According to data from X on-chain data analytics platform Lookonchain, total stablecoin inflows on Ethereum and Solana have increased significantly over the past seven days. Lookonchain revealed that Ethereum received around $1.1 billion in inflows, while Solana received around $202 million, mainly from USDC and USDT.
The Ethereum network’s stablecoin net flows this week increased from last week’s outflow of over $63 million to the current inflow of $1.1 billion. However, Solana’s inflows over the past seven days are still more than $200 million lower than the previous week.
Lookonchain data showed that Solana recorded more than $424 million in USDC and USDT inflows over the past week.
The on-chain data analytics platform also noted an overall increase in stablecoin inflows on other chains, including TON, Avalanche and Polygon. TON recorded inflows of approximately $22 million. Avalanche, Hyperliquid, Polygon, Base, Noble, BNB Chain, SUI and Near Protocol registered over $83 million, $54 million, $43 million, $30 million, $16 million, $9 million, $3.6 million and $3.3 million in inflows respectively .
Arbitrum and Optimism had the largest outflows over the past seven days. Arbitrum lost more than $2 billion in stablecoins, while Optimism lost more than $14 million. Aptos also had significant outflows over the past seven days, recording more than $3 million in stablecoin value.
Stablecoins have seen growth since Trump’s presidential victory
Solana added about $1 billion to major stablecoins in the past month, mainly thanks to USDC expansion pic.twitter.com/qPDzGZIQXX
— Dan Smith (@smyyguy) December 31, 2024
Data from Coingecko shows that the total value of stablecoin recorded on blockchains as of December 31 for USDC and USDT was $44 billion and $137 billion, respectively.
Also more data from Tie Terminal revealed a rise in the value of stablecoins on Ethereum Layer 2 chains in December, to more than $13.5 billion. Solana and Ethereum each further recorded more than $1 billion in stablecoin inflows in December. For Solana, premium income in December amounted to more than 12% value growth in the chain.
A report by US bank Citibank attributes the recent growth to the victory of incoming US President Donald Trump in the November elections. Citibank further revealed that USDT, USD Coin and DAI had registered growth of over $25 billion since Trump’s victory. The analysis also suggested that the growth reflected the crypto community’s hope that newly elected President Trump would benefit the crypto market.
Another Bloomberg report suggested that stablecoins will go mainstream this year. The report suggested that the industry, which is worth $205 billion, is seeing more adoption because it offers a safer investment option.
Also the statement of Kenji Hoki, director of financial services of KPMG Japan, from September 2024 suggested that stablecoins could become mainstream in the next six to twelve months.
On January 5, the founder and engineer of Aptos Labs shared a similar opinion on X, which says that stablecoins will experience a parabolic rise in 2025. The Aptos Labs engineer also revealed significant growth in daily stablecoin transaction volumes since the beginning of the year, hovering around 4x since January 1.
Regulatory changes will drive adoption of stablecoins
A Bloomberg report from December 28 revealed global banks’ increased interest in stablecoins, which could also fuel current growth. Banks like France’s Société Générale and London-based Revolut have explored stablecoins.
The blockchain and crypto division of Société Générale, the Société Générale-Forge, introduced a euro-backed stablecoin, the EUR CoinVertible (EURCV), in April last year. European financial group ODDO BHF SCA is also exploring a euro-backed stablecoin.
The report shows that the recent interest from banks is a result of the regulatory clarity created by the European Union. Many EU countries are planning to implement the Markets in Crypto-Assets Regulations (MiCA) to create a more uniform environment for crypto markets. MiCA, which went live on December 30, will provide an opportunity for the supply of licensed stablecoins within Europe.
The Bretton Woods Committee reported that the European stablecoin market would be secured around regulated tokens. The report further explained that exchanges would follow suit and impose restrictions on unregulated crypto services in the region.
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