The second-most popular US dollar-pegged stablecoin, USDC, found a new home on the Algorand blockchain
The USDC stablecoin officially expands to the Algorand Blockchain. This means that the stablecoin developed by Center – a partner between exchange Coinbase and payments company Circle – has finally reduced its dependence on Ethereum, another major blockchain network containing USDC, since announcing its intentions relocated in June.
Today USDC officially expanded to its second blockchain, Algorand. This represents a significant improvement to USDC’s scalability and utility, making it a significantly more useful protocol for solving real-world financial problems. https://t.co/G8X7cYbAHY
— Coinbase (@coinbase) September 9, 2020
USDC is expanding onto Algorand
More than $ 1.8 billion USDC is in circulation today, with almost a billion dollars mined in just the past three months. According to Coin Metrics, the value of USDC transferred each week hit a new record in the past week due to the rise of DeFi, or decentralized finance – unsupervised financial services.
Adjusted Value Transfer of USDC | Source: Coin Metrics
The move to Algorand happened because the Center, the USDC maker, wanted to reduce the coin’s dependence on Ethereum. This is because Ethereum is slow, explosive, and extremely expensive to use.
Representatives from the Center shared:
“There is a tremendous need for blockchain infrastructure that can scale to support significantly higher transaction throughput and lower fees.”
With Algorand, this Blockchain supports over 1,000 transactions per second (much higher than Ethereum’s 15), and transaction fees are only a fraction of a cent (compared to Ethereum’s high average transaction costs, which peaked last week. about $ 14).
Alesia Haas, Chief Financial Officer at Coinbase, stated:
“Expanding USDC from Ethereum to additional blockchains like Algorand will ensure USDC has the flexibility to support everything from emerging DeFi projects to large scale financial institutions.”
To be clear, USDC is not leaving Ethereum, only expanding into Algorand. The new blockchain network is the poster child of Center’s “Multichain USDC Framework,” announced in June, that shows its effort to get USDC onto new blockchains, into the hands of more developers and institutional investors.
Silvio Micali, founder of Algorand, Inc, stated:
“This is a defining milestone for frictionless mainstream payments as well as sophisticated financial applications. This launch brings together the convenience of USDC and an advanced protocol for global financial exchange in which Layer-1 smart contracts are as simple and secure as regular payments.”
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