Solana News Update: Solana’s Fast Network Draws $1.5 Billion in Stablecoin Growth as USDC and USDT See Significant Increases

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Treasury has broadened its operations on the blockchain, issuing an extra $500 million worth of USDC tokens, . This action is part of a wider movement among stablecoin providers who are taking advantage of Solana’s rapid and affordable network to enhance liquidity for decentralized finance (DeFi) and other blockchain-based services. The new tokens were minted by , the organization responsible for USDC, in using Solana for scalable digital asset transactions.

Choosing to mint USDC on Solana takes advantage of the blockchain’s distinct strengths. Capable of handling up to 4,000 transactions per second (TPS) with average fees around $0.002, Solana has , which processes about 30 TPS and typically charges higher fees. Circle’s decision signals a strategic confidence in Solana’s ability to process high transaction volumes smoothly, that support trading and lending within DeFi platforms. Recent figures show Solana’s network boasts 2.4 million active addresses and 83 million transactions, as a high-capacity alternative to .

This update comes amid a significant rise in stablecoin issuance across leading blockchains.

, which manages USDT, in stablecoins on Ethereum, indicating a similar effort to increase liquidity on the more established but slower network. Nevertheless, Solana’s lower transaction costs and quicker processing times make it especially appealing to individual users and developers looking to launch applications without delays, . For example, USDC on Solana is frequently used in NFT trading and gaming platforms, are essential.

The effects of these new token issuances go beyond simply adding liquidity. By growing USDC’s presence on Solana, Circle appears to be aiming to benefit from the blockchain’s swift adoption. Solana’s ecosystem has experienced significant expansion, with the introduction of institutional-grade offerings like the first Solana Staking ETF and greater involvement from major financial institutions,

. At the same time, Ethereum is concentrating on upgrades such as the Fusaka and Glamsterdam forks— and draw more institutional investors—showing the ongoing competition between the two platforms.

Experts note that the combined $1.5 billion in stablecoins issued by Tether and Circle this week

for stablecoin-backed assets in both centralized and decentralized finance. This momentum may build as institutions look to protect themselves from crypto market volatility and enable smooth transactions across different blockchains. Still, there are hurdles to overcome, such as regulatory oversight of stablecoin reserves and the challenge of creating interoperability solutions to connect Ethereum and Solana, .