Preface

Solana, a leading layer-1 blockchain known for its rapid and economical transactions, is experiencing a trading surge. The introduction of a Donald Trump-themed memecoin has dramatically increased stablecoin liquidity on the network, achieving unprecedented levels.

Lazy bag

Solana's stablecoin supply has reached an all-time high of $10.5 billion. TRUMP memecoin launches have fueled a trading bonanza, elevating decentralized exchange volumes significantly.

Main Body

Solana (SOL) is experiencing a significant trading boom, fueled largely by the introduction of a controversial memecoin associated with Donald Trump. This phenomenon has doubled the stablecoin supply on the Solana network since January, reaching a staggering $10.5 billion, according to Artemis data. The increase has been driven primarily by Circle's USDC, which has expanded its circulation on Solana by over $4 billion this month, totaling more than $8 billion. Concurrently, Tether's USDT has also seen substantial growth, rising to $2 billion from $917 million.

This increase in stablecoin supply is crucial for the cryptocurrency economy, as stablecoins provide essential liquidity for trading activities. Solana, equipped with a vast array of in-built protocols, has emerged as a vibrant center for trading and the launching of tokens, especially within rapidly expanding crypto sectors like memecoins and crypto AI agents.

Recently, Solana's stablecoin liquidity saw a remarkable uptick, catalyzed by Trump's memecoin launch on January 17. Dubbed the "official" memecoin of the former U.S. President, the TRUMP coin's debut on Solana triggered a surge in trading volume across decentralized exchanges (DEXs), thereby boosting transaction activity and attracting liquidity inflows.

Initially, the TRUMP coin was traded exclusively on the decentralized exchange Meteora against the USDC stablecoin. This prompted traders to first acquire USDC to participate, significantly driving demand and supply of USDC on Solana. Notably, the activity on Solana-based DEXs soared, smashing records with daily trading volumes exceeding $25 billion and accounting for 74% of all DEX trading volume across blockchain networks.

The rising activity was mirrored in the price of SOL, Solana's native token, which posted a market-leading increase of 20% this week, considerably outperforming Bitcoin's 2% advance within the CoinDesk 20 Index.

While USDC and USDT continue to dominate the stablecoin landscape on Solana, emerging issuers are establishing their presence. Marked by recent events, Hong Kong's First Digital enabled its FDUSD stablecoin on Solana, and DeFi lender Sky, previously MakerDAO, introduced its USDS stablecoin late last year.

Key Insights Table