Solana stablecoin supply rises to $10B ATH, TVL up 800% – can SOL price reach $1K?
Solana (SOL) hit a seven-day high around $294 on the TRUMP memecoin launch, the inauguration of US President Donald Trump and the ETF boost, a record stable coin supply and a surge in overall value. It is locked.
Solana stablecoin supply has reached an all-time high
Solana's stablecoin supply has soared over the past seven days, rising above $10B for the first time and reaching a new all-time high.
One main reason is probably the Trump family's memecoins. The official TRUMP and official Melania meme has drawn hundreds of thousands of new users to the Solana ecosystem in recent days, attracting billions in capital inflows.
As a result, the daily number of new Solana addresses is nearly 9 million, the highest ever since President Donald Trump's 2018 election.
Source: Matthew Siegel
The chart below shows a 77.5% increase in Solana's stablecoin supply over the past week, hitting a new high of $10.83 on January 24th.
Related: Solana price hits $272, but what does SOL need to reach new highs?
Meanwhile, Circle's USDC (USDC) remains a stable coin for users in the Solana ecosystem with a market share of 77.23%.
Solana's stablecoin supply has surpassed $10 billion, a new all-time high. Source: Defillama
Stablecoins are critical to Solana's decentralized finance (DeFi) ecosystem, driving liquidity and increasing demand for $SOL.
Solana TVL increased 800% in 12 months.
The memecoin buzz around the Solana ecosystem has led to an increase in Total Value Locked (TVL).
Solana's TVL rose to $11.98 billion from $1.3 billion on January 24, 2024. It jumped 24.7 percent last week alone.
Total price locked on Solana. Source: Defillama
The main decentralized exchange (DEX) on Solana, Rhidium, plays an important role in this growth, contributing to the total TVL $ 3.89 billion, which has increased by 24% in the last seven days and by 36% in the last month.
Total value locked on Solana's DeFi protocols. Source: Defillama
Can the price of SOL go higher?
Historical trends show the relationship between Stablecoin supply growth and TVL's SOL price.
For example, the September 2021 supply of 93% Stable Coin on SOL has grown by 45.76% from $177 on September 11, 2021 two months ago, to an all-time high of $258 on November 6, 2021.
If history repeats itself, the price of SOL could experience a similar 45% increase, reaching $362 by March 2025.
“If $SOL repeats this price action following the nuclear growth of the onchain stablecoin supply, a similar 45% price increase could bring $SOL up to $362 by the end of March 2025,” SolanaFloor said of Solana's recent growth. The environment.
Similarly, TVL's more than 2,000% increase between June 25, 2021 and November 8, 2021, resulted in an 800% price rally over the same period. This indicates that if Solana's TVL trend continues, the price of SOL tokens should rise due to increasing demand.
“Solana is ready for a big move!” Noted crypto analyst CryptoElites said in a January 24 post on X.
The bullish analyst shared the chart below which shows that SOL's price action since November 2024 pushed the price above the 2021 downtrend line. This technical setup extends Solana's short-term target at $450. Analysis projects that SOL will ultimately be in the $678-$1,099 range.
“The technical outlook is completely positive – big steps ahead!”
SOL/USD Weekly Chart. Source: CryptoElites
Similar sentiments are shared by CryptoExpert101, who believes that the price of SOL “could reach $1,000” by 2025.
“Solana is very easy to use for the average retail investor.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
