Circle Injects $1B of USDC Liquidity into Solana Ecosystem

In the past week, Circle has injected nearly $1 billion in fresh liquidity into the Solana ecosystem.

Stablecoin issuer Circle continues to ramp up its presence in the Solana (SOL) ecosystem, injecting nearly $1 billion in fresh liquidity into the network over the past week.

According to data from SolanaScan, Circle minted $250 million of its USDC stablecoin on Solana on Wednesday. This latest mint brings the total USDC supply on Solana to around $2.35 billion.

Out of the $3.34 billion in stablecoins on Solana, USDC makes up the lion’s share, followed by Tether’s USDT with a circulating supply of $774.65 million on SOL’s network.

As the largest stablecoin offering on Solana, USDC is widely integrated into major SOL-based platforms, including the Phantom wallet and decentralized exchange Orca.

With Wednesday’s mint, the total amount of newly created USDC on Solana over the past seven days now stands at around $750 million. These transactions have effectively increased the USDC supply on the L1 blockchain by over 10%.

Minting new stablecoins on a blockchain usually indicates a demand for the token and a need for additional liquidity within the ecosystem. In this case, it’s possible that Circle minted these coins to fulfill requests from protocols and users.

The stablecoin issuer had previously minted $100 million USDC on Solana on Jan. 11, and another $400 million on Jan. 14.

Solana total value locked rises

Following the news of Circle’s latest USDC mint, Solana’s total value locked (TVL) rose by 0.4%, according to DeFiLlama.

While the increase is small, the addition of liquidity to SOL’s ecosystem could translate to higher prices for memecoins and Solana’s native token.

At the time of writing, SOL is trading at $24.3, up 1.6% over the past 24 hours and 32.4% in the last 30 days.

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