Solana’s Stablecoin Inflows Beat Ethereum in 2025 – Is $SOL Poised to Outperform?

According to data from DeFi Llama, Solana DeFi protocols have received $6.6 billion worth of stablecoins since the year started with the total balance currently standing at $11.7 billion. This translates into a 129.4% increase in just 34 days.

During this same period, Ethereum’s stablecoin balance has expanded by just 6.3% to $117.5 billion.

Although the Ethereum ecosystem’s stablecoin volume is 10 times larger than Solana’s, it is evident that the latter is augmenting its reach at a faster pace.

The Ethereum DeFi space includes widely successful decentralized protocols like Lido, AAVE, Maker, Uniswap, and Compound Finance.

Meanwhile, the rise of meme coins and the growing popularity of projects like Raydium and Jupiter on Solana seem to be attracting both capital and attention from large investors.

By the end of 2023, the total value locked (TVL) within the Solana ecosystem stood at just $1.4 billion compared to $28.9 billion locked in Ethereum’s DeFi ecosystem, meaning that the latter was 20.6 times larger than the former in terms of the amount of capital it managed.

A year later, Ethereum’s TVL was only 8 times higher than Solana’s, with the latter’s figure currently standing at $8.5 billion compared to $68 billion locked within the network created by Vitalik Buterin.

At this pace, the distance between the two could shorten significantly if the current trajectory continues.

Solana Bounces Off Key Support on the Daily Chart – Will It Bounce Back?

The price of Solana has been falling sharply since the double-top pattern was confirmed by a move below the signal line in the Relative Strength Index (RSI) back on January 26. As a result, the token is currently trading 29.3% from its January 19 all-time high.

However, SOL bounced back sharply yesterday after it flashed-crashed to its lowest levels since January 13. Trading volumes today have exceeded the average only halfway through the American trading session.

This positive performance has managed to keep SOL above the critical 200-day exponential moving average (EMA) line. That said, both the RSI and the MACD are neck-deep in negative territory and below their respective signal lines.

It would need some serious buying power to propel SOL back to its mid-January levels and Trump’s decision to impose tariffs and start a trade war may not help this cause. Moving forward, unless there’s a clear signal on any of these two oscillators that the trend has changed, the short-term outlook is still negative for SOL.

On the positive side, the long-term prospects of SOL continue to be promising considering how fast it is challenging Ethereum’s dominance of the smart contracts space.

Ethereum’s DeFi Applications are Facing a Growing Number of Competitors

Solana outperforms Ethereum in terms of scaling as the former can process a higher number of transactions at a much lower cost without the use of layer-two protocols.

Meanwhile, other decentralized smart contract platforms like Sui (SUI) have emerged lately to compete with both Solana and Ethereum as they are even more efficient.

In addition, layer-one decentralized protocols like Hyperliquid (HYPE) have also captured investors’ attention as they could become the norm in the DeFi space – protocols that do not rely on third-party blockchains to function.

What seems to be clear is that Ethereum’s long-standing reign could be coming to an end unless they perform significant upgrades that allow the network to deliver faster transaction processing speeds at lower gas costs.

Compared to Bitcoin (BTC), which is considered by many as digital gold, the demand for Ether (ETH) is determined primarily by its network activity. If its ecosystem shrinks, so will the value of its native asset.