Solana vs Base, Stablecoin Payment Market Competition Intensifies – Squeeze Labs

# Competition Heats Up in Blockchain Payments as Stablecoins Gain Ground According to Squads Labs, the integration of stablecoins into the global financial infrastructure is intensifying competition among blockchains in the payments market. Solana and Base are emerging as prime candidates for stablecoin payments, grabbing the spotlight. Companies and developers must carefully weigh factors such as performance, cost, market demand, and regulatory clarity when choosing their payment infrastructure. # Growth and Competition in the Stablecoin Payments Market Squads Labs reports that stablecoins are playing a crucial role in the global financial system as of January 2025. The annual transaction volume of stablecoins surged to $8.3 trillion in 2024, up from $5.7 trillion the previous year. Notably, stablecoin payments are expanding in key sectors, including e-commerce, B2B transactions, and international remittances. The report indicates that major corporations are actively employing stablecoins. SpaceX is accounting for part of its global Starlink revenues in stablecoins, and in September 2024, PayPal performed its first commercial stablecoin transaction via SAP's digital currency platform. Moreover, prominent U.S. firms such as Overstock, Chipotle, Whole Foods, and GameStop are also adopting stablecoin payments. As the stablecoin payment market rapidly grows, businesses and developers must select the most suitable blockchain to establish their payment infrastructure. Amid this market shift, Squads Labs identifies Solana and Base as key players in the realm of payment blockchains. # Solana vs. Base: Key Requirements for Payment Blockchains According to the report, blockchains for stablecoin payment infrastructure must meet four critical requirements: performance, cost, market demand, and regulatory clarity. Squads Labs evaluates both Solana and Base against these criteria, highlighting their respective strengths. ## Performance: TPS and Settlement Speed The report underscores that transactions per second (TPS) and final settlement time are the most crucial elements in a payment system. Solana handles transactions swiftly, reaching 66% consensus within 800ms and achieving finality within 13 seconds. In contrast, Base offers quick pre-confirmation with two-second block intervals but finalizes settlements on Ethereum, taking about 15 minutes. Despite Base’s centralized structure enabling fast pre-confirmations, it poses risks like censorship and single points of failure. ## Cost: Predictable Transaction Fees Squads Labs notes that Solana maintains stable transaction costs through local fee markets that split data hotspots, showcasing high throughput. Additionally, Solana's scalability is expected to enhance further with Jump Crypto's independent validation client, ‘Firedancer,’ which has been tested to handle 1 million TPS. Conversely, Base enhances performance through software optimizations based on a single-threaded Ethereum Virtual Machine (EVM). Its transactions are batch-processed off-chain and ultimately settled on Ethereum, ensuring constant fees regardless of Ethereum's congestion. However, Base’s transaction fees directly benefit Coinbase, generating at least $56 million in revenue as of 2024. ## Market Demand: Stablecoin Adoption Rate Squads Labs' analysis highlights Solana as a leader in real economic value (REV), generating $751 million in revenue in Q4 2024, the highest among blockchains. As of January 2025, total value locked (TVL) in stablecoins reached a record $10.7 billion. While Base holds a smaller TVL, it has become a widely used Layer 2 (L2) network. Its rapid growth is driven by user influx via Coinbase and benefits like zero transaction fees for USDC transactions. ## Regulatory Clarity Regulatory environment is another vital aspect. Base lacks a native token, freeing it from direct regulatory issues, but Coinbase is embroiled in legal disputes with the U.S. Securities and Exchange Commission (SEC). Base's centralized structure might lead to regulatory actions like user blocking and KYC requirements. In contrast, Solana operates a decentralized network with over 1,000 validators, making it resistant to control by any single entity and providing greater flexibility in response to regulatory changes. # The Future of Stablecoin Payments: Will Solana Lead? Squads Labs concludes that Solana and Base each offer robust payment infrastructure with distinct strengths. Base is expanding rapidly in the U.S. market through its links with Coinbase and USDC. However, its centralized operations pose long-term regulatory risks. Solana, leveraging its decentralized infrastructure, is securing competitiveness in the global stablecoin payments market. Its low transaction fees and fast transaction speeds support a wide array of payment applications, establishing it as a trusted, neutral platform for businesses and developers. The report emphasizes that as the global stablecoin payment market continues its rapid growth, companies must make strategic, long-term decisions rather than simple technological choices. While Base may expand quickly within the U.S., Solana is likely to become the central platform for stablecoin payments in the long run.