Layer 1 blockchain network Solana’s stablecoin supply has been growing steadily since the beginning of the year, surpassing $3 billion last week.
According to data from blockchain analytics platform Artemis, the network’s stablecoin supply is Over the past three months, it has increased 55.72% to $3.12 billion.
Notably, these numbers do not compare significantly to network balances in 2022, when more than $6 billion in assets were on the blockchain. However, during a bear market, it plummeted to $1.4 billion and then recently entered an upward trend.
Meanwhile, Solana’s stablecoin transfer volume increased 164% to $1.4 trillion, reflecting the significant activity the network has enjoyed.
USDC dominates
Solana’s stablecoin history shows that Circle’s USD Coin (USDC) dominates, accounting for 73% of the network’s assets.
For context, USDC accounted for a significant $63.69 billion in stablecoin transfer volume on April 2, surpassing USDT’s $812.41 million, according to Artemis data. EURC rounded out the top three with a trading volume of less than $100,000.
USDC’s dominance over Solana can be directly linked to Circle’s March 26 launch of the Cross-Chain Transfer Protocol (CCTP) on the network.
Why Solana Stablecoin Balances Are Rising
Stablecoins play an important role as intermediaries between traditional fiat currencies and digital assets. Increasing stablecoin supply means increased liquidity, which indicates increased capital inflows.
Market observers explained that this surge reflects the frenzy surrounding memecoins and the expansion of DeFi activity within the Solana ecosystem, while also attracting significant capital inflows into the network.
In the past year, the Solana blockchain ecosystem has expanded significantly despite its controversial relationship with FTX founder Sam Bankman-Fried. This growth has led to new users and significant partnerships with major global financial institutions, including Visa and Shopify.
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