How Circle is Driving Stablecoin Liquidity on Solana

Summary:

-Stablecoin issuer Circle is introducing its Cross-Chain Transmission Protocol (CCTP) to enhance the liquidity of stablecoins on Solana.

-Solana executives emphasized the potential of CCTP to streamline the transfer of stablecoins from various networks across the network.

– Solana’s rise as a stablecoin trading platform comes as USDC transfers continue to soar.

Stablecoin issuer Circle has enhanced liquidity on Solana with its upcoming Cross-Chain Transfer Protocol (CCTP).

The protocol enables users to seamlessly transfer USDC across supported blockchain networks by destroying and minting stablecoins.CCTP operates on seven networks: Ether, Avalanche, Base, Noble, Arbitrum, OP Mainnet and Polygon PoS.Bitcoin Miner

CCTP Will Enhance the Liquidity of Solana’s Stablecoin

Circle has announced a pre-minting address that will allow the CCTP to mint USDC on Solana prior to its official launch on March 26th.This strategic move allows Circle to build and maintain USDC balances on Solana. However, pre-minted tokens will need to wait for formal authorization from Circle before they can be included in the circulating supply.

Austin Federa, Head of Strategy at Solana, noted that the CCTP simplifies the transfer of USDC stablecoins from various networks to Solana. He also emphasized the protocol’s potential to spark innovation, such as on-chain wage payments and providing accessibility to Solana for users from different networks.

Meanwhile, Solana co-founder Anatoly Yakovenko expressed similar sentiments, adding that the CCTP can act as a seamless bridge for real-world assets (RWAs).ETC Miner

Yakovenko said, “CCTP is what I imagine a frictionless RWA bridge to be.Circle will continue to roll out amazing technology that improves user experience and security.”

USDC Market Capitalization Growth｜Source: tradingView

USDC, the second largest stablecoin by market capitalization, saw its supply increase by 22% to approximately $30 billion. This growth is indicative of positive market sentiment driving the prices of Bitcoin and Ether to record highs.

Circle’s move to enhance stablecoin liquidity on Solana fits with the network’s rise as a stablecoin trading platform. As of March 8, USDC transfers on Solana surpassed USDT on the TRON and Ether blockchains by more than $4 billion each.

Meanwhile, market observers attributed the laudable milestone to Solana’s active DeFi space. On-chain data from DeFiLlama shows that the total value of assets locked up on the network (TVL) now stands at $3.165 billion. This figure is double the $1.4 billion recorded in January.

These developments have also spawned the growth of Solana’s local token, SOL, which has recently reached $150, its highest level in two years, thanks to recent developments, despite the fact that Solana was once associated with the collapsed FTX and network outage issues.