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 surged 112% in January 2025, hitting a record $11.1 billion, according to a CCData report. Following Binance’s January 18 launch of the token, stablecoin holdings climbed 73.6% by late January. Meanwhile, 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. Regulatory clarity 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.
The total market cap of Solana stablecoins has tripled since November. 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. Regulatory uncertainty remains a challenge, but clearer guidelines could unlock new opportunities for Solana-based financial products.
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