Jupiter:- Equities form the basis of capital markets. There’s an emerging trend in web3 to bring these equities on blockchain. Recently, Kraken joined hands with Backed and Solana Foundation to launch xstocks. With this, the leading exchange is offering tokenized US stocks and ETFs on the Solana blockchain. Now, in another exchange moving towards this, Jupiter has signed a memorandum with the stock exchange of Kazakhstan. According to the MoU signed, companies listed at AIX or the Kazakhstan’s stock exchange will have the option to pursue dual listing mechanism. According to this, a company listed at exchange can pursue the traditional mechanism of IPOs as well as can issue its tokenized stocks on Solana. Equities to Get Duel Listings – On Solana and On Exchange The partnership is built between AIX, Intebix, Solana and Jupiter. Intebix, a tokenization platform, the Solana Foundation, and Jupiter will jointly explore the regulatory, technical,… Read More at Coingape.com
In comparison, Ethereum (ETH)generated 46.28 million in fees in February, with 7.49 million as of March 7. While these numbers suggest Solana is ahead, Michael Nadeau, the founder of The DeFi Report, claims this comparison may be misleading.
Although Nadeau acknowledges Solana’s impressive growth, he cautions that it might be less organic than it seems.
“But if you look under the hood, it looks like a house of cards,” he wrote.
According to Nadeau, over the past 30 days, 17.31% of addresses have contributed to 95% of the total fees generated on Ethereum. For Solana, the figure is strikingly small, only 1.26%.
Nadeau added that Wintermute, a prominent market-making firm, is the primary driver behind this fee generation. The rest of the fee is attributed to bots.
He claimed that these wallets drive the network’s activity through practices such as sandwich attacks and pumping meme coins. This often comes at the expense of retail investors.
For context, a sandwich attack is a front-running strategy in which an attacker exploits large trades. The attacker buys the asset before the large trade, anticipating a price increase, and sells afterward, profiting from the price movement while negatively impacting the original trader.
Nadeau cautioned that the reliance on a small subset of users for fee generation creates vulnerabilities. If retail traders become aware of the extent of bot-driven manipulation, they may withdraw from the ecosystem. This, in turn, could significantly impact Solana’s revenue projections.
“Nothing against Solana. Massive comeback story. But my sense tells me another period of “chewing glass” is yet to come,” he concluded.
Solana’s speed and cost efficiency have made it a favorite among developers and traders. However, this concentration of fees has raised concerns among market analysts.
“When 95% of fees come from 1.26% of users, it’s less “decentralized finance” and more “exclusive finance,” Superchargd co-founder wrote on X.
Another user also warned that Solana may not thrive well as the industry matures and free market forces fully take effect.
“Solana doesn’t have a future; it’s a Ponzi scheme designed for grifting,” he said.
“Solana is a complete house of cards built on wash trading bots and centralized control,” a user remarked.
He also emphasized that validators profiting from failed transactions and the rise of Solana meme coins have harmed the space.
The criticism comes just after financial giant Franklin Templeton predicted in a report that Solana’s DeFi ecosystem could rival—and even surpass—Ethereum’s market valuation. The firm highlighted Solana’s scalability, low fees, and surging user activity as key factors driving its potential.
Amid the mounting criticism, Solana faces a pivotal moment. While its technological advancements and cost-efficiency have earned it a loyal following, its centralized fee-generation model and reliance on market manipulation tactics could pose significant risks to its future. How Solana adapts to these concerns will determine whether it can sustain its growth or struggle to maintain relevance.
The US Department of the Treasury predicts that the stablecoin market could reach a market capitalization of $2 trillion by 2028. This marks a sevenfold increase from its current level of approximately $240 billion.
Meanwhile, MEXC COO has stated that this milestone may be achieved sooner, possibly by next year.
Why the Stablecoin Market is Set to Explode by 2028
Institutional interest in crypto products, such as Bitcoin (BTC) and Ethereum (ETH) ETFs, is increasing. Notably, stablecoins play a central role in blockchain-based transactions, especially as the tokenization of financial assets expands.
Additionally, clearer regulatory frameworks, including the potential inclusion of stablecoins in liquidity management strategies and allowing banks to access public blockchains, would integrate stablecoins into traditional financial systems. The developments position these assets for significant market expansion.
“Evolving market dynamics, structures, and incentives have the potential to accelerate stablecoins’ trajectory to reach ~$2 trillion in market cap by 2028,” the report read.
Currently, USD-pegged stablecoins dominate the market, accounting for over 99% of the market cap. Tether (USDT) is the leading player, with a capitalization of $145 billion. Circle’s USDC (USDC) comes in second with a market cap of $60 billion.
Thus, their growing adoption could significantly impact the banking and Treasury markets. Stablecoins, particularly those that are yield-bearing or offer unique payment features, could lead to a shift in demand from traditional bank deposits to stablecoins. This, in turn, could force banks to raise interest rates or find alternative funding sources.
Additionally, the report noted that stablecoin adoption could increase demand for short-term Treasuries. This is contingent on the passing of the GENIUS Act. The proposed bill mandates that stablecoin issuers hold US Treasuries as reserves.
Additionally, the reserve requirements outlined in the bill could help mitigate the risk of de-pegging. This would reduce the need for issuers to rely on the Federal Reserve during times of stress or volatility.
“Demand in stablecoins could have a net neutral impact on the US money supply, however the attractiveness of USD-pegged stablecoins could drive currently non-USD liquidity holdings into USD,” the report added.
MEXC COO Predicts $2 Trillion Stablecoin Market by 2026
“With many sovereign banks and corporations exploring stablecoin issuance, particularly in other fiat currencies, and governments prioritizing regulation clarity, the stablecoin market cap could exceed $2 trillion by 2026,” Jin told BeInCrypto.
Jin highlighted that ongoing macroeconomic uncertainty will likely drive further growth in stablecoin market capitalization.
“Despite the recent volatile market landscape, stablecoin demand has remained resilient, growing over $38 billion year-to-date. Stablecoins now account for 1% of the global M2 USD money supply, processing over $33 trillion in volume in the last year, including $2.8 trillion in the last month alone,” she said.
According to Jin, the expanding role of these assets in decentralized finance (DeFi), cross-border payments, and digital asset trading is expected to be crucial in the next phase of cryptocurrency market growth and the broader mainstream adoption of digital assets.
Their capacity to provide stability and liquidity, particularly during times of market volatility and liquidity shortages, solidifies their importance as a core asset for institutional and retail investors.
