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Solana has experienced a rise in stablecoin supply, hitting a new milestone. According to the research report by CCData, since mid-January, the overall number of stablecoins on Solana (SOL) has increased by over 73% due to a spike in network activity with the introduction of President Donald Trump’s memecoin.
CCData’s report also highlights that on January 30 that Solana’s stablecoin supply was at $11.1 billion, a 112% growth since January 1.
$TRUMP Memecoin Rise Pushes Solana’s Popularity
The popularity of former President Donald Trump and the expanding trend of meme-based cryptocurrencies have both contributed to the $TRUMP memecoin’s notable rise in popularity.
After Donald Trump launched his memecoin, $TRUMP, Solana network also saw a spike in money inflows, leading to record trading activity, which coincided with this increase, according to CCData.
CCData claims that Solana is now the third-largest blockchain network in terms of stablecoin supply, surpassing BNB Chain. It still trails Tron and Ethereum.
Also Read: Virtuals Protocol Expands To Solana For More Performance And Reach
Why is $TRUMP Memecoin Gaining Popularity?
Taking advantage of viral marketing and fan interaction, $TRUMP has drawn investors seeking new ideas and possible quick profits, which reflects the speculative nature of cryptocurrency trends.
The main driver of TRUMP’s recent rise has been individual investors. Nearly half of all TRUMP wallets are recently registered, and 80% of holders have balances under $1,000, according to DWF Ventures.
The larger Solana ecosystem has been impacted positively by the TRUMP memecoin rise.
Significant trade traffic was brought to Solana by the memecoin debut, which apparently caused network congestion. More than 200,000 new users have joined the memecoin since its inception, according to Moonshot, the website where Trump directed his supporters to buy it.
Solana’s Overall Popularity Rise
Because of its quick transactions and cheap costs, Solana’s blockchain has become quite popular and is now a serious rival to Ethereum. Solana provides faster processing times by enabling thousands of transactions per second with its proprietary Proof of History (PoH) consensus technique.
Decentralized apps (dApps), DeFi initiatives, and NFT developers have been drawn to this ecosystem’s scalability. As more people look for alternatives to Ethereum’s congestion and expensive gas prices, Solana’s rise has been further bolstered by its expanding developer community and investor interest.
As a result, Solana keeps drawing interest in the cryptocurrency industry as a quick and affordable blockchain platform.