It is official: the stablecoin USDC will be implemented in its native version on the Sui blockchain. The news was announced by Circle itself, the issuer of USDC.
The blockchain of Sui welcomes the stablecoin USDT
Sui is a new crypto ecosystem based on blockchain that is growing significantly.
Although the launch took place only last year, the Sui chain has already risen to seventh place for TVL in DeFi, surpassing historic chains like Avalanche and Polygon.
With its billion dollars of TVL, it almost triples the TVL of Cronos, being nearly five times greater than that of Cardano.
Sui is a layer-1 blockchain based on Proof-of-Stake with fast and economical transactions. It uses a process called “transaction parallelization” which allows for the processing of transactions in parallel. It is a kind of horizontal scaling that in some ways resembles that of Iota, and it leads to a better organization of data in the consensus mechanism.
It even promises instant transactions and aims to become the main chain, for example, for GameFi.
Its goal is to reach billions of Web3 users, thanks to superior smart contracts.
The cryptocurrency SUI
SUI debuted on the crypto markets in May of last year, at about $1.4.
Until October 2023, the price had done nothing but fall, even dropping below $0.37.
Thanks, however, to the last bullrun, it started a strong recovery that in March of this year brought its price close to $2.2.
However, subsequently the price had fallen back below $0.6, particularly in August, but only to bounce back again especially after mid-September. Now it has risen to almost $2.
An interesting thing is that, unlike other young crypto, the trend of its market value does not seem purely speculative.
Of course, over the past twelve months, volatility has been sustained, but not exaggerated. Furthermore, the classic pump&dump scheme is not in sight.
The fact is that many consider this crypto project a serious one, and not purely speculative or based solely on narrative. In many ways, it resembles Solana, of which it could also become a direct competitor in the future.
The stablecoin USDC finally on Sui blockchain
Circle’s USDC is the world’s second largest stablecoin by market capitalization.
The fact that Circle has decided to issue it directly on Sui, without having to go through a bridge, means that the company is betting a lot on this blockchain.
It should be remembered that instead USDT by Tether does not yet exist natively on Sui, so at this moment the main stablecoin on Sui is indeed USDC.
In its official press release, Circle states that it is excited to announce the launch of native USDC on the Sui mainnet, so that it is accessible to developers and users without the need for bridging.
They also inform that Sui is the first blockchain based on the Move programming language to support native USDC, and that for now it includes over 85 apps.
They specify that in reality on Sui there already existed a “bridged” form of USDC, wUSDC, which is a non-native token representing USDC on Sui through Wormhole. However, wUSDC is not issued by Circle, and it is not compatible or redeemable with Circle Mint or with Circle APIs.
In this regard, a guide has been published to migrate from the bridged stablecoin wUSDC to native USDC.
The advantages
In a post on September 17 on the official Sui blog, it was stated that the integration of USDC will immediately enhance the utility and interoperability of this blockchain, both for users and developers.
In fact, it will add liquidity, thus simplifying transactions and improving the efficiency of the market of the entire ecosystem.
Moreover, in turn, the DeFi environment of Sui will provide a fundamental base for USDC to continue to grow.
In particular, the integration of native USDC on Sui will allow dApps on this chain to extend their reach and grow further, unlocking new opportunities in all vertical sectors, especially within DeFi itself.
Note that until November of last year, the TVL of Sui had not yet exceeded 100 million dollars, while by February of this year it had already surpassed 500 million.
The greatest growth, however, occurred in the last month, as the billion-dollar mark was reached and surpassed.
As for the market capitalization of USDC, in reality, it has decreased in the last two weeks, going from 36 to 35 billion dollars, but if its use were to spread within the Sui ecosystem, it is possible that it could rise again.
Source: https://en.cryptonomist.ch/2024/10/09/usdc-the-stablecoin-lands-on-the-sui-blockchain/