Circle Increases USDC Supply on Solana, Mints Additional 250M

Circle, the issuer of the USD Coin (USDC) stablecoin, has announced another significant minting event on the Solana blockchain. On Friday, January 31st, 2025, Circle minted an additional $250 million USDC, bringing the total USDC minted on Solana in January to a staggering $5.75 billion.

This substantial influx of liquidity follows a period of heightened activity on the Solana network, notably coinciding with the launch of memecoins associated with Donald Trump, namely $TRUMP and $MELANIA.

USDC Surges Forward Unlike its Counterpart

USDC dominates this month, increasing its market cap by 21% to $53.12 billion. According to CoinGecko data, this represents its best month since May 2021. USDT, the leading dollar-pegged stablecoin, only managed a 1% gain. USDC even surpassed Bitcoin’s respectable 10% growth.

The impact of this latest minting event is demonstrably significant for the Solana ecosystem. The increased supply of USDC has directly fueled a surge in trading volume.

IntoTheBlock suggests USDC’s success stems from its compliance with Europe’s MiCA regulations, while competitors like USDT face challenges. However, USDT’s market shows signs of recovery, and USDC’s growth simultaneously fuels positive momentum for the crypto market.

MiCA took effect for crypto-asset service providers on December 30, 2024. Since then, related entities have adapted their products and services to comply with the new regulations. Some exchanges have delisted cryptocurrencies that failed to meet MiCA’s requirements.

Notably, on January 24th this month, following a $250 million USDC mint, trading volume across various pairs experienced a marked upswing. The USDC/SOL trading pair, for instance, witnessed a remarkable 150% increase in trading volume within the first hour, reaching a peak of 25 million USDC traded per hour.

Tether USDT Faces Regulatory Challenges

Tether faces regulatory challenges. The MiCA framework in Europe will impose stricter controls on stablecoins. Several EU exchanges have already delisted USDT in anticipation of MiCA’s rollout, raising concerns about liquidity and market stability.

However, some experts believe MiCA will minimally impact Tether. They base this on USDT’s Asian trading volume. Crypto analyst Axel Bitblaze stated:

“80% of USDT’s trading volume comes from Asia, so the EU delisting won’t severely impact it. USDT’s market cap, down only 1.2%, proves this.”

Tether secured a major license in El Salvador, prompting its relocation there. This move reflects El Salvador’s pro-Bitcoin policy and strengthens Tether’s position in a digital-asset-friendly jurisdiction.

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