05 Jan 2024 Simon Briggs
Solana’s Network Beats Ethereum In Stablecoin Transfer Volumes
In the stablecoin space, the Solana blockchain recently beat Ethereum with a record-breaking weekly transfer volume of $103.01 billion, exceeding Ethereum's $90.87 billion.
Source: Artemis Terminal
Sophisticated attack kits that target Solana's decentralized applications (dApps) have, however, hampered the company's growth; from December 2023, security companies like Chainalysis and CertiK have observed a spike in these scams. Users of Solana are seriously at risk from these drainer kits, which are frequently marketed in private hacker groups and on the dark web. A phony video purporting to be of Solana's co-founder Anatoly Yakovenko has been making the rounds on social media, highlighting the deepfake scams that the blockchain industry is also facing.
Solana stablecoin volumes explode
For the first time ever, the weekly stablecoin transfer volume on the Solana blockchain has surpassed that of Ethereum and all other chains, marking another significant milestone. In fact, data shows that Solana saw a 612% rise in monthly transfer volume.
Solana surpassed Ethereum, which had $90.87 billion in transactions, and other well-known chains with an astounding transfer volume of $103.01 billion. For example, Tron and BNB Chain recorded $82.29 billion and $14.65 billion in volumes, respectively. On the other hand, Arbitrum dropped 26.2% and ended up at $8.11 billion.
Several well-known stablecoins, including USD Coin (USDC) and Tether (USDT), are hosted by Solana, demonstrating its strong position in the stablecoin space.
Though they have smaller market caps, Solana also supports other stablecoins, such as Parrot USD (PAI) and UXD Stablecoin (UXD).
Still, Solana's recent accomplishments go much beyond transfer quantities. In terms of daily and weekly decentralized exchange (DEX) trade volumes, the blockchain has also eclipsed Ethereum. In addition, it now leads the market in the volume of trading in perpetual futures, which is a key indicator of investor interest and market liquidity.
These changes mark a change in the dynamics of the cryptocurrency world as the new year begins; they are more than just numbers on a chart. The ascent of Solana puts Ethereum's long-standing hegemony in jeopardy and heralds a more vibrant and varied blockchain environment.
Solana’s network is at risk of scams
Solana's recent popularity has coincided with a rise in scams of all kinds. A new generation of fraudsters has been posing a danger to the blockchain community by focusing on Solana-based decentralized apps (dApps). These illicit entities are using highly advanced drainer kits to steal the stablecoins from consumers. Numerous blockchain security companies have taken notice of this concerning trend, and analysts are beginning to express concerns about the growing frequency of these attacks.
A senior intelligence analyst at Chainalysis named Brian Carter provided additional information about the adaptability and efficiency of these draining kits. He says that the most effective ones are able to attack multiple assets using a variety of techniques, not just Solana.
Carter also brought out a troubling connection to Russia, pointing out that the selling of these drainer kits is being driven by a tiny group of developers who frequently communicate in Russian. There are over 6,200 users in the largest group devoted to Solana drainers.
Carter admitted that scammers frequently use phishing emails that contain dangerous links. They take advantage of the fear of missing out (FOMO) in groups around decentralized finance (DeFi) by bombarding users with links to phony websites that seem authentic. These websites are frequently advertised through Discord communities and hacked social media accounts.
A blockchain security company called CertiK has seen an increase in scammers advertising Solana drainer kits from December 2023, when the excitement around SOL truly began to build to a pinnacle. These kits may be purchased for as little as $250 per month and are found on the dark web and in private hacker chat groups.
Analyst Joe Green of CertiK disclosed that it is still unknown how much has been taken overall using Solana drainers. Though some of these drainers function similarly to Ethereum Virtual Machine (EVM) drainers, where the supplier keeps a portion of the assets that are taken, he does note this. Phishing on the Solana network is not new, he continues, but there is a greater emphasis on targeting specific members of the ecosystem now that the price of Solana has recently increased.
Blockaid, a Web3 security company, has released research that emphasizes the advanced nature of these drainers. It was stated that a certain Solana drainer was able to pilfer SOL and SPL tokens valued at hundreds of thousands of dollars. Because these drainers are so sophisticated, they can trick Solana wallets' simulations and trick users into unintentionally authorizing harmful transactions.
Thread from deepfakes
Crypto enthusiasts are concerned about more than just Solana drainers. Keeping online authenticity and security has become more difficult as a result of the advent of deepfakes. An event involving Anatoly Yakovenko, a co-founder of Solana, has brought attention to the mounting concerns surrounding this technology.
Yakovenko can be seen proclaiming a "historic day" for Solana in a video that has been making the rounds online and even showing up as an advertisement on sites like YouTube and X. He expresses gratitude to the SOL community and provides a giveaway via a website and QR code. But this video is a hoax, even though it looks authentic.
The Solana Foundation's chief of strategy, Austin Federa, voiced his grave concerns regarding the growing prevalence of deepfakes and artificial intelligence (AI)-generated content. Federa highlights Solana's proactive approach in combatting these fakes, even if she acknowledges that the problem is beyond the crypto business. The foundation reports events as soon as they happen, but the platforms that host these fakes are ultimately responsible for taking them down.
