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Solana (SOL) might be gearing up for a massive rally as broader cryptocurrency events signal investors are preparing capital for trading. As highlighted by renowned analyst Ted Pillows, stablecoin giant Circle has minted $750 million worth of USDC stablecoin in a liquidity boost.
Stablecoin minting surges on Solana
This development has led to speculation about the direction of Solana on the market. Pillows opine that Solana could rise soon given the massive volume of USDC minted by the stablecoin giant.
Generally, stablecoin minting helps build up liquidity that can drive the prices of assets up in the mid- to long term. It signals that there might be a surge in demand for the stablecoin by investors.
Interestingly, besides the $750 million USDC minted, data from Lookonchain reveals that Tether (USDT) and Circle combined have minted $17.25 billion worth of the stablecoin since the crypto market took a dive in October.
The recent post-crash minting is a signal that there is enough liquidity for trading and institutional accumulation by investors.
It is worth mentioning that Solana, which was on a price slip, has registered a reversal. The coin climbed from a low of $136.21 to a high of $144.47 within the last 24 hours. As of press time, Solana is changing hands at $141.31, which represents 3.35% within the same period.
Solana’s trading volume is beginning to pick up as there has been a 9.86% increase to $4.94 billion. This suggests that investors are utilizing the stablecoin liquidity to acquire Solana in the market space.
SOL whale movements hint at strategic asset rotation
Meanwhile, a massive transfer of over $1 billion SOL, which took place on Sept. 25, had sparked speculation as to the motive of the transaction. The series of transfers by ecosystem whales generated profit-taking rumors.
In the light of the current market outlook, it is likely that these whales were redistributing the assets in their wallets.
It will be interesting to see how Solana recovers from its recent 49% slip in market value. Bullish traders remain keen on SOL reclaiming the $200 target, a level not achieved since Oct. 28.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team