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Solana Stablecoins Skyrocket Amid Trump Memecoin Collapse

Coin WorldMonday, Feb 3, 2025 12:44 pm ET

1min read

Solana Stablecoins Surge Amid Trump Memecoin Crash

Despite the recent crash of Trump's Solana-based memecoin, which lost 75% of its value amid U.S. tariffs and market turmoil, stablecoins on the Solana blockchain have seen explosive growth. According to DefiLlama, the stablecoin market cap on Solana (SOL-USD) more than doubled in January, jumping from $5.1 billion to $11.4 billion. Speculative memecoin trading, including Trump's now-struggling token and the MELANIA token, drove much of this activity. Solana's appeal lies in its low fees and fast transactions, attracting traders moving away from Ethereum.

USDC Continues to Dominate Solana's Market

Circle's USDC (USDC-USD) remains Solana's top stablecoin, representing nearly 80% of its market cap. In early February, Circle minted an additional $250 million in USDC, pushing its weekly issuance to $1.25 billion. Globally, USDC's market cap has soared to $53 billion, showing 78% growth over the past year, according to CoinMarketCap. Analysts attribute the rise to investors converting volatile crypto assets into stablecoins for protection.

Global Stablecoin Market Reaches New Heights

The worldwide stablecoin market hit a record $211 billion, Alphractal reported. Some experts believe this trend may signal increased caution among investors, potentially indicating a market peak. However, others suggest rising stablecoin use could attract new capital and extend bullish momentum. For now, Solana remains a magnet for memecoin traders seeking fast, affordable transactions.

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