EddieJayonCrypto
4 Apr 25
The USDC Treasury created 250 million new USDC tokens on the Solana blockchain to increase liquidity. This follows the integration of Circle, the USDC issuer, with Solana. The surge in DeFi activity on Solana, making it the second-largest network by DEX volume, has driven the need for liquidity. The...
The USDC Treasury has injected $249,971,649 worth of USDC into the Solana blockchain by creating 250 million new USDC tokens, in response to the surge in DeFi activity on Solana. This has propelled Solana to become the second-largest network by DEX volume, with $6.28 billion in total value locked. The increase in USDC supply on Solana is driven by regulatory support and investor demand for stable assets amidst cryptocurrency market volatility. The move to issue more USDC follows the integration of Circle, the USDC issuer, with Solana, further solidifying USDC's presence on the blockchain. The surge in DeFi activity on Solana, along with the need for liquidity, has led to the significant USDC expansion on the Solana blockchain.
It is noteworthy that the growing supply of USDC on Solana is attributed to the ongoing surge in DeFi activity on the network, with remarkable trading volumes. Solana has emerged as the second-largest network by DEX volume, with $6.28 billion in total value locked in DeFi. The increasing USDC circulation, driven by demand from institutions and retail investors, indicates a rising need for liquidity. The decision to create more stablecoins is also a response to investor demand for refuge in stable assets amidst the high volatility of the cryptocurrency market. This growing supply of USDC is further boosted by regulatory shifts in the stablecoin market, particularly in Europe, underscoring the global interest in cryptocurrency within the broader crypto ecosystem.