In a significant development for the Solana network, data from DefiLlama reveals that an additional $1 billion in stablecoin total value (TVL) was onboarded in December. This influx of funds primarily consisted of USD Coin (USDC), highlighting accelerating stablecoin adoption and the rise of Solana to prominence in 2024.
Accelerating Stablecoin Adoption
The increasing popularity of stablecoins can be attributed to their stability, which makes them an attractive option for traders and investors alike. As the global economy continues to navigate uncertain times, the demand for stable assets has grown significantly. In response, Solana’s network has seen a substantial increase in TVL, with approximately $5 billion now held on the platform.
Solana’s Rise to Prominence
Solana’s emergence as a serious challenger to Ethereum in decentralized finance (DeFi) and other applications requiring smart contracts is a significant development. Since 2023, SOL has outperformed Ether by approximately 8x, according to data from TradingView. In 2024, Solana’s TVL rose roughly 5x, from around $1.4 billion to upward of $8.6 billion.
USDT and USDC Market Capitalizations
As of Dec. 31, the total market capitalizations of USDT and USDC across blockchain networks are around $137 billion and $44 billion, respectively, according to CoinGecko. This significant growth can be attributed to various factors, including the election of United States President-elect Donald Trump in November.
Trump’s Win: A Catalyst for Stablecoin Adoption
Many experts believe that Trump’s win will benefit the industry, as it is expected to lead to increased economic uncertainty and volatility. As a result, the demand for stable assets has grown significantly, driving the adoption of stablecoins. Since November, the combined market capitalizations of the top three stablecoins – USDT, USDC, and Dai (DAI) – have collectively grown by more than $25 billion.
Bullish for DeFi
The growing popularity of stablecoins is bullish for decentralized finance (DeFi), as "stablecoins are the on-ramp to decentralized finance," according to a Dec. 26 Citi research report. This trend highlights the increasing demand for decentralized and secure financial solutions, which Solana’s network is well-positioned to meet.
Solana vs. Ethereum
Since its emergence in 2023, Solana has been gaining ground on Ethereum in DeFi and other applications requiring smart contracts. With SOL outperforming ETH by approximately 8x since 2023, Solana’s TVL rose roughly 5x in 2024, from around $1.4 billion to upward of $8.6 billion.
Retail Traders Flock to Solana
Retail traders increasingly enter the crypto market through Solana, as speculation intensifies around Solana-based memecoins and AI agent tokens. According to Grayscale Research, retail traders are attracted to Solana’s innovative and user-friendly platform.
Solana-Native DeFi Apps
In December, Grayscale added Jupiter (JUP) and Jito (JTO) – two Solana-native DeFi apps – to its list of the top 20 tokens to watch in the first quarter of 2025. Jito, a Solana staking pool, clocked monthly revenues of more than $100 million in November and December from priority fees and tips.
Ethereum Still Leads
However, Ethereum’s stablecoin TVL still greatly surpasses Solana’s, exceeding $110 billion as of Dec. 31, according to DefiLlama. While Solana is gaining ground on Ethereum, the latter still dominates in terms of stablecoin adoption and market capitalization.
Conclusion
Solana’s onboarded an additional $1 billion in stablecoin TVL in December, primarily in USDC, highlighting accelerating stablecoin adoption and the rise of Solana to prominence in 2024. As the global economy continues to navigate uncertain times, the demand for stable assets is expected to grow further, driving the adoption of stablecoins on Solana’s network.
Stablecoin Market Capitalizations
| Stablecoin | Market Capitalization |
| — | — |
| USDT | $137 billion |
| USDC | $44 billion |
Solana TVL
- December 2023: $1.4 billion
- 2024: up to $8.6 billion (5x increase)
Solana’s Rise to Prominence
Solana has emerged as a serious challenger to Ethereum in DeFi and other applications requiring smart contracts.
Stablecoin Adoption
Stablecoin adoption is increasing, driven by the growing demand for stable assets in uncertain economic times.
Factors Contributing to Growth
- Uncertainty surrounding Trump’s win: Many experts believe that Trump’s win will benefit the industry.
- Increased demand for stable assets: As the global economy continues to navigate uncertain times, the demand for stable assets is expected to grow further.
- Growing popularity of decentralized finance (DeFi): Stablecoins are seen as an essential component of DeFi, providing a secure and reliable store of value.
Solana vs. Ethereum
Solana has been gaining ground on Ethereum in DeFi and other applications requiring smart contracts.
Comparison of TVL
| Platform | December 2023 | 2024 |
| — | — | — |
| Solana | $1.4 billion | up to $8.6 billion (5x increase) |
| Ethereum | – | $110 billion |
Conclusion
Solana’s onboarded an additional $1 billion in stablecoin TVL in December, primarily in USDC, highlighting accelerating stablecoin adoption and the rise of Solana to prominence in 2024.
Sources:
- DefiLlama
- CoinGecko
- Citi Research Report
- Grayscale Research
