The Solana blockchain attracted over $1 billion in $USDC deposits in December as stablecoins have seen their market capitalization explode following Donald Trump’s victory in the November U.S. presidential election.
Stablecoins are considered the gateway to the crypto sector, as they allow investors to exchange their fiat assets for blockchain-based equivalents, either as a safe haven or to deploy these resources across the space.
When stablecoin inflows surge, it indicates that investors’ interest in cryptocurrencies is increasing.
A recent report from Citi Research pointed out that the aggregated market value of the largest stablecoins – USDT, USDC, and Dai – has surged by $25 billion since November.
The main catalyst for such a tremendous inflow into the crypto market was President-elect Donald Trump’s victory, as investors expect his pro-crypto administration to accelerate the adoption of cryptocurrencies by mainstream institutions through legislative enhancements.
Meanwhile, the Solana ecosystem has expanded exponentially in the past few years amid the dawn of meme coins like Bonk ($BONK) and dogwifhat (WIF) along with the recently airdropped Pudgy Penguins’ official token $PENGU.
The aggregated value of this segment within the Solana network stands at $18.97 billion according to data from CoinGecko.
“Retail traders increasingly enter the crypto market through Solana [as] speculation intensifies around Solana-based memecoins and AI agent tokens,” analysts from Grayscale noted in a recent report.
In addition, several decentralized finance (DeFi) protocols like Jupiter and Jito have materialized to further fuel the ecosystem’s growth and enhance the tools investors use to trade, lend, borrow, and stake their assets.
The total value locked (TVL) within the Solana network currently stands at $8.57 billion, according to data from DeFiLlama.
Although this figure pales in comparison to the $65.95 billion that the Ethereum network currently boasts, Solana’s number are growing much faster than those of its competitors.
Since 2024 started, Solana’s TVL multiplied by 6 times while Ethereum’s TVL only doubled.
The main reason for this significant gap is Solana’s lower transaction costs, faster execution speed, and greater efficiency than the Ethereum Virtual Machine (EVM).
$SOL Once Again Bounces Off Key Trendline Support
The crypto market has been taking a breather since its late November peak when Bitcoin ($BTC) surged to $108K.
The pullback has been relatively mild for the most well-established tokens while meme coins and other alt-coins have faced double-digit losses during that period.
Source: TradingView / SOLUSDLast year was great for Solana ($SOL) as it booked gains of 85.7%.
However, the best of this cycle may lie ahead, as BTC typically takes the lion’s share in the first wave, while altcoins tend to deliver the best results during the so-called ‘altseason’.
A bullish pattern has been forming for a while since the November pullback started. It is called a bull flag and it typically precedes a huge spike in the price of the asset.
Last week, the price touched the lower bound of the flag for a fourth time.
This confirms the importance of this setup for market participants and increases the odds that the pattern could resolve as expected.
If the price of $SOL rises above the upper bound of the flag, chances are that the asset could soon retest the $260 level and higher.
Although a move near $10,000 seems pretty unrealistic at the moment for $SOL, the pieces seem to be in place for this cryptocurrency to surge to $300 on short notice.
Solaxy Will Eliminate Solana’s Network Congestion Issues for Good
The Solana blockchain has experienced major congestion in the past few months amid the rise of meme coins and the significant trading volumes that decentralized exchanges (DEXs) build on the network currently handle.
Solaxy is a layer-two (L2) network that has been designed to ensure that these issues no longer prevent the network from further growing its rapidly expanding ecosystem of dApps and native assets.
Its one-of-a-kind offline bundling mechanism increases the network’s efficiency by recording multiple transactions in a single block.
Currently, the native token of the Solaxy L2 blockchain, $SOLX, is being sold at a discounted price as part of the project’s presale event.
Investors have already poured $7.6 million into $SOLX as they believe in the potential that Solaxy has to become a key piece of the Solana network’s infrastructure.
Apart from the tremendous potential for price appreciation that $SOLX has, the token also offers attractive staking rewards of 479% as of today and investors have already decided to set apart 2.4 billion tokens to take advantage of this opportunity.
To buy $SOLX, simply connect your wallet to the Solaxy presale event website and convert your USDT or ETH into the native token of this L2 network. It is also possible to use a bank card to buy $SOLX.
The token is offered at a discounted price of $0.001588 that will be available for only 48 more hours. After that, the price will increase.
This project has been audited by Coinsult to ensure that there are no weaknesses or flaws in its coding. In addition, the $SOLX token has a hard cap of 138 billion tokens.
Once the presale ends, you’ll see your $SOLX balance show up on your wallet so you can keep track of how its price moves.
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