Solana

Solana’s Stablecoin Supply Surges 112% to $11.1B Amid Trump Memecoin Frenzy

The supply of stablecoins on the Solana blockchain surged by 112% in January, reaching an all-time high of $11.1 billion, according to a research report by CCData, a subsidiary of CoinDesk. This dramatic rise coincided with the launch of Donald Trump’s memecoin, $TRUMP, which fueled substantial inflows into the network.

Since $TRUMP’s debut on January 18, stablecoin supply on Solana has skyrocketed by 73.6%, significantly surpassing its previous peak set in 2022. The memecoin’s trading activity has also driven record transactions on decentralized exchanges (DEXs), cementing Solana as the third-largest blockchain for stablecoin supply, trailing only Ethereum and Tron.

Beyond Solana, the broader stablecoin market has witnessed remarkable expansion, with total market capitalization surpassing $200 billion. Since Trump’s U.S. election victory in November, the sector has grown by $37 billion. However, this growth has also come with a shift in dominance among stablecoin issuers. Tether (USDT), the largest stablecoin with a $140 billion market cap, saw its market share decline from 67.5% to 64.9% in January—the lowest since May 2023, per CCData’s report.

One notable beneficiary of this evolving landscape is Ripple’s USD, which climbed to become the fourth-largest stablecoin by trading volume on centralized exchanges last month. Ripple has been gradually strengthening its market position despite an ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The so-called “Trump effect” has further buoyed Ripple’s native token, XRP, which surged by 33% in January, surpassing $3.10. Ripple CEO Brad Garlinghouse has attributed the rally to renewed confidence, leading to increased U.S.-based partnerships and hiring initiatives.

Also Read: Solana (SOL) Price Breakout Looms, Will It Surge Past $420 Amid Bullish Momentum?

As the crypto market responds to political and economic shifts, Solana’s growing stablecoin dominance underscores its increasing role in the broader ecosystem. Whether this momentum will continue depends on sustained investor interest and the long-term viability of the memecoin craze driving these inflows.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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