Circle, the company behind one of the leading stablecoins, minted $250 million worth of USDC today, on February 7. Issued on Solana, the amount represents a US dollar inflow into the crypto ecosystem, hinting the bull market is back.
As detailed by Whale Alert (@whale_alert, on X), the mint occurred on Solana, costing 0.00031 SOL in fees. The receiver address was the pre-labeled USDC Treasury account, which currently has a $474.41 million balance, as per SolanaFM.
Interestingly, over $10 billion of the $55 billion capitalization of USDC was minted in the last 30 days. This represents a significant share of the available tokens, according to usdc.cool, who called the data “INCREDIBLE.”
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Is the bull market back?
When stablecoin issuers, like Circle, mint new tokens, it usually means that there is an inflow of fresh US dollar into the ecosystem, with investors depositing USD to Circle (or other issuer) in exchange for USDC (or other stablecoin).
Events of significant inflows – as observed in the past 30 days, with one-fifth of all tokens being issued, or the $250 million of today – could suggest that there is a renewed interest from highly-capitalized investors in the ecosystem, which could translate into a bull rally, as these stablecoins are used to buy other cryptocurrencies.
Notably, some analysts like BITCOINLFG believe “alt season is about to start.” Finbold has reported other analysts sharing a similar belief, eyeing the Bitcoin (BTC) dominance index and altcoins’ capitalization.
“Altcoins have broken out from the daily bullish pennant! Running straight into all-time high resistance here — once that breaks, the sky is the limit. Strap in boys, we’re in for one heck of a ride.”
– Jelle
These bullish expectations are also aligned with recent news that hint at Donald Trump considering adding US-based altcoins to the United States Treasury reserves, instead of only Bitcoin, as many enthusiasts first thought. On that note, Michael Saylor was one of these investors who previously held a “BTC-maximalist” position, now admitting being wrong.
If an altseason really happens, altcoin investors are expected to see far higher gains than Bitcoin holders in the following months. However, many altcoins lack solid fundamentals and can usually expose investors to higher risks; requiring caution while opening positions.
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