Solana Hits $11B in Stablecoins, Processes $1.6T Transfers in January

Solana’s blockchain has seen massive growth in the stablecoin space with $11 billion issued and $1.6 trillion in transactions in January 2025 alone.

According to DefiLlama, Solana is now outpacing Ethereum and Base in stablecoin transfer volume. It’s clear Solana is becoming the go to for digital payments.

The total stablecoin market is now $215 billion and Solana is a big part of that. USDC issued by Circle is the largest stablecoin on Solana with $8.5 billion issued.

Why Solana Is Leading the Stablecoin Race

Solana’s growing market share is driven by several factors that make it a favorable choice for stablecoin issuers and users alike.

• Scalability: Solana processes up to 65,000 transactions per second, providing an efficient platform for high-volume transfers.

• Lower Fees: Compared to Ethereum’s costly gas fees, Solana offers significantly lower transaction costs, attracting retail and institutional users.

• Growing Institutional Adoption: Partnerships with major stablecoin issuers like Circle and Tether have fueled its expansion, leading to increased liquidity on the network.

• Competitive Edge: Solana’s $1.6 trillion in stablecoin transactions surpasses Ethereum’s $607 billion and Base’s $664 billion, showcasing its growing dominance.

Stablecoin adoption on Solana has seen significant growth, with USDT issuance reaching nearly $2 billion and PayPal’s PYUSD crossing the $142 million mark.

Solana Price Prediction: Technical Outlook

Solana (SOL) is currently trading at $254.75, down 0.65% on the day. The recent price action shows SOL consolidating just below the key resistance level of $273.52. A breakout above this level could pave the way for further gains, with the next major resistance at $295.88 and an all-time high target of $317.43.

On the downside, immediate support lies at $241.88, with further levels at $218.97, which coincides with the 50-day EMA, currently acting as dynamic support. A breach below this level could expose SOL to a decline toward $198.78.

Traders should monitor volume spikes and RSI levels for potential breakout signals, as continued bullish momentum could see SOL challenging its recent highs.

Key Levels to Watch:

• Resistance: $273.52, $295.88, $317.43

• Support: $241.88, $218.97, $198.78

The Future of Solana in the Stablecoin Market

As Solana continues to lead in stablecoin transactions, its role in the broader cryptocurrency ecosystem is becoming increasingly significant. With ongoing upgrades and scalability improvements, it could further challenge Ethereum’s dominance and attract even more institutional players in the coming months.