Meme token slowdown triggers stablecoin exodus from Solana
Stablecoin exodus from Solana
Solana’s explosive meme token boom appears to be fading, triggering a sharp decline in stablecoin liquidity across the network.
After reaching a peak of over $12 billion in total stablecoin supply, Solana has seen a net outflow of $772 million in USDC and USDT over the past week, signaling a shift in market dynamics, according to the Cryptopolitan.
The slowdown follows a period of intense speculation, where traders flooded into Solana’s decentralized exchanges (DEXs) to capitalize on rapid token launches and high-risk trading strategies. However, as many of these tokens failed to sustain their momentum, investors began pulling funds from the ecosystem.
Solana’s Liquidity Contracts
Solana’s DeFi ecosystem, which relies heavily on stablecoin liquidity, is feeling the impact. The network’s total locked value has fallen to $8.77 billion, with Raydium, its largest DEX, losing 40% of its liquidity in the past month.
Meanwhile, newer platforms like Meteora have gained market share, largely driven by speculative trading pairs such as TRUMP-USDC, which recently accounted for 3.11% of all USDC on Solana.
Despite continued innovation, the trend raises concerns about the sustainability of Solana’s market activity. The ability to mint and redeem USDC has made it easier for traders to exit the ecosystem, with bots and arbitrageurs reportedly extracting billions in value.
While some supporters argue that transaction volume remains a stronger indicator of network health than value locked, the ongoing decline in stablecoin reserves suggests Solana faces increasing pressure to retain liquidity. Without renewed confidence in its DeFi ecosystem, outflows may continue, reshaping the network’s financial landscape.
Meanwhile, the Official TRUMP meme coin has recently sparked ongoing analysis of its impact on the cryptocurrency market. Despite reaching a $14.5 billion market cap in under a day and attracting 400,000 new crypto users, its effect on overall market capitalization remains minimal.
