Stablecoins have been flowing out of the Solana network after initially seeing a peak in minting. Solana gained over $12 billion in stablecoins, primarily from USDC, but is now experiencing a decrease in supply. Ethereum, on the other hand, added $1.1 billion in stablecoins in the past week. The SOL-based ecosystem has seen a general outflow of value, with the most active DEX, Raydium, losing 40% of its liquidity in the past 30 days. Meteora, which offers USDC-based trading pairs, saw a record increase in trading activity and relies on the TRUMP-USDC pair for a significant portion of its liquidity. Other DeFi protocols on Solana, such as Kamino Lend and Solend, have also experienced mixed fortunes. The slowing liquidity is affecting the entire ecosystem, and the loss of trust could lead to further outflows. The Solana network faces challenges as the value is extracted by meme token trading, bots, MEV operators, and insider traders. The availability of USDC in the ecosystem allows traders to retain their earnings, while SOL remains relatively unstable.



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