In the past week, Circle has injected nearly $1 billion in fresh liquidity into the Solana ecosystem.
Stablecoin issuer Circle minted $250 million of its USDC token via its treasury wallet on Solana (SOL). As of this writing, USDC is the largest stablecoin offering on the SOL ecosystem. Circle’s dollar-pegged crypto comprises $2.35 billion out of $3.34 billion of stablecoins on Solana. Only Tether’s USDT, with its $774.65 million supply on SOL’s network, comes close.
USDC has established itself as the unmatched stablecoin leader on Solana, with integrations on leading SOL-based platforms like the Phantom wallet.
You might also like: PayPal’s PYUSD market cap hits $500m after Solana expansion
Circle’s Wednesday mint on Solana brought the number of newly created USDC coins on SOL to around $750 million in seven days. The transactions effectively increased the USDC supply on the major L1 blockchain by over 10%.
Minting new stablecoins on a blockchain usually signals more demand for the token and a need for additional liquidity within the ecosystem. In other words, it’s possible that the issuer minted these coins to match requests from protocols and users.
Following the news, Solana’s total value locked (TVL) rose by 0.4%. While the increase is small, the added liquidity to SOL’s ecosystem could translate to higher prices for memecoins and Solana’s native token.
Read more: Solana co-founder proposes memecoin dev grants
