Solana Stablecoin Supply Hits $10B Milestone as TRUMP Token Frenzy Drives Record DEX Volumes
Introduction
According to one researcher, additional issuers have lately extended their stablecoins to the network; however, Circle’s USDC dominated stablecoin growth on Solana.
Key Highlights
Solana’s stablecoin supply doubled this month to 10 billion, driven by non−chaintradingfrenzywiththelaunchofDonaldTrump−tiedTRUMPmemecoin.TRUMPwasfirstavailabletotradeonSolana−baseddecentralizedexchangeMeteorapairedagainstUSDC,drivingdemandforthestablecoin, Coinbaseanalystsnoted.Solanaalsobookedarecord25 billion daily DEX trading volume, while its native token SOL was the best-performing asset in the CoinDesk 20 Index.
Solana’s Stablecoin Surge
Solana (SOL), the layer-1 blockchain designed for high-speed and low-cost transactions, has been the center of a trading frenzy.h Donald Trump’smeme coin has driven theg stablecoin supply on the network to anewh record high.
According to data source Artemis, the total stablecoin supply on Solana has surged to 10.5billion,doublingsincethestartofJanuary.Circle′sUSDCledtheincrease, surpassing 8 billion in total circulation on Solana, adding more than 4billionthismonth,whileTether′sUSDTgrewto2 billion from $917 million, per Artemis. Stablecoins are a key piece of infrastructure in the crypto economy, serving as a popular source of liquidity for crypto trading.
TRUMP Token Frenzy
Solana and its ecosystem of -inbuilt-in protocols have become bustling hubs for trading and launching tokens in hot, fast-growing crypto sectors, such as meme coins and crypto AI agents.
The network’s stablecoin liquidity growth has been steady over the past months as digital asset markets have rejuvenated with crypto-friendly Trump’s election victory. Still, it skyrocketed with the launch of the TRUMP coin on Jan. 17, the “official” meme coin tied to the U.S. President. Released on Solana, the token garnered massive trading volume across decentralized exchanges, driving transaction activity and liquidity inflows to the network.
Decentralized Exchange (DEX) Activity
Before the token got listed on popular centralized exchanges like Binance and Coinbase, trading with the TRUMP coin was first available on decentralized exchange (DEX) Meteora paired against the USDC stablecoin, David Duong and David Han from Coinbase Institutional Research noted in a Friday report. That said, fast-moving traders first needed to acquire USDC to buy the coin, driving USDC inflows to the network.
Along with stablecoin growth, trading volume on Solana-based decentralized exchanges (DEX) soared to record highs of more than $25 billion daily, accounting for 74% of the overall DEX trading volume on all blockchains, the report noted.
“Staggering numbers,” Sean Farrell, head of digital asset research at Fundstrat, said in an X post.
SOL Token Performance
The increased activity was reflected in Solana’s native token (SOL) price, posting the largest gain this week with 20% among the broad-market CoinDesk 20 Index members, vastly outperforming bitcoin’s (BTC) 2% advance.
Emerging Stablecoin Issuers
While USDC and Tether’s USDT dominate the stablecoin market on Solana—as they do in the broader crypto landscape—there’s a growing number of up-and-coming issuers that recently expanded to the blockchain, noted Tom Wan, head of data at Entropy Advisors.
Last week, Hong Kong-based First Digital added native support on Solana for its $1.8 billion FDUSD fiat-backed stablecoin. Defi lending behemoth Sky, formerly MakerDAO, also brought its yield-generating USDS stablecoin to the network in November.