Key takeaways:
-
Solana’s stablecoin supply rose by 156% in 2025, to hit a new record at $12 billion.
-
Solana’s TVL grew by 25% to $7.65 billion, with 27.7% decentralized exchange volume share, leading Ethereum and BNB Chain.
-
SOL price formed a bull flag, with a price target at $220.
Solana’s native token, SOL (SOL) failed to maintain its bullish momentum after reaching $156 on April 25, but an assortment of data points suggests that the altcoin’s upside is not over.
SOL stablecoin market cap hits $13 billion
Solana’s stablecoin supply has skyrocketed by 156% in 2025, surging past $13 billion to hit a new all-time high.
Stablecoins on Solana recently surged past $13B in issuance, setting a new ATH@calilyliu on why Solana is purpose-built for moving digital dollars at internet speed pic.twitter.com/WYPPg0LEG6
— Solana (@solana) May 5, 2025
Circle’s USDC (USDC) remains the stablecoin of choice for Solana users, with a 77% market share.
Stablecoins are integral to Solana’s decentralized finance (DeFi) ecosystem, driving liquidity and increasing SOL demand as it’s used for transaction fees and staking, potentially pushing its price upward.
Increased stablecoin inflows historically correlate with price rallies, as seen between December 2023 and August 2024, when a 230% rally in SOL price was accompanied by a 160% increase in stablecoin inflows from $1.55 billion to $4.06 billion.
Solana TVL and transaction count on the rise
Solana remains the second-largest blockchain in terms of total value locked (TVL) and ranks first in DEX volumes.
Solana’s TVL has risen from $6.1 billion on April 9 to $7.65 billion on May 6, an increase of over 25% in almost 30 days.
Positive signs include a 44% increase in deposits on Sanctum, a liquid staking application, and 25% growth on Jito and Kamino.
Solana’s daily transaction count has also increased by 25% over the last month to 57.77 million transactions.
While Ethereum and BNB Chain provide competition in terms of onchain volumes, the Solana network is the undisputed leader with daily DEX volumes standing at $2.61 billion at the time of writing. Solana also commands a 27.7% DEX volume market share, ahead of BNB Chains and Ethereum’s 18%.
SOL bull flag points to $220
SOL price has formed a bull flag chart pattern in the daily timeframe, as shown in the chart below.
A bull flag pattern is a bullish setup that forms after the price consolidates inside a down-sloping range following a sharp price rise.
Bull flags typically resolve after the price breaks above the upper trendline and rises by as much as the previous uptrend’s height. This puts the upper target for SOL price at $220, up 53% from the current price.
Crypto analyst RisHad said that SOL price needs to hold the $120 – $130 support to increase the chances of moving toward $178 and beyond.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
