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The stablecoin supply within the layer-1 blockchain network Solana has experienced a steady rise since the start of the year, surpassing the $3 billion milestone in recent days.
Data sourced from the blockchain analytics platform Artemis reveals a 55.72% increase in stablecoin supply over the last three months, now totaling $3.12 billion on the network.
While this figure is notably lower than the balance recorded in 2022, when over $6 billion worth of assets were present on the blockchain, it marks a significant recovery from the low point of $1.4 billion during the bear market. The recent upward trend signals a resurgence in activity.
Moreover, stablecoin transfer volume on Solana has surged by an impressive 164%, reaching $1.4 trillion, underscoring the network’s robust activity levels.
USDC Dominance
A breakdown of stablecoins on Solana highlights the dominance of Circle’s USD Coin (USDC), which accounts for 73% of such assets on the network.
Recent data from Artemis shows USDC’s substantial share of stablecoin transfer volume, amounting to $63.69 billion on April 2, overshadowing USDT’s $812.41 million. EURC ranks third with a volume of less than $100,000.
The rise of USDC’s dominance on Solana correlates with Circle’s introduction of its Cross-Chain Transfer Protocol (CCTP) on the network on March 26.
Reasons Behind Solana’s Stablecoin Surge
Stablecoins serve as a vital bridge between traditional fiat currencies and digital assets. The increasing stablecoin supply indicates heightened liquidity and suggests a rise in capital inflow.
Market analysts attribute this surge to the influx of capital into the network, coinciding with the hype surrounding meme coins and the expanding DeFi activity within the Solana ecosystem.
Despite past controversies involving Sam Bankman-Fried, the founder of FTX, the Solana blockchain ecosystem has witnessed significant growth over the past year. This growth has attracted a wave of new users and forged substantial partnerships with major global financial entities like Visa and Shopify.
Featured Image: Freepik
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