Circle Expands Beyond Ethereum With Support For USDC On Polygon

Circle, increasing past the Ethereum mainnet for the primary time, is launching help for its USDC stablecoin on Polygon’s proof-of-stake (PoS) chain, the corporate mentioned right this moment.

Polygon builds Layer 2 scaling solutions for Ethereum. Its PoS chain presently represents a complete worth locked (TVL) of $2.43B.

The transfer is designed to allow Polygon-based companies and builders to lower settlement occasions and decrease prices by accessing USDC straight utilizing Circle Account. In a press release, Circle mentioned account customers will be capable to convert fiat forex to Polygon USDC in simply seconds. 

The mixing will make it simpler to manually bridge USDC from Ethereum to Polygon.

Jeremy Allaire, CEO and Co-founder of Circle, described Polygon as “a lovely entry level for companies and builders to construct in a longtime and liquid ecosystem with sooner settlement occasions and lowered prices.”

Stablecoin Contagion

The information comes as confidence in decentralized stablecoins took a hit amid the collapse of Terra Classic’s algorithmic stablecoin, UST.

USDC is among the many only a few stablecoins to have exhibited development amid the fallout from UST. Whereas its market cap receded 9.4% from the beginning of March via April, its capitalization rapidly rebounded in early Might because the panic surrounding algorithmic steady tokens ignited.

USDC’s capitalization bounced on Might 11 and rallied to new all-time highs on the finish of the month. It posted an all-time excessive of $54.1B on June 6.

Tether Redemptions

Tether (USDT), the main centralized stablecoin and USD Coin’s major rival, suffered a rush of redemptions final month as persistent considerations relating to its backing prompted holders to de-risk. 

In three weeks, USDT’s market cap tumbled 13% from an all-time excessive of $83.2B on Might 7 to lower than $72.5B. Tether briefly depegged as holders raced to dump USDT, with Tether’s price dropping down to $0.95 on Might 12.

MakerDAO’s long-standing decentralized stablecoin, DAI, additionally benefited amid the turmoil within the stablecoin markets. Whereas DAI’s capitalization topped out at $10.4B in February, it rebounded 8% since establishing a ground of $6.4B in early Might.