The supply of stablecoins on Solana's layer-1 blockchain network has been steadily increasing since the start of the year, surpassing the $3 billion mark in the past week.

According to data from the blockchain analysis platform Artemis, the supply of stablecoins on the network has risen by 55.72% over the last three months, reaching $3.12 billion. However, this figure is notably lower than the balance recorded in 2022, when over $6 billion worth of these assets were on the blockchain. During the bear market, it dropped to as low as $1.4 billion before starting its recent upward trajectory.

Meanwhile, the volume of stablecoin transfers on Solana has surged by 164% to $1.4 trillion, indicating significant activity on the network.

USDC, the stablecoin from Circle, dominates the landscape, representing 73% of stablecoin assets on Solana. On April 2, USDC accounted for a substantial $63.69 billion of stablecoin transfer volume, overshadowing USDT's $812.41 million. EURC ranks third with less than $100,000 in volume.

USDC's dominance on Solana can be attributed to Circle's launch of its Cross-Chain Transfer Protocol (CCTP) on the network on March 26.

The increasing balance of stablecoins on Solana reflects heightened liquidity and suggests a rise in capital inflows. This surge is believed to be fueled by the influx of capital into the network amid the frenzy surrounding meme coins and the expanding DeFi activity within the Solana ecosystem.

Despite previous associations with Sam Bankman-Fried, the founder of FTX, the Solana blockchain ecosystem has experienced significant growth over the past year. This growth has attracted new users and led to partnerships with major global financial entities like Visa and Shopify.