This technology strengthens Stablecoin liquidity on Solana (SOL).

Stablecoin issuer Circle is boosting liquidity on Solana through the next Cross-Chain Transfer Protocol (CCTP) launch on the network.

This protocol allows users to transfer USDC across supported blockchain networks by burning and withdrawing the stablecoin. CCTP works on seven networks: Ethereum, Avalanche, Base, Noble, Arbitrum, OP Mainnet and Polygon PoS.

CCTP to increase the liquidity of Solana Stablecoin

Circle March 26 showed a pre-mint address allowing the CCTP USDC to run on Solana. This strategic move allows Circle to establish and maintain USDC balances on Solana. However, Pre-Designed Tokens await inclusion in the circulation offering pending Circle's formal approval.

According to Austin Federa, Solana's head of strategy, CCTP will facilitate transfers of the USDC stablecoin from various networks to Solana. The protocol also highlighted the potential for innovations such as on-chain payments and the accessibility of Solana to users from different networks.

Meanwhile, Solana founder Anatoly Yakovenko echoed similar sentiments, adding that CCTP could serve as a seamless bridge to frictionless Real World Assets (RWA).

“I think CCTP is like a frictionless RWA bridge. Circle continues to deliver amazing technology that improves user experience and security,” said Yakovenko.

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USDC, the second-largest stablecoin by market capitalization, saw a 22 percent increase in supply to around $30 billion. This increase reflects the positive market sentiment that has driven Bitcoin and Ethereum prices to record highs.

Circle's initiative to improve stablecoin exchange on Solana is the emergence of the network as a power source for stablecoin transactions. In the year As of March 8, Solana's US dollar transaction volume surpassed that of USDT on the TRON and Ethereum blockchains by $4 billion each.

Meanwhile, market watchers attributed this impressive milestone to Solana's active DeFi sector. On-chain data shows that the total value (TVL) of assets locked on the network is currently $3.165 billion. That's more than double the $1.4 billion recorded in January.

Read More: Solana (SOL) Price Prediction 2024/2025/2030

These developments have boosted the Solana-native SOL token, which hit a two-year high of $150 in the wake of recent FTX and network outage issues.