According to DefiLlama, Solana attracted an additional $1 billion worth of stablecoins in December, mostly in USD Coin.
The influx of funds indicates that stablecoin adoption is accelerating and that the Solana network is set to grow in popularity in 2024, particularly in the decentralized finance (DeFi) space.
According to the data, there are currently about $5 billion in stablecoins on Solana, with nearly $4 billion in USDC.
Tether’s USDT is the second most popular stablecoin on Solana, with a TVL of about $1 billion
Implementation of stablecoins
According to CoinGecko, the total market cap of USDT and USDC on blockchain networks is about $137 billion and $44 billion, respectively, as of December 31.
The stablecoin market cap has skyrocketed following the victory of US President-elect Donald Trump in the November election. Many believe that Trump’s victory in the US presidential race will benefit the industry.
According to a December 26 report by Citi research, the combined market cap of the three largest stablecoins — USDT, USDC, and Dai — grew by more than $25 billion in November.
This is particularly bullish for DeFi, as “stablecoins are the first step toward decentralized finance,” Citi said.
Ethereum Competitor
Solana has become a serious competitor to Ethereum in DeFi and other applications that require smart contracts.
SOL has outperformed Ethereum by about 8x since 2023, according to TradingView.
Solana’s TVL has grown by about 5x in 2024, from $1.4 billion to over $8.6 billion, according to DefiLlama.
«Retail traders are now increasingly entering the crypto market through Solana as speculation intensifies around Solana-based memecoins and AI agent tokens,” Grayscale Research said in a Dec. 30 note.
In December, Grayscale added Jupiter and Jito, two native Solana applications for DeFi, to its list of the top 20 tokens to watch in Q1 2025.
Solana’s staking pool, Jito, generated over $100 million in monthly revenue in November and December from priority fees and tips, according to crypto researcher Kairos Research.
However, the Ethereum stablecoin’s TVL still significantly outpaces Solana’s, exceeding $110 billion as of December 31, according to DefiLlama.