Stablecoin Growth Fuels Solana's Impressive Rise

While many L2 platforms are going through their shares of bull and bear cycles, Solana is fast establishing itself as the go-to platform

Many layer-2 platforms are going through their shares of bull and bear cycles, but Solana is quickly establishing itself as the go-to platform, observing massive growth in its ecosystem value and user activity. Thanks to enhanced trust and utility, Solana’s stablecoin TVL has reached a major milestone, while daily active addresses continue to surpass rival networks.

Stablecoin Growth Fuels Solana’s Impressive Rise

The total value locked (TVL) of stablecoins in Solana’s ecosystem has surpassed the 5 percent mark, according to Anna Yuan, founder of Perena, a Solana native stablecoin infrastructure protocol, citing data from Artemis. This is a significant jump from nearly 3 percent in early January.

Solana still trails behind both Ethereum, which has a stablecoin TVL above $100 billion, as well as TRON, with over $50 billion, but its growth trajectory is undeniable.

For context, stablecoins constitute a relatively small portion of the overall crypto market cap, but they play a crucial role in facilitating cross-chain activity and interoperability within the broader DeFi ecosystem.

This growth is partly due to Circle’s steady issuance of USDC on Solana. Since early 2025, Solana’s stablecoin supply has surged by 130 percent overall, with a notable 112 percent increase in January alone, reaching $11.8 billion. In fact, Circle had minted $250 million USDC that day, bringing the USDC issued since January 1, 2025, to $10 billion.

User Engagement Soars with Memecoin Mania and Ecosystem Utility

Solana is not only riding a stablecoin wave—it is also witnessing staggering growth in user engagement, with 4 million daily active addresses, eclipsing networks such as TRON, which has 3 million.

This spike in activity is exemplified by a remarkable 86 million daily transactions, demonstrating Solana’s scalability and growing adoption. Notably, this volume dwarfs the transaction numbers on other prominent blockchains, such as Bitcoin and Ethereum, which typically handle around 1 million transactions per day.

Solana’s user activity has shot up in recent months with the integration of memecoins and the development of new DeFi protocols.

The involvement of major crypto exchange Binance has also been instrumental. Following Binance’s January 18 launch of the token, stablecoin holdings climbed 73.6 percent by late January.

Moreover, the number of new addresses on Solana soared past 9 million ahead of Trump’s inauguration, further underscoring the network’s rising popularity.

Favorable Regulations and Positive Price Forecasts

Looking ahead, regulatory moves such as the upcoming GENIUS Act, which is currently in the US Senate, could further enhance Solana’s stablecoin position.

This legislation aims to provide a clear regulatory framework for stablecoins, which could encourage more financial institutions to explore Solana-based stablecoins, driving additional liquidity into the ecosystem.

In fact, projections predict that the total stablecoin supply may reach $225.4 billion by 2025, nearly tripling Solana’s total contribution to $11.8 billion.

Analysts say that growing trust and utility in the ecosystem are key to attracting new DeFi projects to Solana. This creates a virtuous cycle of increasing adoption and investment in Solana’s ecosystem.

From a technical perspective, Solana’s price action is drawing investor interest. A cup-and-handle pattern has formed, signaling a potential bullish breakout.

If SOL surpasses $120 with strong volume, analysts foresee a rally to $135–$140. In January, CryptoElites noted that SOL had broken above a 2021 trend line, suggesting a move toward $678–$1,099. Another analyst, CryptoExpert101, projected SOL could hit $1,000 in 2025.

Despite the optimism, volatility remains a concern. A drop below $110 could shift sentiment bearish, though SOL, now around $130, maintains an overall positive trend.

Solana Scalability and Network Upgrades Crucial for Sustained Growth

Now that Solana is enjoying unprecedented levels of user activity and stablecoin adoption, the focus must be on maintaining a combination of network efficiency and security.

Experts caution that persistently high usage could require continued investment to upgrade networks or acquire more resources. For example, developers at Solana are proactively preparing to relieve congestion where necessary, guaranteeing users a smooth transition.

With a recent network upgrade that significantly increased transaction processing speeds, the team is clearly committed to scalability.

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