$USDC $USDC Solana News: Solana Bull Flag and Stablecoin Surge Suggest Price Target for SOL is $220

The price of SOL aims for a breakout as stablecoin supply and DeFi activity reach record highs on the Solana blockchain.

Solana's (SOL) bullish momentum may have paused after peaking at $156 on April 25, but new data from the network's ecosystem suggests another price surge may be imminent. A confluence of technical and fundamental indicators — including a bull flag chart pattern and skyrocketing stablecoin market cap — supports a potential price increase towards $220.

Solana's Stablecoin Market Cap Reaches Record $13 Billion

The issuance of stablecoins on the Solana blockchain has surged 156% year-to-date, hitting a new all-time high of $13 billion. Much of this growth has been driven by Circle's USDC, which accounts for 77% of Solana's stablecoin market.

Stablecoins are the backbone of decentralized finance (DeFi) on Solana, providing liquidity and driving on-chain transactions. As demand for these assets increases, SOL — the native token used to pay fees and stake — experiences a rise in utility, historically correlating with price increases.