- Solana added over $1 billion in stablecoin TVL in December 2024, bringing its total to $5 billion, driven primarily by USD Coin.
- While Ethereum remains the dominant DeFi platform, Solana’s rapid growth, innovative projects, and retail adoption position it as a strong competitor in the crypto ecosystem.
Solana has attracted significant attention as we commence 2025. Notably, according to data from DefiLlama, Solana has added over $1 billion in stablecoin total value locked in December, mostly, in USDC. This influx has put the digital asset a front runner in the DeFi sector.
It is worth mentioning that totally, Solana hosts approximately $5 billion stablecoin TVL.
Solana added about $1b in major stablecoins over the last month, mostly driven by USDC expansion pic.twitter.com/qPDzGZIQXX
— Dan Smith (@smyyguy) December 31, 2024
Significantly, USDC remains the dominant stablecoin on Solana, comprising nearly $4 billion of its TVL, while Tether’s USDT accounts for an additional $1 billion. This growth highlights the accelerating adoption of stablecoins, which are integral to DeFi ecosystems.
Stablecoins provide liquidity and stability, serving as an “on-ramp” for users to engage in decentralized financial applications, as noted by Citi in a recent research report.
Across blockchain networks, the combined market capitalizations of USDT and USDC reached $137 billion and $44 billion, respectively, by the end of 2024. These figures reflect a broader trend of stablecoin adoption, which surged following the election of President-elect Donald Trump in November.
According to a leading news news outlet, Trump’s victory is seen by many as a boon for the cryptocurrency industry, catalyzing an increase of more than $25 billion in the market caps of USDT, USDC, and Dai (DAI).
In the same vein, due to the potential friendly cryptocurrency landscape, Franklin Templeton, a prominent issuer of spot Bitcoin exchange-traded funds (ETFs), has projected a significant shift in global financial systems with the adoption of Bitcoin as a strategic national reserve asset in 2025.
While Ethereum remains the dominant player in DeFi with over $110 billion in stablecoin TVL, Solana has emerged as a formidable competitor. In 2024 alone, Solana’s total TVL rose fivefold, from $1.4 billion to $8.6 billion, propelled by increased adoption of Solana-based applications and a surge in speculative trading.
Grayscale Research highlighted Solana’s growing appeal among retail traders, particularly those speculating on memecoins and AI agent tokens. In December, Grayscale added Solana-native DeFi projects Jupiter (JUP) and Jito (JTO) to its list of top tokens to watch in early 2025.
Notably, Jito, a staking pool, reported monthly revenues exceeding $100 million in November and December from priority fees and tips, according to Kairos Research.
Solana’s performance in 2024 has not only positioned it as an Ethereum alternative but also as a blockchain capable of attracting significant stablecoin liquidity. With its TVL growth and innovative DeFi projects, the network is carving out a unique niche in the crypto ecosystem.
However, Ethereum still holds a commanding lead in stablecoin TVL, emphasizing Solana’s need for continued innovation and adoption to close the gap. As stablecoins remain the backbone of DeFi, Solana’s ability to attract users and liquidity will be pivotal in shaping its trajectory in 2025 and beyond.
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