Stablecoin supply on the layer-1 blockchain network Solana has increased steadily since the beginning of the year, crossing the $3 billion mark during the past week. According to data from the blockchain analytical platform Artemis, the stablecoin supply on the network has increased by 55.72% in the last three months to reach $3.12 billion.
Notably, this number pales significantly against the balance on the network in 2022. At that time, more than $6 billion worth of these assets were on the blockchain. However, it fell to as low as $1.4 billion during the historic bear market situation. Now though, the supply appears to be back on the rise.
Leading the stablecoin charge on the Solana network is USDC. Circle’s stablecoin accounts for 73% of such assets on the network, according to Artemis. Circle’s launch of its Cross-Chain Transfer Protocol (CCTP) on the network on March 26 is the likely cause for this recent surge. Artemis data shows that USDC accounted for $63.69 billion of stablecoin transfer volume on April 2, far overshadowing USDT’s $812.41 million
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Meanwhile, stablecoin transfer volume on Solana surged by 164% to $1.4 trillion, reflecting the significant amount of activity the network has enjoyed. An increasing stablecoin supply indicates heightened liquidity and is indicative of increased capital infusion.
Furthermore, the ongoing meme-coin rise and the expanding DeFi activity within the Solana ecosystem may also be playing a part. With this new significant influx of capital into the network, Solana as a whole may be on the rise, and those interested in stablecoins are flocking to Solana for USDC.