Solana stablecoin market continues to rise

The Solana stablecoin market experienced significant rise in the first quarter of 2025. The total value of stablecoins on the network surged from $5.2 billion in January to $11.7 billion in February, a rise of 2.25 times. This growth trend began from a low of $1.5 billion in December 2023. Currently, Solana's stablecoin liquidity ranks third among all public blockchains, only behind Ethereum and Tron.

In the first quarter of 2025, Solana's average monthly on-chain stablecoin trading volume exceeded 200 million transactions. It peaked at 263.9 million transactions in January and was 237.7 million transactions in April. In comparison, there were only 25.2 million transactions in September 2023.

The peer-to-peer stablecoin trading volume is also strong. In January alone, there was a record of $59.2 billion in peer-to-peer stablecoin transfers, far exceeding the low of $10.6 billion in September 2024.

The number of unique addresses interacting with stablecoins every day has also increased significantly. In the first quarter of 2025, an average of over 3 million addresses participated in stablecoin activities daily, peaking at 4.4 million in January. This is an eightfold rise compared to 347,000 addresses in October 2023.

Solana stablecoin ecosystem is becoming increasingly diversified

Solana has a diverse stablecoin ecosystem, with new projects continuously being launched. USDC dominates in trading volume and adoption, accounting for over 70% of the total supply, followed by USDt at around 18%. In addition, there are many emerging stablecoins that make up the long tail market.

Major stablecoins include:

• USDC: Issued by Circle, the most widely used stablecoin on Solana. Currently, the supply is $9.35 billion, with 4.3 million unique accounts.

• USDt: the largest stablecoin by market capitalization globally, launched on Solana in September 2020. Currently, the supply is $2.39 billion, with 1.98 million unique accounts.

• PYUSD: Issued by PayPal in collaboration with Paxos, it will be launched on Solana in May 2024. Currently, the supply is $215.9 million, with 20,400 independent accounts.

• USDS: Formerly known as DAI, now the third largest stablecoin by market cap. Expanded to Solana via Wormhole in November 2024. Current supply is 102.4 million USD, with 7,500 independent accounts.

Other emerging stablecoins include USDe, FDUSD, USDG, AUSD, sUSD, MoveUSD, cfUSD, USDY, PST, *USD, and yUSD. These stablecoins adopt different designs and collateralization models, providing users with a variety of options.

Stablecoin Drives Borderless Financial Development

Stablecoins are becoming an important tool for global cross-border payments. The "stablecoin sandwich" model simplifies the international payment process:

1. Exchange the local currency of region A for stablecoin
2. Transfer stablecoin through blockchain
3. Exchange the stablecoin for the local currency of region B

This process makes cross-border payments faster, lower in cost, and more convenient, especially between regions with weaker financial connectivity. For example, Latin American importers can pay Asian suppliers using stablecoins, reducing transactions that would normally take days to complete to just a few minutes.

The global non-wholesale cross-border payment market is expected to rise from $39.9 trillion in 2024 to $64.5 trillion in 2032, with a compound annual growth rate of 6.2%. Common use cases include remittances, e-commerce payments, B2B payments, and international payroll disbursements.

On high-performance networks like Solana, peer-to-peer stablecoin transfers cost less than $0.01, and settlement time is less than 1 second. However, the conversion between fiat currencies and stablecoins still faces challenges such as regulatory compliance, liquidity access, and security.

Solana stablecoin off-chain solution

The new generation of products is linking Solana stablecoin balances with physical and virtual prepaid debit cards as well as virtual bank accounts, allowing users to spend stablecoins at millions of merchants worldwide. The main solutions include:

• KAST: Provides a Visa card linked to Solana USDC balance, supporting 2-6% spending rewards.

• Fuse: A personal finance wallet developed by Squads, offering virtual Visa cards and US bank accounts.

• Sanctum: Plans to launch a debit card supported by liquid staking tokens.

• Solflare: In partnership with Mastercard, allowing users to spend USDC directly from self-custody wallets.

• Solayer: Provides Emerald Visa debit cards for over 100 countries, supporting 4% stablecoin yield.

• MoonPay: announced the launch of a Mastercard linked to on-chain stablecoin balances.

These solutions provide users with a more convenient way to use stablecoins, helping to promote the application of stablecoins in daily life.

Benefits of Stablecoins for Consumers

Stablecoins offer consumers a variety of benefits:

1. Significant yield generation: Through DeFi protocols like Kamino, users can achieve stablecoin yields that far exceed those of traditional banks.

2. Value Storage: In areas of economic instability or high inflation, stablecoins become a reliable choice for preserving value.

3. Remittances and cross-border transactions: Stablecoins provide a faster and lower-cost solution for cross-border payments, particularly beneficial for migrant workers.

As the Solana ecosystem continues to develop, its high performance and low-cost characteristics make it a promising platform for the next wave of stablecoin adoption. The application of stablecoins on Solana will continue to drive financial innovation, bringing more convenience and opportunities to global users.