Stablecoin Liquidity Explodes on Solana—Why Institutions Are Fleeing Ethereum’s Costly Network

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• Ethereum faces pressure as gas fees hit $50 during peaks; Solana processes 2,000+ TPS versus Ethereum’s 15.
• Experts warn Ethereum may lose institutional users if scalability upgrades lag behind Solana’s efficient infrastructure.

A growing number of crypto broker-dealers are now using the Solana blockchain for transactions exceeding $1 million, according to analyst MartyParty.

#Solana leads monthly DEX volume for the fifth straight month, hitting $105.86 billion.

Accumulate $SOL before the markup. pic.twitter.com/COoPw3obq5

— MartyParty (@martypartymusic) March 8, 2025

This shift marks a departure from Ethereum, which has historically dominated institutional crypto transfers. Data indicates Solana’s lower transaction fees and faster processing times are driving the change.

#Solana SIMD-0228 Vote continues: 137 validators voted, 15.4% of stake, 12.1% Yays 3.2% Nays pic.twitter.com/PpyRngTTP7

— MartyParty (@martypartymusic) March 9, 2025

MartyParty shared findings on social media, noting broker-dealers execute transfers between $1 million and $10 million for tasks like liquidity management, debt repayment, and balancing institutional portfolios.

#Solana SIMD-0228 voting continues Yay 11.7% Nay 2.9% 15% of stake voted so far 33% required to pass. pic.twitter.com/6JybvYFvcR

— MartyParty (@martypartymusic) March 9, 2025

Ethereum’s rising gas fees and network congestion have made these routine operations costlier and slower, prompting firms to explore alternatives. Solana’s average transaction fee remains below $0.01, compared to Ethereum’s fees, which can exceed $50 during peak activity.

Solana has also seen stablecoin liquidity rise this year, with its total value locked (TVL) climbing from $1.4 billion in January to $4.9 billion in June. Higher liquidity reduces price slippage during large transfers, ensuring assets move efficiently between wallets. By contrast, Ethereum’s TVL growth has stagnated, rising only 18% in the same period.

ETHNews analysts emphasized that Solana’s reliability for high-volume transfers reflects improved trust in its technical infrastructure. Ethereum’s scalability challenges, however, persist. Its network processes 12-15 transactions per second (TPS), while Solana handles over 2,000 TPS. For broker-dealers managing time-sensitive trades, speed directly impacts profitability.

This trend raises questions about Ethereum’s ability to retain institutional users. If gas fees and congestion remain unresolved, more entities may migrate transactions to faster, cheaper blockchains.

Solana’s adoption by financial platforms could incentivize further development of its ecosystem, including decentralized finance (DeFi) tools tailored for large-scale operations.

Ethereum developers continue working on upgrades like DankSharding to improve scalability, but these solutions remain in testing phases. Meanwhile, Solana’s existing capabilities meet immediate demands, positioning it as a pragmatic choice for cost-conscious firms.

As of today, Ethereum (ETH) is trading at $2,023.30, reflecting a 3.04% decline in the past 24 hours. Over the past week, ETH has dropped by 3.67%, and in the last month, it has seen a significant 20.50% decrease.

Over the past year, Ethereum has struggled, showing a 47.90% decline from its previous highs. This downtrend indicates that ETH is facing strong resistance and bearish sentiment in the market.

Ethereum’s all-time high was $4,868.00 on November 10, 2021, while its lowest price was $81.79 on December 15, 2018. The recent decline suggests that ETH is currently in a correction phase, potentially due to macroeconomic conditions, regulatory concerns, or market-wide bearish sentiment.

Technical indicators currently signal a strong sell, both in short-term and long-term timeframes. Moving averages and oscillators are showing bearish momentum, indicating that ETH could continue to decline unless buyers step in at key support levels.

The next major support zone is around $1,900-$1,850, while resistance is seen at $2,200-$2,300. If Ethereum fails to hold its support, a drop towards $1,750 could be possible.