Solana has had seven explosive days, driven by the launch of the TRUMP memecoin, the inauguration of US President Donald Trump, and the expectation of a Solana ETF to reach a new all-time high of around $294, leading to a record stablecoin supply and a massive increase in total value locked.
Solana stablecoin supply reaches all-time high
Solana's stablecoin supply has surged over the past seven days, crossing the $10 billion mark for the first time and reaching a new all-time high.
A key factor could be the Trump family's memecoin. The Official Trump (TRUMP) and Official Melania (MELANIA) memecoins have attracted billions of dollars in investment, bringing hundreds of thousands of new users to the Solana ecosystem in recent days.
As a result, the number of new Solana addresses per day has reached nearly 9 million, the highest level ever, ahead of President Donald Trump's inauguration on January 20.
The chart below shows that Solana's stablecoin supply has increased by 77.5% in the past week, reaching an all-time high market capitalization of $10.83 billion on January 24.
Meanwhile, Circle's USDC remains the stablecoin of choice for users in the Solana ecosystem, accounting for 77.23% of the market share.
Stablecoins are an essential part of Solana's decentralized finance (DeFi) ecosystem, driving liquidity and increasing demand for SOL.
Solana's TVL increases 800% in 12 months
The spread of memecoins around the Solana ecosystem has also led to an increase in total value locked (TVL).
Solana's TVL has grown from $1.3 billion on January 24, 2024 to $11.98 billion today, an increase of over 800% to date. Even in the past week alone, this figure has increased by 24.7%.
Raydium, Solana's leading decentralized exchange (DEX), has played a key role in this growth, contributing $3.89 billion to the total TVL, up 24% in the past seven days and 36% in the past month.
Will SOL price rise even higher?
Historical trends show a correlation between growth in stablecoin supply and TVL with the SOL price.
For example, a 93% increase in stablecoin supply in September 2021 led to a 45.76% increase in SOL over two months, from $177 on September 11, 2021 to an all-time high of $258 on November 6, 2021.
If history repeats, the SOL price could see a similar 45% increase, reaching $362 by March 2025.
SolanaFloor stated in response to the recent growth in the Solana ecosystem: "If SOL replicates this price action following the strong growth in on-chain stablecoin supply, a similar 45% increase could push SOL up to $362 by the end of March 2025".
Similarly, a over 2,000% increase in TVL from June 25, 2021 to November 8, 2021, accompanied by an 800% price increase in the same period. This suggests that if Solana's TVL trend continues, the price will rise due to increasing demand for the SOL token.
"Solana is gearing up for a big move!", prominent crypto analyst CryptoElites stated in a post on X on January 24.
The analyst shared the chart below showing SOL's price action since November 2024 has pushed the price above the 2021 downtrend. This technical setup predicts a short-term target for Solana at $450. The analysis forecasts that SOL could ultimately range between $678-$1,099.
The technical outlook is completely positive — big moves ahead!
CryptoExpert101 also shares the view that SOL's price could "reach $1,000" or more by 2025.
Solana is just too easy for the average retail investor.
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