Solana has witnessed a significant surge in stablecoin adoption in December, with an additional $1 billion in total value locked (TVL) being onboarded onto the network. This influx of capital is primarily comprised of USD Coin (USDC), which now accounts for nearly $4 billion of Solana’s total TVL.
Accelerating Stablecoin Adoption
The data from DefiLlama highlights the accelerating pace of stablecoin adoption, particularly on the Solana network. As the decentralized finance (DeFi) ecosystem continues to grow, stablecoins have become an essential component, providing a secure and reliable means of value transfer.
- USD Coin (USDC): The largest stablecoin in circulation, with a market capitalization of approximately $44 billion.
- Tether’s USDt: Solana’s second most popular stablecoin, with a TVL of around $1 billion.
Stablecoin Market Capitalizations Reach New Heights
The combined market capitalizations of the top three stablecoins – USDT, USDC, and Dai (DAI) – have collectively grown by more than $25 billion since November. This significant increase is attributed to various factors, including the election of United States President-elect Donald Trump.
Bullish for DeFi
The rising market capitalizations of stablecoins are considered bullish for the DeFi ecosystem as a whole. As Citi notes, ‘stablecoins are the on-ramp to decentralized finance.’ This trend is expected to continue in 2024, with Solana emerging as a serious challenger to Ethereum in DeFi and other applications requiring smart contracts.
Solana’s Rise to Prominence
Since 2023, Solana has outperformed Ethereum by approximately 8x. In 2024, Solana’s TVL rose roughly 5x, from around $1.4 billion to upward of $8.6 billion. This surge in adoption can be attributed to various factors, including speculation surrounding Solana-based memecoins and AI agent tokens.
Retail Traders Flock to Solana
Retail traders have increasingly entered the crypto market through Solana as speculation intensifies around Solana-based memecoins and AI agent tokens. Grayscale Research notes that retail traders are drawn to Solana due to its potential for growth.
Solana’s Stablecoin TVL Exceeds $5 Billion
As of December, Solana hosts approximately $5 billion in stablecoin total value locked (TVL), with nearly $4 billion of that comprising USDC. Tether’s USDt is Solana’s second most popular stablecoin, at roughly $1 billion in TVL.
Comparison to Ethereum
While Solana’s stablecoin TVL has surpassed $5 billion, Ethereum’s stablecoin TVL still greatly surpasses Solana’s, exceeding $110 billion as of December. However, Solana’s rise to prominence in DeFi and other applications is undeniable.
Stablecoin Adoption Accelerates on Solana
- USD Coin (USDC): The largest stablecoin in circulation, with a market capitalization of approximately $44 billion.
- Tether’s USDt: Solana’s second most popular stablecoin, with a TVL of around $1 billion.
Ethereum Challenger Emerges
Solana has emerged as a serious challenger to Ethereum in DeFi and other applications requiring smart contracts. Since 2023, SOL (the native cryptocurrency of the Solana network) has outperformed Ether by approximately 8x. In 2024, Solana’s TVL rose roughly 5x, from around $1.4 billion to upward of $8.6 billion.
Retail Traders Flock to Solana
Retail traders have increasingly entered the crypto market through Solana as speculation intensifies around Solana-based memecoins and AI agent tokens. Grayscale Research notes that retail traders are drawn to Solana due to its potential for growth.
Comparison to Ethereum
While Solana’s stablecoin TVL has surpassed $5 billion, Ethereum’s stablecoin TVL still greatly surpasses Solana’s, exceeding $110 billion as of December. However, Solana’s rise to prominence in DeFi and other applications is undeniable.
Key Statistics
| Stablecoin | Market Capitalization (approximate) |
| — | — |
| USDT | $137 billion |
| USDC | $44 billion |
Sources
- DefiLlama: A leading platform for tracking decentralized finance (DeFi) metrics.
- CoinGecko: A prominent cryptocurrency data aggregator.
- Citi Research Report: Published on December 26, highlighting the growth of stablecoin market capitalizations.
Conclusion
Solana’s stablecoin adoption has accelerated significantly in December, with an additional $1 billion in TVL being onboarded onto the network. This trend is expected to continue in 2024, with Solana emerging as a serious challenger to Ethereum in DeFi and other applications requiring smart contracts.
