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Solana stablecoin market cap doubles to $11.4B

Solana stablecoin market cap doubles to $11.4B

GrafaGrafa2025/02/04 09:00
By:Mahathir Bayena

The market capitalisation of stablecoins on the Solana (CRYPTO:SOL) blockchain more than doubled in January, rising from $5.1 billion at the start of the month to $11.4 billion by its end.

This surge is attributed to increased activity among memecoin traders, who are drawn to Solana's lower fees and faster transaction speeds compared to Ethereum.

The spike in stablecoin issuance coincided with the launch of Donald Trump's Solana-based cryptocurrency on January 18, which revitalised interest in memecoins.

Data from CCData indicates that Solana’s stablecoin supply increased by over 73% since mid-January, largely driven by the excitement surrounding Trump's memecoin initiatives.

Despite this growth, Ethereum (CRYPTO:ETH) continues to dominate the decentralised finance (DeFi) space with a total value locked of $54.8 billion and a stablecoin market cap of $117 billion.

On Solana, Circle’s USDC (CRYPTO:USDC) emerged as the leading stablecoin, accounting for nearly 80% of the total market share at approximately $9.25 billion.

Circle has actively increased USDC issuance on Solana, minting an additional $250 million recently, which brought its total minted amount for the week to $1.25 billion.

While Tether’s USDT (CRYPTO:USDT) remains the most traded stablecoin globally with a market cap of around $139.5 billion, USDC has shown remarkable growth with a 78% increase year-over-year.

Tether is currently facing regulatory challenges in the European Union, where exchanges have begun delisting its stablecoin to comply with new regulations.

As of January 2025, the overall stablecoin market capitalisation surpassed $200 billion, reflecting growing demand for these digital assets amid ongoing market volatility.

At the time of reporting, the Solana (SOL) price was $212.95.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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