- Solana stablecoin supply has reached a record $10.5 billion, driven by the launch of Donald Trump’s TRUMP memecoin and surging DEX activity.
- USDC and USDT lead stablecoin growth on Solana, with daily DEX trading volumes exceeding $25 billion, accounting for 74% of blockchain-wide activity.
Layer-1 blockchain, Solana, is witnessing a significant surge in stablecoin supply, driven largely by a trading frenzy surrounding Donald Trump’s memecoin, TRUMP. According to data from Artemis, the total stablecoin supply on Solana has reached a record $10.5 billion, marking a twofold increase since January.
Circle’s USDC has been the primary driver of this growth, with its circulation on Solana surpassing $8 billion after adding over $4 billion in January alone. Meanwhile, Tether’s USDT supply on the network doubled, rising from $917 million to $2 billion.
Stablecoins, crucial for liquidity in the crypto economy, have become a cornerstone of activity on Solana, enabling seamless trading in rapidly growing sectors like memecoins and decentralized finance (DeFi).
The memecoin mania hit new heights with the launch of the TRUMP coin on January 17, following the U.S. President’s election victory. Initially available on Solana-based decentralized exchanges (DEX) like Meteora, the token quickly attracted substantial trading volumes, driving liquidity and stablecoin inflows. To acquire TRUMP coin, traders first purchased USDC, fueling its growth on the network.
An investor on Solana reportedly faced losses nearing $900,000 across 13 trades, with significant hits on memecoins like ALON and TRUMP, while earning just $231 in profit on a single trade.
The spike in activity extended to Solana’s DEX ecosystem, where daily trading volumes soared past $25 billion, accounting for 74% of DEX trading across all blockchains, according to a report by Coinbase Institutional Research.
“Staggering numbers,” Sean Farrell, Fundstrat’s head of digital asset research, remarked in a social media post, reflecting on the network’s record-breaking performance.
The heightened activity also boosted Solana’s native token, SOL, which gained 20% this week, outperforming major assets like Bitcoin (up 2%) and other members of the CoinDesk 20 Index.
Beyond USDC and USDT, Solana has been attracting new stablecoin issuers. First Digital, a Hong Kong-based company, recently added support for its $1.8 billion FDUSD stablecoin on Solana. Additionally, Sky, formerly known as MakerDAO, integrated its yield-generating USDS stablecoin onto the network in November, further expanding Solana’s stablecoin ecosystem.
Editorial Note: This news article has been written with assistance from AI. Edited & fact-checked by Harshajit Sarmah.
