{"id":394315,"date":"2025-06-06T18:09:10","date_gmt":"2025-06-06T12:39:10","guid":{"rendered":"https:\/\/dripp.zone\/news\/solana-stablecoin-supply-dip-led-by-1-8b-usdc-outflow-crypto-news\/"},"modified":"2025-06-06T18:45:20","modified_gmt":"2025-06-06T13:15:20","slug":"solana-stablecoin-supply-dip-led-by-1-8b-usdc-outflow-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/solana-stablecoin-supply-dip-led-by-1-8b-usdc-outflow-crypto-news\/","title":{"rendered":"Solana stablecoin supply dip led by $1.8B USDC outflow – Crypto News"},"content":{"rendered":"

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This is a segment from the Lightspeed newsletter. To read full editions, <\/em>subscribe<\/em><\/a>.<\/em><\/p>\n

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Solana\u2019s real economic value, app revenue, and DEX volumes were all up<\/a> on the order of 20-30% in May, but one noteworthy figure didn\u2019t keep pace: stablecoin supply.<\/p>\n

Today, there are 15% fewer stablecoins on Solana than a month ago, per Blockworks Research data<\/a>. Stablecoins are often an important source of liquidity for doing things like swapping in and out of SOL, although Solana\u2019s stablecoin dip comes after the gray swan that was Donald Trump\u2019s memecoin<\/a>.<\/p>\n

Solana\u2019s stablecoin supply doubled essentially overnight when Donald Trump\u2019s memecoin was paired with USDC, meaning investors essentially had to buy TRUMP with Circle\u2019s stablecoin. Interestingly, the fresh stablecoin supply didn\u2019t evaporate when TRUMP investors flocked for the exits, and it even hit a fresh all-time high in April when the presidential memecoin was far from its initial highs.<\/p>\n

So given that context, some in Solana find the decline in stablecoin supply unconcerning.<\/p>\n

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Source: Blockworks Research<\/em><\/figcaption><\/figure>\n

\u201c[Y]ea this chart looks a lot better than the SOL price chart lol,\u201d Lulo co-founder Jesse Brauner said when I asked him about the stablecoin supply dip.<\/p>\n

In any event, the stablecoin exodus has been led by USDC, which saw its market cap on Solana shrink by some $1.8 billion in May, according to Blockworks Research analyst Carlos Gonzalez Campo. Perena founder Anna Yuan speculated that the sudden drop in supply could be funds shorting the dollar in a topsy-turvy macro environment.<\/p>\n

Non-USDC stables actually grew last month, notably including PayPal\u2019s PYUSD, which saw its supply grow 48%.<\/p>\n

PYUSD is one of several newer stablecoins vying for a piece of USDC\u2019s 70% market share on Solana. It\u2019s joined by USDG \u2014 a Paxos-issued stable that pledges to share revenue with its network partners, which include Robinhood and Kraken \u2014 and USX, a forthcoming basis-trade token that its developer company dubbed<\/a> \u201cSolana\u2019s stablecoin.\u201d<\/p>\n

I have speculated previously<\/a> that Solana may look to drive adoption on non-USDC stablecoins, since a significant portion of Circle\u2019s revenue goes to Coinbase, which is possibly building Solana\u2019s chief competitor in Base. On a permissionless network, however, disincentivizing usage of a product that users want is pretty difficult.<\/p>\n

Gonzalez Campo noted how alternative stablecoin growth strategies have so far mainly revolved around shelling out incentives for users, but paying for adoption is ultimately unsustainable.<\/p>\n

The analyst added he\u2019d like to see a B2B model where upstart stablecoins like USDG share revenue with DeFi protocols to create a vested interest in supply growth.<\/p>\n

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This is a segment from the Lightspeed newsletter. To read full editions, subscribe. Solana\u2019s real economic value, app revenue, and DEX volumes were all up on the order of 20-30% in May, but one noteworthy figure didn\u2019t keep pace: stablecoin supply. Today, there are 15% fewer stablecoins on Solana than a month ago, per Blockworks […]<\/p>\n","protected":false},"author":2,"featured_media":394317,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-394315","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/394315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=394315"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/394315\/revisions"}],"predecessor-version":[{"id":394319,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/394315\/revisions\/394319"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/394317"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=394315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=394315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=394315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}