Non-USDC stablecoins capture 25% of Solana market as diversification accelerates

Stablecoin issuance on Solana outside of USDC and USDT has increased nearly tenfold since January 2025, with alternative tokens like USD1, USDG, and PayPal’s PYUSD now accounting for 25% of the network’s $14.2 billion stablecoin market, according to on-chain analytics.

The explosive growth underscores a rapidly diversifying stablecoin supply and signals rising confidence among issuers, developers, and institutional users embracing Solana as a settlement layer.

The data shows that non-USDC/USDT assets—once marginal—now account for roughly 25% of Solana’s total stablecoin supply, up from just 3% a year ago.

This diversification comes as Solana’s overall stablecoin supply expands aggressively amid renewed demand for decentralized finance (DeFi), faster settlement, and low-cost transactions.

Stablecoins Supply Expands as Solana Hits Critical Mass

At the time of publication, Solana’s total stablecoin market capitalization stood at $14.227 billion, reflecting a 3.47% increase over the past seven days.

While USDC remains dominant, controlling 57.43% of the stablecoins supply, its grip is no longer absolute.

USDT accounts for approximately 17.74%, leaving a growing share for alternative stablecoins that are reshaping Solana’s monetary mix.

Cryptorians reported that stablecoin supply on Solana hit an all-time high of $16.2 billion in December, a milestone that confirmed the network’s emergence as a serious financial rail.

Non-USDC/USDT Stablecoin Supply Jumps 10x

On-chain metrics reveal that non-USDC/USDT stablecoin supply has surged by more than 10x since January 2025. Among the leaders:

• USD1 holds roughly 6.77%

• USDG accounts for 5.92%

• PayPal’s PYUSD represents 5.84%

This shift reflects both issuer experimentation and market demand for alternatives to the long-standing USDC-USDT duopoly.

The rapid growth also suggests that Solana’s infrastructure has matured enough to support multiple stablecoin issuers at scale.

Stablecoin Supply Growth Fueled by DeFi and Speed. Overall stablecoin supply on Solana has risen more than 75% since January 2025, driven largely by DeFi activity and Solana’s reputation for fast, inexpensive transactions.

Developers and users are increasingly opting for Solana-based stablecoins to settle trades, provide liquidity, and facilitate on-chain payments.

Solana now hosts over a dozen stablecoin deployments, including non-dollar assets like EURC (Euro) and VCHF (Swiss franc).

Meanwhile, ecosystem-native launches are accelerating: Phantom introduced CASH, while Jupiter rolled out jupUSD, embedding stablecoin supply directly into user-facing applications.

Stablecoin Supply Diversification Reduces Network Risk

For Solana, expanding beyond USDC and USDT is more than growth—it’s risk management. A year ago, any regulatory shock to Circle, USDC’s issuer, could have destabilized Solana’s entire stablecoins supply. Today, a diversified issuer base significantly reduces concentration risk.

This diversification also signals issuer confidence. New stablecoin providers are increasingly choosing Solana, reinforcing its status as a multi-currency settlement layer rather than a single-issuer network.

IMF Warns Stablecoin Supply Could Reshape Finance. The International Monetary Fund (IMF) has taken notice.

In a recent report, the IMF said stablecoin growth is fueled by tighter links with mainstream finance and their ability to enable faster, cheaper cross-border payments.

“Stablecoins are highlighting inefficiencies in existing financial systems and how technology can solve them,” said Eswar Prasad, Professor of Economics at Cornell University. “Paradoxically, it might lead to more concentration of financial power.”

The IMF also warned that rising stablecoins supply could disrupt capital flows and accelerate currency substitution—particularly as stablecoins now represent roughly 7% of the entire crypto market, attracting more capital than native crypto assets in 2025.

Stablecoin Supply Signals Long-Term Structural Shift

USDC and USDT have tripled in size since 2023, reaching a combined $260 billion market cap in 2024, with over $23 trillion in trading volume.

Yet the surge in non-USDC/USDT stablecoin supply suggests the market is entering a new phase.

Stablecoins aren’t disappearing—they’re evolving into the digital edge of the dollar system, heading toward regulation, consolidation, and deeper integration with traditional banking.

Solana’s stablecoin supply boom places it squarely at the center of that transformation.