NEAR Protocol’s integration of USDC allows users to natively send and receive the stablecoin, despite USDC’s recent market capitalization decline.
- NEAR Protocol integrates support for USDC, the second-largest stablecoin, allowing users to natively send and receive USDC on the NEAR blockchain.
- This integration provides developers and users with opportunities to leverage NEAR’s speed and scalability for USDC transactions and dApps.
- The “native” USDC on NEAR differs from USDC.e, rooted in Ethereum, and users are cautioned against sending USDC.e tokens to Circle accounts.
- USDC has faced a significant drop in market capitalization, prompting Circle to embark on a Web3 infrastructure campaign to strengthen its position and adapt to the evolving Web3 ecosystem.
NEAR Protocol has recently announced its support for USD Coin (USDC), the second-largest stablecoin by market capitalization. This move allows users to natively send and receive USDC for personal and corporate usage, expanding the range of blockchains supported by Circle, the issuer of USDC.
— NEAR Protocol (@NEARProtocol) September 14, 2023
USDC Stablecoin Expands on NEAR Protocol
NEAR Protocol, a high-performance programmable blockchain, has integrated USDC, allowing users to access “native” USDC from their Circle accounts and Circle APIs. This integration opens up new possibilities for developers, users, and investors, enabling them to leverage the speed and scalability of the NEAR blockchain to send value in USDC and integrate the stablecoin into NEAR-based decentralized applications (dApps).
It is worth noting that the newly introduced “native” USDC on NEAR Protocol is distinct from USDC.e, which is a bridged version of the token available on NEAR but rooted in the Ethereum blockchain. While the USDC.e contract is represented by the a0b86 contract on NEAR, the new asset comes in the form of a 17208 token. Users are advised not to send USDC.e tokens to Circle accounts, as it would result in the loss of access to funds.
USDC Faces Decrease in Market Cap
Although USDC has been expanding its support on different blockchains, it has faced a significant decline in market capitalization. The stablecoin suffered a blow in March 2023 when several crypto-friendly banks collapsed, causing uncertainty in the market. Since then, its circulating supply has failed to recover, unlike its competitor, USDT, which has reached an all-time high in market capitalization.
According to recent data, Circle stablecoin’s net supply has dropped from $55 billion in July 2022 to its current level of $26 billion, the lowest in over two years. This decline raises concerns about the stability of USDC and its ability to retain its market share.
Circle’s Web3 Infrastructure Campaign
In an effort to revitalize and strengthen its position, Circle has announced an ambitious Web3 infrastructure campaign. This campaign aims to explore new opportunities and expand Circle’s presence within the emerging Web3 ecosystem. The Circle team, led by Jeremy Allaire, is determined to navigate the challenges and position USDC for future growth.
To Sum it All Up….
NEAR Protocol’s support for USDC as its fourteenth natively supported blockchain opens up new avenues for users, developers, and investors. Despite the challenges faced by USDC in the current market, Circle remains dedicated to expanding its reach and establishing a strong foothold in the evolving Web3 landscape.