Circlestablecoin issuer USDCrecently announced a major initiative to replace its current version of the token. Starting June 8, Circle will deploy a new native version of the USDC specifically designed for the network. Arbitrum. This migration aims to improve transaction speed by exploiting this Layer2.
USDC soon on Arbitrum
In a recent thread on Twitter, Circle has unveiled plans to replace the current USDC model, a token based on Ethereum, by a new native version that will run directly on the network Arbitrum. This decision aims to establish the USDC as the official version recognized within the Arbitrum ecosystem.
This will be the official USDC version, recognized within the Arbitrum ecosystem, which will eventually replace the version currently in circulation.Circle Declaration
The switch to Arbitrum will enable USDC to take advantage of inter-chain transfer protocols (CCTP), facilitating exchanges between Ethereum and other supported blockchains.
CCTPs are protocols that manage the transfer of assets between different blockchains, unifying liquidity and avoiding withdrawal delays. This upgrade will improve the user experience and strengthen USDC’s competitiveness in the stablecoin market.
This will enable USDC to move natively to and from Ethereum (and other supported chains) in minutes (…) Say goodbye to withdrawal delays.Circle statement
As part of this transition, Circle will carry out a name change to distinguish the different versions of the USDC. The current USDC based on Ethereum will be renamed to “USDC.e”, while the new native version on Arbitrum will be referred to simply as “USDC”.
This new name is intended to reflect USDC’s transformation into an autonomous entity operating directly on the network. Arbitrum. At the same time, the original version will be listed as “bridged USDC”.
The state of the stablecoin market: a worrying situation!
The announcement of Circle comes at a time when the stablecoin market has been experiencing a downward trend in recent months. Several stablecoins have seen their market capitalization decline significantly.
The USDC, for example, has seen its value fall from $55 billion to $29 billion over the past year, according to data from CoinGecko. Only Tether (USDT) seems to be thriving, with a marketcap of $83 billion.
Since the recent USDC unpegged caused by the collapse of the Silicon Valley Bank, this stablecoin from Circle is experiencing a steady decline in marketcap and popularity. However, this new announcement could potentially change all that and reverse this unfavorable trend.
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