Surge in Stablecoin Supply on Solana Following $TRUMP Launch
The supply of stablecoins on the Solana blockchain experienced a remarkable increase of 112% in January, reaching an unprecedented high of $11.1 billion. This significant surge was reported by CCData, a research arm of CoinDesk, in a comprehensive report released on Friday.
This spike in stablecoin supply coincided with the launch of Donald Trump’s memecoin, $TRUMP, which generated a notable influx of capital into the Solana network. According to the report, stablecoin supply has risen by 73.6% since the launch of $TRUMP on January 18.
Trading activity surrounding $TRUMP not only fueled this increase but also led to record levels of engagement on decentralized exchanges (DEXs). As a result, the stablecoin supply on Solana surpassed its previous peak set in 2022, positioning it as the third-largest network in terms of stablecoin supply, following Ethereum and Tron.
The report further highlighted that the total market capitalization of all stablecoins has now exceeded $200 billion, having grown by $37 billion since Trump’s victory in the U.S. election last November. This burgeoning supply has been accompanied by a decline in the dominance of Tether’s USDT, the leading stablecoin with a market cap of approximately $140 billion. CCData noted that USDT’s share of the market fell from 67.5% to 64.9% in January, marking its lowest level since May 2023.
One notable beneficiary of this evolving landscape appears to be Ripple’s USD, which has ascended to become the fourth-largest stablecoin by trading volume on centralized exchanges during January. This development comes in the wake of Ripple’s prolonged legal struggles with the U.S. Securities and Exchange Commission (SEC). The so-called “Trump effect” has also propelled the native token XRP, leading to a remarkable 33% increase in its value, with trading prices surpassing $3.10 this month. Ripple’s CEO, Brad Garlinghouse, has remarked on an uptick in U.S.-based business deals and recruitment efforts as well.
