Solana added $1 billion to the stablecoin in December.
Solana added an additional $1 billion in stablecoin total value in December, primarily in USD Coin (USDC), according to data from Defillama.
The flows will accelerate the adoption of stablecoins and the Solana network will become popular in 2024, especially for decentralized finance (DeFi).
Solana now hosts nearly $5 billion in stablecoin total value locked (TVL), of which nearly $4 billion includes USDC, according to the data.
Tether USDT is Solana's second most popular stablecoin with around $1 billion in TVL.
Source: Dan Smith
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Stablecoin adoption
In the year As of December 31, the total market capitalization of USDT and USDC across blockchain networks is around $137 billion and $44 billion, respectively, according to CoinGecko.
Stablecoin market capitalization has increased significantly since US President-elect Donald Trump won in November. Many believe Trump's victory in the US presidential race will be good for the industry, according to a Cointelegraph survey.
Since November, the market capitalization of USDT, USDC and Dai (DAI) – USDT, USDC and Dai (DAI) – has grown to more than $25 billion, according to Citi's Dec. 26 research report.
“This is especially big for DeFi as stablecoins take decentralized finance to the next level,” Citi said.
Source: Ct
Ethereum challenger
Solana has emerged as a serious challenger to Ethereum in DeFi and other applications that require smart contracts.
As of 2023, SOL (SOL) has outperformed Ether (ETH) by nearly 8x, according to data from TradingView.
In the year By 2024, Solana's TVL will increase by nearly 5x, from around $1.4 billion to $8.6 billion, according to Defilama.
“Retailers are increasingly entering the crypto market through Solana. [as] Speculation around Solana-based memecoins and AI agent tokens will intensify,” Grayscale Research said in a December 30 note.
In December, Grayscale added Jupiter (Jupiter) and Jeto (Jeto) — two Solana-native DeFi apps — to its top 20 tokens to watch in the first quarter of 2025.
Gito, Solana's staking pool, raked in more than $100 million in monthly revenue from premiums and tips in November and December, according to crypto researcher Kairos Research.
However, Ethereum's stablecoin TVL still far outpaces Solana, surpassing $110 billion as of Dec. 31, according to Defillama.
Magazine: Bitcoin payments are being undermined by a centrally stable coin.
