Solana stablecoins market cap now only accounts for 1.68% of the Total Stablecoins Market Cap (approx $150b).
The total size of Solana’s stablecoin market by 19th Nov 2022 is just north of $2.43b, a massive 60% decrease from June 2022.
USDC is still dominating 65.39% of the market cap on Solana. However, seeing a decline of -63.4% from the June 2022 peak.
Posing half of USDC’s current market cap, USDT is at #2 with a $799.5m market cap and a massive 1-month change of -55.84%.
Bears are here, yet stablecoins as a whole remain strong on-chain sitting at approximately $150b market caps which is a similar value to what it is back in Q4 2021. However, the recent FTX implosion and bleak macro outlook have severely hurt Solana more than the others due to their relationship with FTX.
The total size of Solana’s stablecoin market cap was floating around $6b at Q2 to mid-Q3 2022 before experiencing a massive bleed of almost 60% decrease now at just north of $2.43b accounting for only 1.68% of total stablecoins market cap.
This can be quite concerning for anyone that is invested in the Solana ecosystem as stablecoin supply has been correlated to the health of ecosystem stability as high demand in stablecoins can be attributed to this industry wanting to successfully scale DeFi.
USDC has always been dominating Solana's market share, taking a massive 70% share at the end of Q2 before slowly declining in October 2022 which allows USDT to slowly gain market in the month of September-November 2022 and captured almost 50% of market share before FTX's implosion.
Now, posing half of USDC’s current market cap, USDT is at #2 with a $799.5m market cap and a massive decrease of -55.84% since 19/11/022.
Comparatively, the other 14 stablecoins combined after USDT are standing at only approximately $43.4m market cap, less than 1.76% of Solana’s stables total market cap, having difficulties in capturing interest in the chain.
Due to macro conditions and bear attacks, it’s only fair if we also look to other chains and take a quick peek at their stables situation and wonder if flight to cash is happening everywhere else. However, it does seem to be that stables are indeed running from Solana as shown below:
Ethereum, growth has slowed down in comparison to last year but no bleeding in stables circulation.
BSC is stagnant at $10.5b after experiencing massive growth in Q1 2021.
AVAX stables market cap has been on a decline since the peak of March 2022 from approx. $4.5b to $1.88b now.
Polygon is showing swings of ups and downs, they did drop from a $2.6bil peak in mid-September 2022 to $1.72b now.
Major ETH L2s like Arbitrum and Optimism are showing massive growth in their stablecoins market cap.
Stablecoins are probably one of the few use cases in blockchain that have found its product-market fit, recent implosions have and will set this industry back or in this case, setting the Solana ecosystem back by couple of years with the fear of not having enough funding around to incentivize further building.
I believe we’ll see more projects raising white flags and/or possibly migrating to another healthier chain with more stables. For now, let’s all just hope that stables don't end up exiting the entire industry.