- Solana’s stablecoin supply has surged past $3 billion, rebounding from a low of $1.4 billion during the bear market
- Circle’s USDC stablecoin dominates Solana’s stablecoin ecosystem, accounting for 73% of the total supply
- The increase in stablecoin supply on Solana reflects heightened liquidity and capital inflow, driven by the growth of memecoins and DeFi activity on the network
The stablecoin supply on the Solana blockchain has rebounded and surpassed $3 billion, with Circle’s USD Coin (USDC) being the dominant stablecoin on the network. This growth in stablecoins indicates increased liquidity and capital inflows into Solana’s ecosystem.
Solana’s Stablecoin Supply Rebounds
After plummeting to $1.4 billion during the crypto bear market in 2022, Solana’s stablecoin supply has steadily increased over the past 3 months. According to data from Artemis, stablecoins on Solana now total $3.12 billion, a 55.72% increase since the start of 2023. Meanwhile, stablecoin transfer volume has surged 164% to $1.4 trillion, reflecting significant activity on the network.
USDC Dominates Solana’s Stablecoin Landscape
USDC makes up the vast majority (73%) of stablecoin supply and volume on Solana. This dominance comes after Circle launched its Cross-Chain Transfer Protocol on Solana on March 26, allowing seamless USDC transfers between Solana and other chains. On April 2nd alone, USDC accounted for $6.369 billion of transfer volume on the network. USDT and EUR∑ round out the top 3 stablecoins on Solana but lag far behind USDC.
Why Are Stablecoins Growing on Solana?
The influx of stablecoins on Solana coincides with more capital flowing into the network, the surge in memecoins, and expanding DeFi activity. Despite ties to the FTX fallout, Solana has seen ecosystem growth, attracting new users and major partnerships with Visa, Shopify, and others. Stablecoins enable users to move funds between fiat currencies and Solana’s digital assets. Their growth is a positive sign for Solana’s maturing landscape.
Conclusion
The expanding supply and volume of stablecoins on Solana, especially USDC, signals growing adoption of the network. More capital and liquidity could support further development in Solana’s DeFi ecosystem. However, Solana is still far from its 2022 stablecoin peak, indicating there is room for additional growth.
