Solana’s stablecoin supply has surged by 73% in just 15 days, driven by the launch of TRUMP and MELANIA meme coins.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
3 mins read
Solana, the Ethereum Layer-1 competitor, has registered a 73% surge in the stablecoin supply on its blockchain just within the last 15 days. This is due to strong demand for the TRUMP TRUMP $12.02 24h volatility: 15.1% Market cap: $2.41 B Vol. 24h: $1.69 B and MELANIA MELANIA $0.69 24h volatility: 1.4% Market cap: $104.71 M Vol. 24h: $25.08 M meme coins following their launch around Donald Trump‘s inauguration on January 20. This makes Solana the third-largest blockchain in stablecoin supply surging past BNB Chain.
Crypto research firm CCData reported on Thursday that Solana’s stablecoin supply has surged by 112% on the monthly time frame, moving to a massive $11.1 billion. It also noted:
“This increase coincided with a surge of capital inflows to the network following Donald Trump’s launch of his memecoin, $TRUMP, on Solana, which resulted in record [decentralized exchange] trading activity.”
CCData also shows that Solana is now the third-largest stablecoin network behind Ethereum and Tron. with its strong demand in January, it has put behind the likes of BNB Chain.
Source: CCData
Circle’s USDC USDC $1.00 24h volatility: 0.0% Market cap: $58.29 B Vol. 24h: $7.10 B has been the most dominant stablecoin on the Solana blockchain capturing a massive 78% of the market share. On the other hand, Tether’s USDt USDT $1.00 24h volatility: 0.1% Market cap: $143.34 B Vol. 24h: $35.66 B trails with only 12% share on Solana. With a market cap of roughly $50 billion, USDC is the second-largest stablecoin, following Tether’s USDT. It has been closing the gap recently with its top rival as Tether’s USDT faces major delistings from crypto exchanges in Europe, as the Markets in Crypto Assets (MiCA) rule come into play.
Due to its fast and low-cost transactions, Solana has become home to launching key meme coin projects. In 2024, the network saw heavy meme coin activity and the strong trading euphoria around these crypto tokens created further demand for stablecoins.
What triggered the massive stablecoin surge in January this month was the launch of the Official Trump (TRUMP) memecoin, and the Official Melania (MELANIA) token. These two crypto triggered massive hype and demand while sucking out liquidity from the rest of the crypto market. Amid strong demand, Circle minted nearly $8 billion USDC this month itself, growing its market cap by nearly 20%.
The Solana price SOL $134.2 24h volatility: 9.6% Market cap: $67.68 B Vol. 24h: $3.44 B is up by 24% over the past month and is currently trading at $234.5. However, the SOL price action has been largely volatile swinging between the lows of $185 to the highs of $287 in January. Market analysts remain hopeful that Solana could rally past $300 moving ahead.
However, the SOL price has been showing weakness and trading in a very narrow range in a shorter time frame. As per crypto analyst Incomesharks, the SOL price can further retrace to $230 before reversing its trajectory.
Source: IncomeSharks
On the other hand, Coinbase Derivatives has submitted a filing to list new futures contracts for Solana. The exchange plans to offer these cash-settled contracts on a monthly basis, with listings expected to begin on or after February 2025. This can provide some liquidity to Solana driving the SOL price higher to $300 in the coming months.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
