Why has Solana stablecoin action boomed over the past year?

Core Insights - The stablecoin market has significantly benefited Solana, with its market capitalization growing from under $6 billion to $13.3 billion over the past year, making it the fastest-growing blockchain for stablecoins [1] - As of December, the market cap of stablecoins on Solana reached over $16 billion, indicating strong growth compared to other blockchains like Ethereum and Tron, which saw increases of 43% and 40% respectively [2] - Major financial institutions and fintech companies are increasingly interested in Solana, which is becoming a leading platform for stablecoin transactions due to its affordability and speed [3][4] Market Dynamics - The growth of stablecoins on Solana positions it as a potential leader in fast and low-cost stablecoin payments, with expectations of increased usage driven by crypto trading applications [4] - The introduction of regulatory frameworks, such as the GENIUS Act, has heightened interest in stablecoin issuance, with many traditional finance players looking to Solana for their stablecoin solutions [5] - Notable companies like PayPal, Western Union, and Visa are actively engaging with Solana for stablecoin initiatives, indicating a trend towards mainstream adoption of stablecoins on this blockchain [6]