Stablecoin TVL on Solana Soars Over 5% as Daily Active Addresses Soar

Tags: on-chain, solana, stablecoin, tvl

Key Takeaways:

• Stablecoin TVL on Solana exceeds 5%, signaling a healthy ecosystem—outperforming much of the market.
• Solana saw another record high at 4 million daily active addresses, indicating stronger user engagement.
• Solana’s increasing stablecoin supply could receive a boost from anticipated regulatory change.

While many L2 platforms are going through their shares of bull and bear cycles, Solana is fast 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 TVL of stablecoins in Solana’s ecosystem has exceeded 5%, 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, with a stablecoin TVL above $100 billion, as well as TRON, which has over $50 billion, but its growth trajectory is undeniable.

Solana is the third largest blockchain network measured by stablecoins, after Ethereum and Tron, according to The Block. Source: CryptoRank

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% overall, with a notable 112% 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. Notably, this spike in activity is exemplified by a remarkable 86 million daily transactions, demonstrating Solana’s scalability and growing adoption.

Solana’s stablecoin supply soared by 112% in January 2025 alone, reaching an all-time high of $11.1 billion, according to a CCData report. The first major catalyst was the emergence of the memecoin TRUMP, leading to a large influx of capital into the Solana ecosystem. Since Binance launched the token on January 18, stablecoin holdings increased by 73.6% in late January. The surge in new addresses on Solana, which saw the total number exceed 9 million ahead of Trump’s inauguration, also highlights the network’s growing popularity. For example, trading the US president’s memecoin on DEXs moved the total supply of stablecoins on Solana over the previous record-setter mark of 2022.

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. 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 analysis perspective, Solana’s price movements are generating excitement among investors. A classic cup-and-handle pattern has emerged in SOL price charts, signaling a potential bullish breakout. If SOL breaks past the $120 resistance with higher trading volume, analysts predict a rise to the $135–$140 range. In January, CryptoElites predicted that SOL was primed for a breakout, noting that price action since November 2024 had positioned SOL above a downward trend line from 2021, potentially paving the way for a move into the $678–$1,099 range. Another analyst, CryptoExpert101, also expressed a similar sentiment and said that Solana could reasonably reach 1,000 dollars, or more, in 2025.

Volatility, of course, is still a factor. Conversely, a breakdown below $110 would invalidate the bullish sentiment and could trigger a decline toward the $100 level, making it clear that trading volumes need to be monitored. Currently trading at about $130, SOL price has dropped nearly 10% over the past week; however, the overall trend remains favorable.

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.

The total market cap of Solana stablecoins has tripled. Source: DefiLlama

In fact, only a few months ago, Senator Elizabeth Warren vehemently opposed the GENIUS Act, describing it as a “clear threat to national security.” She cited reports that World Liberty Financial, a Donald Trump-backed project, was negotiating a deal involving Binance. This also highlights the complexities of the regulatory environment and the potential impact of geopolitics on the stablecoin market.

These challenges notwithstanding, the innovation continued to attract developers and users who were building on the Solana platform, establishing its place in the blockchain ecosystem. Their adaptability and innovation will be key factors in navigating these industry challenges and allowing the network to stay afloat in an ever-evolving regulatory environment.