Circle issued $750 million worth of USDC on the Solana blockchain in just one day. According to CoinTelegraph on the 14th (local time), this large-scale issuance occurred amid a rapidly expanding stablecoin liquidity based on Solana's fast processing speed and low fees.
Circle is analyzed to have expanded its issuance scale as transaction volume and capital flow within the Solana ecosystem increased recently. As of the end of the second quarter, USDC circulation was 61.3 billion dollars, a 90% increase from the previous year, and as of the 10th, it reached 65.2 billion dollars, a 6.4% increase.
Solana is positioning itself as a network advantageous for operating stablecoin-based financial services with its high throughput and low fees.
Meanwhile, Circle announced plans to sell 10 million common shares on the same day. Among these, 2 million Class A common shares will be issued by the company, and 8 million shares will be sold by existing shareholders. This decision was made in a situation where the stock price has surged 425% after the IPO, and the stock price dropped more than 4% in the pre-market immediately after the announcement.
Circle's first quarterly results after listing exceeded market expectations. Sales were $658 million, showing strong performance, and CEO Jeremy Allaire emphasized that "USDC has been the fastest-growing major stablecoin over the past year". A significant portion of Circle's revenue comes from interest income generated by short-term US Treasury bonds that back USDC.
