Solana Stablecoin Supply Increases Amid Market Conditions
Donald Trump's launch of a Solana memecoin linked to USDC led to a significant increase in the Solana network's stablecoin supply, marking 306 days of growth. Currently, Solana has $12.1 billion in stablecoins, close to its all-time high of $12.4 billion from February 11.
Key points include:
- Analyst Carlos Gonzalez Campo noted the stablecoin supply's unexpected stickiness, attributed to bear market conditions.
- USDC borrowings on the Solana money market Kamino are at record highs, indicating investor interest in long SOL positions after recent price declines.
- A new stablecoin, USDG, launched by Paxos, has over $100 million in supply on Solana.
- The stablecoin infrastructure platform M^0 recently launched, planning to introduce new stablecoins from Kast.
- Current stablecoin distribution is heavily weighted toward USDC (76%), raising questions about diversification strategies for Solana.