Circle’s USDC stablecoin is undergoing a notable supply contraction as its treasury continues to remove tokens from circulation. This trend reflects active supply management during a period of renewed interest in stablecoins across multiple blockchains. Recent on-chain data shows that Circle is adjusting issuance levels while activity on networks like Solana remains closely watched by traders and analysts. USDC Supply Tightens as Treasury Burns Accelerate On-chain tracking platform Whale Alert reported that the USDC Treasury recently destroyed more than 51 million tokens on the Solana blockchain. This action reduced the circulating supply at a time when stablecoin usage remains central to trading, liquidity, and decentralized finance operations. Consequently, the total USDC supply now stands near 76.26 billion tokens. Token burns permanently remove assets from circulation. Hence, they often signal a recalibration of supply rather than a decline in network relevance. Besides managing liquidity, such actions help align issuance with real demand across chains. Additionally, recent burns suggest Circle is actively balancing reserves as capital shifts between ecosystems. The latest Solana-based burn followed another 50 million USDC removal on Ethereum days earlier. Moreover, this sequence highlights a coordinated approach rather than a one-off event. Analysts often view repeated burns as a sign of disciplined treasury management, especially during volatile market conditions. Solana Market Structure Shows Early Strength Meanwhile, Solana’s native token continues to draw attention as stablecoin activity intersects with broader market momentum. According to CoinCodex data , SOL traded near $123, posting a modest daily gain while remaining lower on the weekly timeframe. However, analysts note that price behavior has shifted on shorter timeframes. According to curb.sol analysis, Solana broke a descending trendline on lower timeframes. This move confirmed a transition from consolidation into expansion. Price also reclaimed the $125 to $128 zone, which now acts as near-term support. Holding this range keeps bullish momentum intact. However, downside risk remains if price loses that support. Consequently, analysts continue to watch $122 and $118 as invalidation levels. On the upside, resistance stands near $135, followed by $145. A sustained break above $135 could open a path toward the $150 region. Analysts Watch Key Levels for Continuation Source: X Crypto Tony also highlighted the importance of reclaiming higher resistance. He noted that bulls must regain $128 to maintain control. Moreover, he expects a potential move toward $144 if momentum builds over coming weeks.
