sUSD hits $10M deposits as Solana ‘overtakes’ Ethereum – Details inside!

• Solana’s sUSD hits a deposit milestone post-launch.
• The network recorded the second-largest inflows after Bitcoin.

In a remarkable debut, Solayer USD [sUSD]—Solana’s [SOL] first real-world asset [RWA]-backed synthetic stablecoin, exceeded 10 million USDC in deposits within its first hour. 

According to data from Lookonchain, the asset saw nearly 5,900 deposits. Notably, at press time, its Total Value Locked (TVL) stood at $11.31 million.

Source: Solayer

sUSD on Solana 

sUSD was launched this week by the restaking protocol, Solayer Labs, in collaboration with OpenEden Labs, a tokenized T-Bill issuer. 

It is a decentralized, yield-bearing stablecoin pegged 1:1 to the U.S. dollar and backed by U.S. Treasury Bills. 

Designed as a reference for the 2022 interest-bearing token extension, sUSD reinforces its USD peg’s stability. This enhances yield generation for the stablecoin ecosystem.

The protocol operates as a non-custodial Request-for-Quote (RFQ) marketplace, where only token holders can mint or burn sUSD. Like sSOL, sUSD serves as collateral for the Open Internet, backed by real-world infrastructure. 

As Proof-of-Stake (PoS) collateral, sUSD supports off-chain systems running alongside Solana, including bridges, oracles, and Layer 2 networks.

Lastly, sUSD automatically earns a 4.33% interest from U.S. TBills in USDC without the need for minting or staking.

Impact on SOL’s price 

Meanwhile, SOL has continued to enjoy the sector-wide bull run prompted by Bitcoin’s [BTC] remarkable comeback.

The launch of sUSD propelled it above the $180 mark for the first time in nearly three months.

At press time, the altcoin shed some of its gains to exchange hands at $175.

As per CoinMarketCap, this represented a depreciation of 0.53% over the last day. However, this loss was overshadowed by the weekly gains of 1.76%.

Solana’s growing appeal over Ethereum

The launch of sUSD marked a significant milestone for Solana’s ecosystem. It introduced a yield-bearing stablecoin.

It also signaled growing investor interest in Solana as an alternative asset. This was evidenced by its remarkable inflows.

As per the weekly CoinShares report, Solana recorded $10.8 million in inflows, ranking only second behind Bitcoin’s $920 million inflows.

Source: CoinShares

However, the same wasn’t the case for Ethereum [ETH], which experienced $34.7 million in outflows last week. Yet, in year-to-date inflows [YTD] Ethereum still overtook Solana.

While Bitcoin continues to benefit from U.S. political factors, Solana’s inflows emphasized its distinct value proposition in scalability and decentralized applications.