Solana, a leading network for stablecoins like USDT and USDC, reached a record all-time high of more than $12 billion in total supply. The growth shows increasing confidence in Solana’s infrastructure while indicating the rising demand for stable and fast transactions across DeFi, payments, and tokenized assets.
An important part of this development is USDC, which has over 76% dominance on the network. With $9.89 billion in market cap, USDC has been consistently in demand. USDC’s rise on Solana is due to its strong reputation for transparency. It has close ties to institutional-grade platforms, offering superior transaction throughput and low fees.
The pairing of USDC and Solana has proven to be a powerful combination. First, it provides a stable, dollar-pegged asset with the speed of one of the fastest layer 1 blockchains. This is valuable for DeFi users and payment providers due to its scalability. Not only this, but it does not compromise on security or decentralization.
Tether Maintains Second Spot
Behind USDC is USDT. According to data from DeFiLlama, USDT has a market cap of $2.318 billion on Solana. Although it remains the second-largest on Solana, USDT’s market share remains flat. It indicates a more cautious approach by users who prefer USDC’s regulatory transparency.
Still, Tether plays a role in Solana’s stablecoin ecosystem. It offers liquidity and interoperability for many exchanges, trading pairs, and payment platforms. Additionally, several newer stablecoins are gaining prominence on the Solana blockchain. The market cap of USDY increased to $173.75 million, representing a 57% gain in recent weeks. Its growth shows increased interest in yield-bearing stablecoins.
PayPal USD reached $150.61 million, increasing by over 30% over the past seven days. Moreover, Sky Dollar (USDS) and First Digital USD (FDUSD) hold over $100 million. For a network competing with Bitcoin and Ethereum, Solana’s stablecoin offerings are increasing at a fast rate.
Why Stablecoin Dominance Matters
Solana’s ability to attract and maintain the growing stablecoin supply is more than a numbers game. It is a sign of infrastructure strength. Due to its high transaction speed and expanding ecosystem of DeFi applications, Solana is becoming one of the main choices for stablecoin applications.
This is important as the crypto industry moves towards use cases like tokenized real-world assets and cross-border commerce. All these require stablecoins for global payments. Hence, given Solana’s increasing stablecoin supply, it may become the number one in the future.
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