In a significant development for the Solana network, data from DefiLlama reveals that an additional $1 billion in stablecoin total value was onboarded in December. This growth is primarily attributed to the increasing adoption of USD Coin (USDC), which now constitutes nearly 80% of Solana’s stablecoin total value locked (TVL).
Accelerating Stablecoin Adoption
The influx of stablecoins on the Solana network highlights the accelerating adoption of decentralized finance (DeFi) solutions in 2024. As more users and investors turn to DeFi, the demand for stablecoins has increased exponentially. This trend is expected to continue as the industry witnesses a surge in liquidity and innovation.
Solana’s Rise to Prominence
With over $5 billion in stablecoin TVL, Solana has established itself as a prominent player in the DeFi space. The network’s ability to onboard significant amounts of capital from investors demonstrates its growing influence and adoption. As the ecosystem continues to expand, we can expect to see more innovative solutions and use cases emerge.
Stablecoin Market Capitalizations
According to CoinGecko, as of December 31st, USDT’s and USDC’s total market capitalizations across blockchain networks are approximately $137 billion and $44 billion, respectively. This growth is a testament to the increasing popularity of stablecoins, which have become an essential component of DeFi.
Trump’s Election Win Boosts Stablecoin Market
The combined market capitalizations of the top three stablecoins (USDT, USDC, and Dai) have grown by more than $25 billion since November. This surge is attributed to the market’s optimism surrounding President-elect Donald Trump’s election win in the United States.
Citi Research: Stablecoins are the On-Ramp to DeFi
In a recent report, Citi stated that ‘stablecoins are the on-ramp to decentralized finance.’ This sentiment highlights the crucial role stablecoins play in facilitating access to DeFi solutions for mainstream investors. As more users turn to DeFi, we can expect to see continued growth and innovation in the stablecoin space.
Solana Challenges Ethereum in DeFi
Solana has emerged as a serious challenger to Ethereum in the DeFi space. With its fast transaction speeds and low fees, Solana is increasingly becoming the platform of choice for developers and users alike. Since 2023, SOL has outperformed ETH by approximately 8x, according to data from TradingView.
Solana’s TVL Surges in 2024
In 2024, Solana’s TVL rose roughly 5x, from around $1.4 billion to over $8.6 billion, according to DefiLlama. This growth is a testament to the network’s increasing adoption and influence in the DeFi space.
Grayscale Research: Retail Traders Flock to Solana
According to Grayscale Research, retail traders are increasingly entering the crypto market through Solana as speculation intensifies around Solana-based memecoins and AI agent tokens. This trend highlights the growing interest in Solana’s innovative solutions and use cases.
Jupiter and Jito: Two Solana-Native DeFi Apps
In December, Grayscale added Jupiter and Jito to its list of top 20 tokens to watch in the first quarter of 2025. Jito, a Solana staking pool, clocked monthly revenues of over $100 million in November and December from priority fees and tips.
Ethereum’s Stablecoin TVL Still Dominant
While Solana’s stablecoin TVL has grown significantly, Ethereum still holds the largest share, exceeding $110 billion as of December 31st. However, this gap is expected to narrow as Solana continues to gain momentum in the DeFi space.
Conclusion
The onboarding of $1 billion in stablecoin total value in December highlights the accelerating adoption of decentralized finance solutions on the Solana network. As more users and investors turn to DeFi, we can expect to see continued growth and innovation in the stablecoin space. With its fast transaction speeds and low fees, Solana is increasingly becoming a serious challenger to Ethereum in the DeFi space.
Related Resources
- DeFi TVL Nears 2021 Highs on Liquid Restaking, Bitcoin L2s
- Stablecoin Adoption Drives DeFi Growth as ‘On-Ramp’ to Decentralized Finance
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