On April 3rd, the USDC Treasury, in its regular attempt to boost the supply of USDC in circulation, created 250 million fresh USDC tokens on the Solana blockchain, according to data provided by blockchain tracker Whale Alert.
The token creation, which happened about three hours before press time, saw $249,971,649 worth of USDC injected into the Solana blockchain as investors seek more liquidity on the seventh-largest cryptocurrency by market capitalization.
The massive USDC mint on Solana comes less than a month after the network hit a major USDC milestone following its integration with Circle, the USDC issuer—a strategy aimed at increasing USDC’s footprint on the blockchain.
It is noteworthy that the increasing supply of USDC on Solana is attributable to the ongoing surge in DeFi activity on the network, including remarkable trading volumes. Data from DefiLlama shows that Solana has emerged as the second-largest network by DEX volume, accounting for up to $6.28 billion in total value locked in DeFi.
With 250 million USDC entering circulation, there are indications that the need for liquidity is on the rise, traceable to demand from institutions and retail investors.
The consistent move by the Treasury to continue issuing the Circle-backed stablecoin, USDC, comes as no surprise, as recent regulatory support has sparked global interest in the cryptocurrency within the broader crypto ecosystem. Notably, USDC’s growing supply has been boosted by regulatory shifts in the stablecoin market, particularly in Europe.
The Treasury’s decision to create more stablecoins also appears to be a response to investor demand for refuge in stable assets—especially in times like this, when the crypto market is highly volatile and major cryptocurrencies continue to plunge significantly.
