Solana has seen a significant increase in stablecoin inflows, reaching billions over the past six months. During this period, the price of SOL increased by almost 250%.

The total market cap of stablecoins currently stands at $161 billion, roughly 14% of the all-time high of $188 billion recorded in April 2022. Analysts point out that the Layer-1 token could see bigger gains if stablecoin market cap returns. To its climax.

Solana Stablecoin Flows Drive SOL Price Rally

The volume of stablecoin inflows into the Solana network has reached $1.5 billion since December 2023, according to DefiLama data. During this period, the price of SOL has risen by 246% to $173 at the time of writing. The current value of stablecoins on Solana is $3.04 billion, while the total value locked (TVL) is $4.92 billion.

Stablecoin inflows and Solana price rise are closely linked. High liquidity makes it easier to trade SOL tokens, leading to more trading and investment activity.

As a result, demand for SOL tokens increases, pushing the price higher. This increased interest and investment strengthens confidence in the Solana network, attracting more developers, projects, and users.