Trump Effect? Solana Stablecoin Supply Jumps 73% Since Mid-January

Christian Encila

4 months ago

2 mins read

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An unprecedented stablecoin supply of 73% has occurred on the Solana blockchain since the middle of January. A new initiative that has captured the attention of the crypto community, the $TRUMP memecoin, was launched at the same time as this spike.

Solana has been a significant actor in the crypto space for a long time; however, the release of this memecoin has sparked new interest, propelling the network’s stablecoin ecosystem to new heights.

TRUMP Token Drives Significant Stablecoin Supply Increase

Its launch spurred activity on Solana’s distributed markets and further investments into the network. More stablecoins are now available thanks to the rise of money entering the market, therefore enhancing Solana’s significance as a key blockchain for distributed finance.

Its debut attracted new investments to the network and increased activity on Solana’s decentralized markets. The increase in money flowing into the market has led to more stablecoins being available, boosting Solana’s role as an important blockchain for decentralized finance.

After Donald Trump launched his memecoin, $TRUMP, on Solana, the network saw a spike in money inflows, leading to record [decentralized exchange] trade activity, according to CCData.

CCData reports that Solana has overtaken BNB Chain as the third-largest blockchain network in terms of stablecoin supply. It continues to fall behind Tron and Ethereum.

SOLANA STABLECOIN SUPPLY SKYROCKETS 73% -WHAT’S DRIVING IT?

Solana just hit $11.1B in stablecoin supply, jumping 73% since mid-Jan.

Big catalyst? Trump’s memecoin ($TRUMP) triggering insane capital inflows + record DEX trading.

Now Solana’s the #3 blockchain for stablecoins,… pic.twitter.com/9WAow0sKFd

— IBC Group Official (@ibcgroupio) January 31, 2025

USD Coin Dominates Solana Stablecoin Market

USD Coin (USDC) continues to be the most prevalent stablecoin asset in Solana, accounting for an impressive 78% of the network’s total stablecoin supply. The token’s widespread adoption across decentralized applications (dApps) and Solana’s ongoing relationship with Circle are both distinct indications of USDC’s dominance.

SOL is currently trading at $239. Chart: TradingView

In contrast, USDT, representing merely 12% of the stablecoin supply on Solana, bags the second place. This dynamic illustrates the impact of USDC’s preeminence on Solana’s stablecoin market, notwithstanding the sporadic appearance of alternative currencies like USDt.

Solana’s Recent User Growth

In addition to having an effect on Solana’s stablecoin market, the excitement around the $TRUMP token has significantly increased the number of on-chain users. Hundreds of thousands of new users have joined the Solana network in an attempt to join the $TRUMP frenzy.

This spike in activity has given the blockchain fresh life and led to higher transaction volumes and user engagement on Solana’s decentralized markets. $TRUMP is a perfect example of how novelty tokens can encourage new adoption, and it is clear that the memecoin movement is helping Solana’s general growth.

Featured image from SolanaFloor, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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