According to Cointelegraph, Solana's stablecoin supply has experienced a significant increase in 2025, rising by 156% to surpass $13 billion, marking a new all-time high. This surge underscores Solana's growing influence in the decentralized finance (DeFi) ecosystem, where stablecoins play a crucial role in driving liquidity and increasing demand for Solana's native token, SOL. Circle's USDC remains the preferred stablecoin for Solana users, holding a 77% market share. Historically, increased stablecoin inflows have been associated with price rallies, as evidenced by a 230% rise in SOL's price between December 2023 and August 2024, which coincided with a 160% increase in stablecoin inflows.
Solana's total value locked (TVL) has also seen a notable rise, growing from $6.1 billion on April 9 to $7.65 billion by May 6, reflecting a 25% increase in less than a month. This growth positions Solana as the second-largest blockchain in terms of TVL and the leader in decentralized exchange (DEX) volumes. The network's daily transaction count has increased by 25% over the past month, reaching 57.77 million transactions. Solana commands a 27.7% market share in DEX volumes, surpassing competitors like Ethereum and BNB Chain, which hold 18% each. Positive developments include a 44% increase in deposits on Sanctum, a liquid staking application, and 25% growth on platforms like Jito and Kamino.
The price of SOL has formed a bull flag pattern, a bullish chart setup that suggests potential upward movement. This pattern typically resolves when the price breaks above the upper trendline, potentially pushing SOL's price target to $220, a 53% increase from its current level. Crypto analyst RisHad notes that SOL needs to maintain support between $120 and $130 to enhance the likelihood of reaching $178 and beyond. However, it's important to note that this article does not provide investment advice, and readers should conduct their own research before making any investment decisions.
