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The rapid adoption of stablecoins is reshaping the decentralized finance (DeFi) space, and Solana stands out as a key player in this emerging market.
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In December, Solana’s Total Locked Value (TVL) in stablecoins reached nearly $5 billion, indicating growing interest in USDC among investors and DeFi participants.
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According to Dan Smith, Solana currently hosts nearly $4 billion worth of USDC, confirming that stablecoins have become a core asset in the DeFi ecosystem.
Discover how Solana became a leader in the DeFi industry and reached $5 billion in total locked value (TVL).
Top adoption of stablecoins in Solana’s decentralized finance
The latest data from DefiLlama shows that Solana’s total locked value in stablecoins has risen to approximately **$5 billion**; This significant increase was driven primarily by US dollar coins (USDC). This jump highlights a key trend in decentralized finance (DeFi), where stablecoins are a fundamental building block for liquidity and trading purposes.
In December alone, Solana added an additional **$1 billion** to its stablecoin TVL, demonstrating a solid flow of investment into its ecosystem. **$4 billion** of this TVL currently consists of USDC, cementing its dominance among the platform’s stablecoins. Besides USDC, Tether (USDT) also has a significant share, contributing approximately **$1 billion** to Solana’s TVL.
Stablecoin growth mechanism
By the end of 2023, the total market capitalization of the major stablecoins will be approximately **$137 billion** and **$44 billion*, including **USDT** and **USDC**, according to **CoinGecko** Saved as * . This increase can be partially attributed to macroeconomic events such as increased investor interest following the **US presidential election**, which created optimism in the cryptocurrency space.
According to a **Citi Research** report, the market values of the three largest stablecoins have increased by a total of more than **$25 billion** since November. This trend is particularly important for the DeFi space because stablecoins provide the necessary liquidity for participants who want to participate in various decentralized applications.
Positioning Solana as an Ethereum competitor
With its rapid rise, Solana has become a strong competitor to Ethereum, especially in the DeFi field where complex smart contracts work. Specifically, since 2023, **Solan’s SOL token** has outperformed ETH by approximately **eight times**. In addition, Solana’s TVL in DeFi applications increased from **US$1.4 billion** to **US$8.6 billion** in 2024, solidifying its growth.
This dramatic growth in the TVL category can be attributed to the increased participation of retail traders, especially in projects based on Solana, memecoins and AI tokens; **Grayscale Research** also highlighted this situation. In addition, Grayscale identified the original Solana **Jupiter** and **Jito** projects as important signs to watch in December, indicating growing institutional interest in the ecosystem.
For example, Jito, which functions as a Solana **staking pool**, reported that fee and tip income exceeded **$100 million** in just two months, demonstrating the profitability of investing in these decentralized platforms.
Despite Solana’s significant stablecoin TVL growth, Ethereum still has a decisive advantage with a stablecoin TVL of more than **$110 billion**. This difference highlights the ongoing competition in the DeFi space, as both platforms seek to innovate and expand their user bases.
Conclusion
As a result, Solana’s growing influence in the DeFi space highlights a significant shift towards its commitment to decentralized finance with its **$5 billion** stablecoin TVL. As the adoption of stablecoins increases, the importance of liquidity in these ecosystems cannot be overlooked. Although Solana has made significant strides over Ethereum, the environment remains competitive and both networks are likely to evolve alongside each other. The future of DeFi promises innovative developments that can reshape the way finance works on a global scale.
