Solana Stablecoin Supply Returns to All-Time High as Onchain Markets Reawaken

Despite choppy market conditions, Solana’s stablecoin supply has returned to over $12.65B, a mere $20M short of previous all-time highs.

Solana’s soaring stablecoin supply growth has coincided with rising DEX trading volume, suggesting traders could be returning to the trenches as macro conditions stabilize.

Meanwhile, low stablecoin lending yield implies traders are still reluctant to express their opinion on the market.

Stablecoin Supply Cracks $12.6B

Fresh liquidity has been entering the Solana ecosystem at an elevated pace in recent weeks, with issuers like Circle and Tether minting over $1B in stablecoins on Solana in the past two weeks.

According to Artemis data, Solana’s total stablecoin supply has surged back to $12.65B, just shy of all-time highs recorded in February. 

The network’s rising supply of stablecoins could suggest that network participants have faith in the continuation of the 2025 bull run, and are keeping liquidity onchain instead of cashing out to fiat.

Stablecoin Yield Suggests Low Risk Appetite

Despite booming stablecoin supplies, onchain lending rates suggest that we are still far from peak euphoria. As the market’s risk appetite grows, demand for stablecoins rises, boosting lending rates as traders rush to open leveraged positions.

According to Rudelabs data, stablecoin lending rates across the ecosystem are hovering between 4-6%, far short of what we would typically see at the heights of onchain mania. At previous peaks, lending rates have surged as high as 25%, indicating traders are confident in their ability to outperform steep interest rates.

Given that Solana’s stablecoin supply is returning to all-time highs, but lending yield remains low, it could be argued that traders are preparing to deploy capital, but are still unsure of which direction markets will turn. Market participants may be waiting for a confirmation of bias before taking long or short positions.

Solana DEX Volume Reclaims Top Spot

After briefly conceding its crown to Ethereum, Solana’s DEX trading volume has reasserted its dominance of onchain markets. While rival chains suffer from languishing DeFi activity, Solana’s weekly trading volume is up 12.38% from last week, catapulting Solana back to its position atop DEX volume rankings.

With the debut of LaunchLabs, Raydium’s eagerly anticipated answer to pump.fun, Solana’s memecoin trenches are witnessing renewed interest. 

According to Blockworks data, Solana’s memecoin trading volume has steadily increased over the past week, consistently representing over 50% of the network’s volume share.

With U.S. President Donald Trump claiming to be securing trade deals with various nations, macro conditions are looking significantly more stable than in previous weeks. However, despite returning confidence, markets are still wracked with uncertainty, with the Trump Administration’s erratic announcements casting fear and doubt throughout the financial world.

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