sandwiching validators and that the bot’s strategy is no longer viable given the undelegation,” the platform’s X account added. Artemis also announced plans to introduce two new stablecoin metrics to simplify adjustments for automated actors. These metrics aim to better differentiate between genuine peer-to-peer stablecoin transfers and bot-driven automated transactions.
What do you think about the Solana stablecoin transfer volume dropping and the scrutiny surrounding metrics associated with the chain? Share your thoughts and opinions about this subject in the comments section below.
