Over the past week, Circle has injected nearly $1 billion of new liquidity into the Solana ecosystem.
Stablecoin Source Circle Coined $250 million USDC via its Solana (SOL) treasury wallet. As of this writing, USDC is the largest stablecoin offered on the SOL ecosystem. The dollar-pegged cryptocurrency Circle comprises $2.35 billion of the $3.34 billion in stablecoins on Solana. Only Tether’s USDT, with a supply of $774.65 million on the SOL network, comes close.
USDC has established itself as the leading stablecoin on Solana, with integrations with leading SOL-based platforms like Phantom Wallet.
Circle’s release of Solana on Wednesday increased the number of newly created USDC on SOL to around $750 million in seven days. The transactions effectively increased the supply of USDC on the main L1 blockchain by more than 10%.
The minting of new stablecoins on the blockchain usually indicates increased demand for the token and the need for additional liquidity within the ecosystem. In other words, the issuer is likely minting these coins to match the demands of protocols and users.
Following this news, Solana’s total value locked (TVL) increased by 0.4%. Although the increase is small, the added liquidity to the Solana ecosystem could translate into higher prices for memecoins and Solana’s native token.