Solana (SOL) has had a blistering seven days, fueled by record stablecoin supply and a surge in total value, reaching an all-time high of around $294 thanks to the launch of the TRUMP memecoin, Donald Trump’s inauguration as US President, and ETF hype. Yes. It’s locked.
Solana stablecoin supply has reached an all-time high.
Solana’s stablecoin supply has surged over the past seven days, surpassing $10 billion for the first time and hitting an all-time high.
One major factor is likely the Trump family’s memecoin. The OFFICIAL TRUMP and OFFICIAL MELANIA memes have brought hundreds of thousands of new users to the Solana ecosystem in recent days, driving billions of dollars in capital inflows.
As a result, Solana recorded an all-time high of nearly 9 million new addresses per day ahead of President Donald Trump’s inauguration on January 20.
source: Matthew Siegel
The chart below shows Solana’s stablecoin supply increased by 77.5% in the past week, reaching an all-time high market cap of $10.83 on January 24th.
relevant: Solana price has risen to $272, so what will it take for SOL to hit new highs?
Meanwhile, Circle’s USDC (USDC) remains the stablecoin of choice for users within the Solana ecosystem, accounting for 77.23% market share.
Solana stablecoin supply has surpassed $10 billion, a new all-time high. Source: DefiLlama
Stablecoins are an integral part of Solana’s decentralized finance (DeFi) ecosystem, driving liquidity and increasing demand for $SOL.
Solana TVL rises 800% in 12 months
As memecoins floated around the Solana ecosystem, the total value locked (TVL) also surged.
Solana’s TVL has increased from $1.3 billion on January 24, 2024 to $11.98 billion today, an increase of over 800% year-over-year. It jumped 24.7% last week alone.
Total value locked in Solana. source: Dipilama
Raydium, Solana’s leading decentralized exchange (DEX), is playing a key role in this growth, contributing $3.89 billion to total TVL. This has increased by 24% over the past seven days and by 36% over the past month.
Total value locked in Solana’s DeFi protocols. Source: DefiLlama
Will SOL prices rise further?
Historical trends show a correlation between stablecoin supply growth and TVL relative to SOL prices.
For example, following a 93% surge in stablecoin supply in September 2021, SOL rose 45.76% in two months from $177 on September 11, 2021 to an all-time high of $258 on November 6, 2021.
If history repeats itself, SOL price could increase by a similar 45%, reaching $362 by March 2025.
“If $SOL repeats this price action following a rapid increase in on-chain stablecoin supply, a similar 45% price increase could push $SOL up to $362 by the end of March 2025,” SolanaFloor recently reported. Responded to Solana’s growth. ecosystem.
Likewise, from June 25, 2021, to November 8, 2021, TVL increased by over 2,000%, with the price rising by 800% during the same period. This means that if Solana’s TVL trend continues, the price will rise due to increased demand for SOL tokens.
“Solana is preparing a mass movement!” CryptoElites, a popular cryptocurrency analyst, said this in a post about X on January 24:
The bullish analyst shared the chart below which shows that SOL’s price action since November 2024 has pushed the price above the 2021 descending trendline. This technical setup projects Solana’s near-term target at $450. Analysis suggests SOL could end up in the $678-$1,099 range.
“The technical outlook is completely positive. There is great progress ahead!”
SOL/USD weekly chart. source: Crypto Elite
Similar sentiments were shared by CryptoExpert101, who believes the price of SOL could reach “over $1,000” in 2025.
“Solana is too easy for the average retail investor to use.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.