Five blockchain ecosystems plan to adopt the USD Coin next year. The plan was revealed when the stablecoin issuer, Circle, disclosed this in an official statement. Meanwhile, the information was publicized at the meeting of the web3 developer tagged Converge22.
The Proposed New Ecosystems
The fintech company announced at a San Francisco meeting that the number of ecosystems, which supports USDC stablecoin, will rise to thirteen as the digital assets set to go live on five additional blockchains.
Meanwhile, NEAR, Polkadot, Optimism, and Arbitrum blockchains will all start supporting the stablecoin before the end of this year. Cosmos users, however, would have access to the digital asset in the early part of next year.
The Vice President (Product) of the company, Joao Reginatto, explained that the development would give both blockchain developers and users, who prefer working on the digital asset, free access to decent liquidity and interoperable experiences, as the coin will be available in thirteen ecosystems.
Further, the Vice President revealed that the availability of the digital dollar on multiple blockchains would expose trading platforms, institutions, and other users to incredible innovations and more accessible and secured digital assets.
Also, they will access efficient inter-chain transactions through the integration of cross-chain transfer protocol in the networks. The protocol will also assist the creation of wallets, decentralized applications, and many other mechanisms that will enhance USDC performances on various networks.
The New Competition
Recently, the leading digital assets trading platform, Binance, announced the removal of the USDC from its exchange. Likewise, an Indian-based trading platform, WazirX, delisted the stablecoin from its platform. They also removed TUSD and USDP stablecoins.
However, Binance disclosed the balances of the removed stablecoins would be automatically converted to a newly issued stablecoin named BUSD.
These recent developments have troubled USDT investors. It also caused a 10% dip in the circulation volume of the coin. The pressures on the stablecoin will, however, reduce with the expansion of blockchains enabling USDC. Also, it will re-ignite investors’ confidence in the token.
Although the USDC market capitalization dipped from $55B to $49B, the digital asset value remains at par with the US Dollar. The coin retains the backing of short-dated United States treasuries and cash.
According to Etherscan, around 3.3 billion units of USD Coins are held by about 1.5 million investors. Also, Circle reveals that the total value of the token in circulation is about $49B. The coin is available in over 190 nations.
On CoinMarketCap, the token’s market cap is $48.8B, and it USDT traded about $4.4B in the last 24 hours.