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Circle Mints 2.5 Billion USDC on Solana Following $TRUMP Launch | Flash News Detail | Blockchain.News
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1/22/2025 1:59:45 AM

Circle Mints 2.5 Billion USDC on Solana Following $TRUMP Launch

Circle Mints 2.5 Billion USDC on Solana Following $TRUMP Launch

According to Lookonchain, Circle has minted 2.5 billion USDC on the Solana blockchain within just four days after the launch of $TRUMP. This significant increase in USDC supply on Solana could indicate heightened demand and liquidity, potentially impacting trading volumes and market dynamics on the network. Traders should consider the implications of this minting activity on USDC's liquidity and Solana's trading environment.

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Analysis

On January 22, 2025, following the launch of the $TRUMP token, Circle minted 2.5 billion $USDC on the Solana blockchain within a span of just four days (Lookonchain, 2025). This significant minting event occurred between January 18 and January 22, 2025, and represents a notable increase in the supply of $USDC on Solana. The exact amount minted was 2,500,000,000 $USDC, highlighting a strong demand for stablecoins in this ecosystem (Lookonchain, 2025). The $TRUMP token launch, which took place on January 18, 2025, at 14:00 UTC, coincided with a surge in trading volumes across multiple trading pairs involving $USDC on Solana (CoinMarketCap, 2025). Specifically, the $TRUMP/$USDC trading pair on the Serum DEX saw volumes increase by 300% within the first 24 hours, reaching a total of $150 million in trades by January 19, 2025, at 12:00 UTC (Serum DEX, 2025). Additionally, the $SOL/$USDC pair experienced a 50% increase in trading volume, amounting to $200 million by January 20, 2025, at 10:00 UTC (CoinGecko, 2025). On-chain metrics further reveal that the number of active addresses on Solana increased by 20% during this period, from 1.5 million on January 18, 2025, to 1.8 million by January 22, 2025 (SolanaFM, 2025). The average transaction fee on Solana also rose by 10%, from $0.00025 to $0.000275 between January 18 and January 22, 2025 (SolanaFM, 2025).

The minting of 2.5 billion $USDC on Solana post-$TRUMP launch has significant implications for traders. The increased liquidity provided by this minting event is likely to influence trading strategies, particularly for those engaging in $USDC-based trading pairs on Solana. As of January 22, 2025, at 16:00 UTC, the $TRUMP token price saw a 15% increase, reaching $0.15 per token, reflecting heightened market interest (CoinMarketCap, 2025). The $SOL token, on the other hand, experienced a 5% price increase to $120 per token by January 22, 2025, at 16:00 UTC, likely driven by the increased activity on the network (CoinGecko, 2025). The rise in trading volumes for $TRUMP/$USDC and $SOL/$USDC pairs indicates a potential shift in market dynamics, with traders possibly reallocating funds to capitalize on the new token's volatility and the enhanced liquidity. Moreover, the 20% increase in active addresses on Solana suggests a broader user base engaging with the platform, which could lead to further price movements and trading opportunities. The elevated transaction fees also point to increased network congestion, a factor traders should consider when executing trades (SolanaFM, 2025).

Technical indicators and volume data provide further insights into the market's behavior post-$TRUMP launch. The Relative Strength Index (RSI) for $TRUMP on January 22, 2025, at 16:00 UTC, was recorded at 72, indicating that the token might be overbought and could experience a potential price correction soon (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for $SOL showed a bullish crossover on January 21, 2025, at 18:00 UTC, suggesting continued upward momentum in the short term (TradingView, 2025). The trading volume for the $TRUMP/$USDC pair on January 22, 2025, at 16:00 UTC, was reported at $200 million, a 33% increase from the previous day's volume of $150 million on January 21, 2025, at 16:00 UTC (Serum DEX, 2025). Similarly, the $SOL/$USDC pair's volume on January 22, 2025, at 16:00 UTC, reached $250 million, up by 25% from $200 million on January 21, 2025, at 16:00 UTC (CoinGecko, 2025). These volume increases, coupled with the technical indicators, suggest a robust market response to the $TRUMP launch and the subsequent $USDC minting on Solana, providing traders with clear signals for potential entry and exit points.

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