Solana and Base See Massive Stablecoin Inflows Amid Market Slowdown

Two of the leading smart contract networks, Solana and Coinbase’s Layer-2 scaling solution Base, have seen significant stablecoin inflows over the past week, at a time in which the cryptocurrency market has been experiencing a significant slowdown.

According to data shared by on-chain analytics firm Lookonchain, Solana led when it came to stablecoin inflows, seeing over $424 million enter the network over the past seven days as the total value locked (TVL) on its decentralized finance ecosystem grows.

The network, according to DeFiLlama data, has seen its total value locked rise by 4.45% over the past week, compared to a drawdown in most other smart contract networks, with Base – which saw $75 million in stablecoin inflows over the past week – seeing a small 0.5% rise.

In the past 7 days, stablecoins(USDT&USDC) on #Solana increased by $424.87M, and stablecoins(USDT&USDC) on #Base increased by $75M. pic.twitter.com/m8Qic0HMed

— Lookonchain (@lookonchain) December 30, 2024

Solana’s inflows and DeFi ecosystem growth are notable, as the network has recently seen a significant transaction boom associated with the highly anticipated airdrop of the native token of the popular non-fungible token (NFT) penguin cartoon collection, Pudgy Penguins.

The fact that Solana is still seeing stablecoin inflows, which are likely to increase liquidity on its DeFi ecosystem and further fuel its development, shows there wasn’t an exodus after users took advantage of the airdrop.

Solana’s Stablecoin Supply Grows, Base’s Stalls

The supply of stablecoins on Solana has, in fact, been steadily growing over the last few months as the cryptocurrency recovers. According to data from Artemis, at the beginning of the year there were around $1.8 billion worth of stablecoins circulating on Solana.

That figure has since surged to now stand at $4.5 billion, with month-over-month growth being mostly stable throughout the year. These tokens’ supply on Solana is, nevertheless, still below the $6 billion all-time high registered in early 2022.

Data from the same platform shows that stablecoin supply on Base grew exponentially from around $280 million at the beginning of the year to a $3.6 billion all-time high in early November. Since then, it has largely stalled, to now stand at around $3.4 billion.