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

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 networks stablecoin ecosystem to new heights.

TRUMP Token Drives Significant Stablecoin Supply Increase

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

Its debut attracted new investments to the network and increased activity on Solanas decentralized markets. The increase in money flowing into the market has led to more stablecoins being available, boosting Solanas 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% -WHATS DRIVING IT?
Solana just hit $11.1B in stablecoin supply, jumping 73% since mid-Jan.
Big catalyst? Trumps memecoin ($TRUMP) triggering insane capital inflows + record DEX trading.
Now Solanas 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 networks total stablecoin supply. The tokens widespread adoption across decentralized applications (dApps) and Solanas ongoing relationship with Circle are both distinct indications of USDCs dominance.

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

Solanas Recent User Growth

In addition to having an effect on Solanas 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 Solanas 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 Solanas general growth.

Featured image from SolanaFloor, chart from TradingView

Text source: NewsBTC

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