Solana Stablecoin Supply Hits $10.5B Amid TRUMP Token Frenzy and Record DEX Volumes
Solana (SOL), the high-speed blockchain known for low-cost transactions, has become a hotspot for crypto activity, with Donald Trump’s TRUMP token fueling unprecedented stablecoin growth. The network’s total stablecoin supply has soared to $10.5 billion, doubling since the beginning of January, according to Artemis data.
Circle’s USDC has been the primary driver of this surge, surpassing $8 billion in circulation on Solana, an increase of more than $4 billion this month. Tether’s USDT also grew significantly, climbing to $2 billion from $917 million. Stablecoins serve as vital infrastructure for liquidity in the crypto ecosystem, enabling seamless trading.
The surge in stablecoin activity coincided with the Jan. 17 launch of TRUMP coin, a memecoin tied to the U.S. President, on Solana. The token, initially traded on decentralized exchange (DEX) Meteora against USDC, spurred significant transaction activity and liquidity inflows as traders rushed to acquire USDC to participate in the frenzy.
“Staggering numbers,” remarked Sean Farrell, Fundstrat’s head of digital asset research, in a post on X.
The increased activity also propelled trading volumes on Solana-based DEXs to record highs, exceeding $25 billion daily. Solana accounted for 74% of total DEX volume across all blockchains. This heightened demand translated into a 20% weekly price gain for Solana’s native token, SOL, far outpacing bitcoin’s (BTC) modest 2% rise.
In addition to USDC and USDT, newer stablecoin issuers have been expanding their presence on Solana. Hong Kong-based First Digital recently added native support for its $1.8 billion FDUSD stablecoin, while DeFi giant Sky (formerly MakerDAO) introduced its yield-generating USDS stablecoin in November.
The surge underscores Solana’s growing role as a hub for trading and innovation in fast-evolving crypto sectors like memecoins and decentralized finance. As Tom Wan, head of data at Entropy Advisors, noted, “Solana’s expanding stablecoin ecosystem reflects its growing dominance in the crypto economy.”
