Solana stablecoin supply hits $10B ATH, TVL up 800% — Can SOL price reach $1K?

Solana (SOL) had a blistering seven days, buoyed by the TRUMP memecoin launch, US President Donald Trump’s inauguration, and ETF hype to reach a new all-time high of around $294, leading to a record stablecoin supply, and surge in total value locked.

Solana stablecoin supply hits all-time highs

Solana’s stablecoin supply has skyrocketed over the last seven days, surging past $10B for the first time ever, hitting a new all-time high.

One major factor is likely Trump family memecoins. The Official Trump (TRUMP) and Official Melania Meme (MELANIA) have attracted billions in capital inflows, onboarding hundreds of thousands of new users to the Solana ecosystem in recent days.

As a result, the daily number of new Solana addresses reached almost 9 million, the highest ever, in the run-up to President Donald Trump’s inauguration on Jan. 20. 

The chart below shows a 77.5% uptick in Solana’s stablecoin supply over the last week, hitting a new all-time high market cap of $10.83 on Jan. 24.

Related: Solana price rallies to $272, but what will it take for SOL to hit new highs?

Meanwhile, Circle’s USDC (USDC) remains the stablecoin of choice for users within the Solana ecosystem, with a 77.23% market share.

Stablecoins are integral to Solana’s decentralized finance (DeFi) ecosystem, driving liquidity and increasing $SOL demand.

Solana TVL jumps 800% in 12 months

The memecoin buzz around the Solana ecosystem has also led to a surge in the total value locked (TVL).

Solana’s TVL has risen from $1.3 billion on Jan. 24, 2024, to $11.98 billion today, an increase of over 800% year-to-date. It also jumped by 24.7% over the past week alone.

Raydium, the leading decentralized exchange (DEX) on Solana, plays a significant role in this growth, contributing $3.89 billion to the total TVL, which has increased by 24% over the last seven days and 36% in the past month.

Will SOL price go even higher?

Historical trends show a correlation between stablecoin supply growth and TVL with SOL price. 

For example, a 93% surge in stablecoin supply in September 2021 preceded a 45.76% rise in SOL over two months from $177 on Sept. 11, 2021, to an all-time high of $258 on Nov. 6, 2021.

If history repeats, SOL price could experience a similar 45% increase, reaching $362 by March 2025.

“If $SOL were to replicate this price action following the nuclear growth of its onchain stablecoin supply, a similar 45% price increase could $SOL as high as $362 by the end of March 2025,” said SolanaFloor in response to recent growth in Solana’s ecosystem.

Similarly, an over 2,000% increase in TVL between June 25, 2021, and Nov. 8, 2021, accompanied an 800% rally in price over the same period. This implies that if Solana’s TVL trend continues, the price should rise due to increasing demand for SOL tokens.

“Solana prepares for a massive move!” popular crypto analyst CryptoElites said in a Jan. 24 post on X. 

The bullish analyst shared the chart below showing that SOL’s price action since November 2024 pushed the price above the 2021 descending trendline. This technical setup projects Solana’s short-term target at $450. The analysis projects that SOL could eventually be in the $678-$1,099 range.

“The technical outlook is fully positive — big moves ahead!”

Similar sentiments were shared by CryptoExpert101, who believes that SOL’s price might “hit $1,000” and above in 2025.

“Solana is just too easy to use for the average retail investor.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.