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The memecoin launch attracted hundreds of thousands of new onchain users, propelling Solana to become the third-largest blockchain network by stablecoin supply.
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The total supply of stablecoins on Solana (SOL) has jumped by more than 73% since mid-January, driven by a surge in network activity following the launch of President Donald Trump’s memecoin.
According to a Jan. 30 report by research firm CCData, Solana’s stablecoin supply stands at $11.1 billion, a 112% increase since Jan. 1.
“This increase coincided with a surge of capital inflows to the network following Donald Trump’s launch of his memecoin, $TRUMP, on Solana, which resulted in record [decentralized exchange] trading activity,” CCData said.
Solana has surpassed Binance Chain to become the third-largest blockchain network by stablecoin supply, according to CCData. It still lags behind Ethereum and Tron.
Solana’s stablecoin market cap over time. Source: CCData
Related: Coinbase Solana transactions delayed amid memecoin frenzy
Trump memecoin hype
US President Donald Trump’s advisory team launched the Official Trump (TRUMP) memecoin on Jan. 18 and the Official Melania (MELANIA) token on Jan. 19 on the Solana network, ahead of Trump’s presidential inauguration on Jan. 20.
The memecoin launches brought significant trading volume to Solana, reportedly causing congestion on the network. Moonshot, the platform Trump pointed his followers to for purchasing the memecoin, reported more than 200,000 new onchain users since the token launched.
Trump’s eponymous token briefly broke $80 billion in fully diluted value (FDV) within a day of launching. It later retraced and traded at an FDV of around $26 billion as of Jan. 30, according to data from CoinMarketCap.
Shifting stablecoin dominance
Circle’s USD Coin (USDC) stablecoin dominates on Solana, comprising nearly 78% of stablecoin supply. Meanwhile, Tether (USDT) lags significantly, with approximately 12% of market share on Solana, CCData said.
At a market capitalization of approximately $50 billion, USDC is the second most popular stablecoin after USDt, which has a market capitalization of around $140 billion as of Jan. 30, according to CoinGecko.
Circle’s USDC has been gaining against USDT since December amid questions surrounding Tether’s compliance with the Markets in Crypto-Assets Regulation (MiCA), the European Union’s regulatory framework designed to standardize and regulate the crypto market.
Magazine: Bitcoin payments are being undermined by centralized stablecoins
This article first appeared at Cointelegraph.com News
