USDC, the stablecoin now native to four blockchains, could soon be on eight to 10 more networks.It’d be the broadest expansion of the $25 billion stablecoin to date, potentially beating the eight blockchains that support Tether’s USDT, the market leader with a $63 billion grocery cap.
The U.S. dollar stablecoin USDC( USD Coin) is planning to further expand to 10 blockchains including Avalanche, Celo, Flow, Hedera, Kava, Nervos, Polkadot, Stacks, Tezos, and Tron.It wants to accelerate the increase in market share.
Since its inception in 2018, USDC has accelerated to catch up with USDT, the chairman in the stable money domain, with its compliant and transparent characteristics. At present, USDC has a circulation of 25.218 billion, ranking second among all stablecoins, and still far behind USDT, which has a circulation of 63.046 billion.
Although the latter still predominates the stablecoin market, with the opening of the US regulatory attitude, USDC is gaining more favorable conditions. On June 29, Randal K. Fed, Vice Chairman of Supervision, Federal Reserve In his speech, Quarles involved stablecoins as an innovation, believing that compared against CBDC( central bank digital currency ), they may be deployed faster and have fewer shortcomings.
Soon after, Compound Labs announced the establishment of a new company to support brand-new banks and universities to convert U.S. dollars into USDC and secure an annual interest rate of not less than 4% in Compound; Coinbase also launched USDC savings makes to support retail investors to deposit USDC Earn interest.
Compared with USDT, whose reservations are not very transparent, USDC has developed into a “first-in-a-month” party by virtue of its compliance. As it is issued and circulated on more orders, the “second” in the stable currency environment is expected to further narrow the divergence with the leader.
USDC lengthened liberate map
According to the data of Tokenview on July 1, the current USDC circulation is 25.13 billion, grading second among all stable silvers. The number one spot is USDT, which was created in 2014. With 64.14 billion in circulation, it firmly occupies the leading position of stable currency.
USDC, the stable currency with the second largest market share, is planning a mighty onslaught battle to further attack the “number one throne” currently occupied by USDT.
On June 30 th, according to the draft announcement of the USDC Management Center, it is expected that in the next few months, USDC will be available in the 10 Avalanche, Celo, Flow, Hedera, Kava, Nervos, Polkadot, Stacks, Tezos and Tron( TRON) Issued on the blockchain network.
This will be a large-scale “money printing” plan, which not only shows that the issuance of USDC is about to increase, but likewise means that the dissemination of the stable currency will be enhanced exponentially.
The TRON blockchain also confirmed that Centre will soon launch the TRON version of USDC. Previously, the TRON version of USDT has quickly become the first choice for user transfers with low-toned event costs. The daily transaction publication of the blockchain has also increased significantly due to the emergence of USDT. Today, USDC is issued in TRON, which is also regarded by the TRON community as another major development in this ecology.
As a fast-growing stablecoin, the most eye-catching label on USDC is compliance. Starting in october 2018, USDC was officially issued by the Centre alliance jointly established by Coinbase and Circle. Compared with USDT, which has less transparent USD modesties, USDC has a third-party audit company regularly publishing believable reports to prove that it has sufficient USD as a modest gold.
Since its issuance on Ethereum in 2018, the use of USDC has gradually increased. A typical example is that Maker, a well-known giving etiquette on the Ethereum chain, has accepted USDC as collateral and patronizes useds to mortgage USDC to give resources such as DAI. In the latter half of 2020, USDC expanded to be issued on blockchains such as Algorand, Stellar, and Solana, extending the circulation boundary.
Although USDT still reigns in the stablecoin marketplace, from the data point of view, USDC is growing rapidly.
In February of this year, the data released by Coin Metrics, an encrypted asset data analysis company, showed that the market value of USDT in the stable money market was taken into consideration little more than 75% for the first time. During the same period, the share of USDC’s market value has grown to a historical high-priced of 15 %. The two are ebb and flow, indicating the rapid increase of USDC.
In addition, Tokenview data demonstrate that on June 30, the total amount of deals on the USDT chain was 9.262 billion, while the total amount of transactions on the USDC chain on that day was 9.97 billion. The event work levels of the two major stablecoins are very close.
Judging from recent activities, USDC is obviously not satisfied with this. It is trying to expand the scope of issuance to challenge USDT’s conducting point. Currently, USDT is mainly issued on 4 blockchains, namely Omni, Ethereum, TRON and Solana. If USDC completes its expanded issuance program, it will run on as many as 14 blockchains. USDC’s multi-chain expansion may become a turning point in its rivalry with USDT.
The Fed makes environmental advantages to stablecoins
The crypto-asset market has years of development, and investors have long been accustomed to using USD stablecoins as the unit to exchange crypto-assets. As the earliest published stable money with the largest user base, USDT is widely adopted by major exchanges, and most trading duets are priced in USDT.
In terms of user trading habits, almost no other stable currency can compete with USDT. However, because USDC is more compliant and transparent, it is easier to be accepted by regulation in the long run. In particular, the current U.S. regulatory authorities have shown an open attitude towards stablecoins, and USDC, which is closer to the regulation, may become the “first-in-a-month” party.
In the early morning of June 29, Randal K. Fed, Vice Chairman of Supervision, the Federal Reserve. Quarles considered the US dollar stablecoin as a business innovation in an address. “We don’t need to be afraid of stablecoins.” He said that the Federal Reserve has always supported innovation by responsible private organizations, and the US dollar stablecoin may equip a encouraging persona for the US dollar in the world economy. To encourage the use of dollars. And compared against CBDC( Central Bank Digital Currency ), its deployment haste may be faster, with fewer disadvantages.
Randal K. Quarles stated that those who worry about stablecoins challenging monetary supremacy are baffling. He doesn’t think that stablecoins constitute a threat, exactly that they need to be administered in the way they are constructed and overseen. The Fed official even believes that improving the existing payment system and compounding it with the cross-border efficiency of stablecoins are able to make the issuance of CBDC redundant.
On the day the discussion was announced, Compound Labs announced the establishment of a “companies’ ‘ announced Compound Treasury. Harmonizing to reports, the company will cooperate with Fireblocks and Circle to allow brand-new banks and monetary engineering companies to convert U.S. dollars into USDC. These USDC tokens will be deposited into Compound at a guaranteed interest rate of four %.
From a broader perspective, Compound Treasury forms a contract where USD owners do not need to deposit their fund in the bank, but instead can alter their money into USDC to capture an interest rate of nothing less than 4% in the Compound agreement. It further increases the stable currency scenario, so that in addition to acting as the purchasing influence of encrypted assets, it also has the gathering of generating interest.
On June 30 th, Coinbase too announced the launching of USDC savings commodities on its official website. Retail investors can situate USDC to obtain an annualized 4% return. Coinbase stated that USDC is guaranteed by it.
After U.S. regulation substantiates the inventive importance of stablecoins, USDC is likely to receive attention from capital organizations and become a guaranteed interest-earning asset.
At this time, USDT, which holds a distance from supervision and is not transparent enough in its reserves, will naturally fall into the disadvantage of competitive conditions. USDT, which has long occupied the leading position, is facing more and more rapid pursuit by latecomers.
