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Could USDC’s demand be key to keeping Solana around its new ATH

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Solana has grown by a lot of late, both as an asset and as a blockchain. The network created ripples in the DeFi space when it entered the NFT market and continues to bring considerable inflows.

However, its next big thing is on the way, coming in the next 6 days. And, if it works as per expectations, it could trigger more ripples in the crypto-space.

Solana marks a new all-time high

Yesterday, after a week-long rally of 34.5%, Solana registered a new ATH. In fact, during yesterday’s trading, it went on to cross the $220-mark.

However, despite the fact that new highs have been registered on the charts, the same may have proven to be even more conclusive than is evident. Especially since at press time, there seemed to be some signs of reversal from here onwards.

Solana’s price action | Source: TradingView – AMBCrypto

What’s more, thanks to the aforementioned price hike, SOL surpassed XRP in terms of market capitalization. In fact, it is currently the sixth-largest cryptocurrency in the world.

The last 3 months of Solana’s bullishness have led to the asset now holding 2.38% dominance in the crypto-market. Less than a month ago, this figure was just 0.49%, lower than the figures recorded by alts like DOGE too.

Solana’s dominance | Source: TradingView – AMBCrypto

However, bullishness aside, at the time of this report, the altcoin had entered price discovery phase. With SOL now definitely overbought on the charts, maybe, we could finally see some price stabilization.

Alas, that is not what the focus is on right now.

Solana’s next big thing?

Yesterday, it was revealed that Solana will be getting its first audited Automated Market Maker protocol and Liquidity Pools. Aldrin Exchange, a DEX on the Solana blockchain, will be launching the AMM in 6 days. This will be audited by the same company that audited Binance as well. And, the liquidity pools will be supporting the SOL/USDC and RIN pairs.

Over the last few months, USDC has seen significant growth, both in terms of adoption and circulation. As the second-largest stablecoin, most exchanges launching token pairs include USDC, along with USDT.

The most recent example is of Klever Exchange, a CEX that added MATIC with both Tether and USDC. The stablecoin was also recently launched on the public ledger Hedera.

Thus pairing SOL with USDC could see a barrage of investment since SOL itself is in high demand at the moment.

USDC’s supply increasing by 733.33% over the year is also evidence of the rising demand for this stablecoin.

USDC circulation growth | Source: TradingView – AMBCrypto

What impact would it have on Solana, however? Well, that is something that can only be known in a week from now.

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Aaryamann is a full-time journalist at AMBCrypto. He is a recent journalism graduate, currently investing his time in the crypto-space. He has a keen interest in DeFi, the ever-expanding possibilities of blockchain technology, as well as the political impact they would have.