How these plans might be instrumental to USDC’s near-term growth

  • 05 November 2022, Saturday, 00:35
How these plans might be instrumental to USDC’s near-term growth
Source: Pixabay

According to a tweet shared on the 3rd of November, Circle’s (The issuer of the stablecoin USDC) cross-chain transfer protocol will go live on Ethereum and Avalanche by the end of this year. The cross-chain transfer protocol will effectively teleport USDC from one ecosystem to another, maximizing capital efficiency and streamlining the user experience.

This move would help USDC grow, especially since the stablecoin is currently ranked number two in terms of market cap in the stablecoin sphere.

At press time, USDC was showing some signs of improvement, with the number of active addresses growing over the month. In the last 30 days, the number of active addresses hiked by 11%, according to the data provided by Messari.

Source: Messari

Alongside the growing number of active addresses, the number of USDC that was being minted per month declined too. As can be seen from the chart below, the USDC that was being minted over the past few months has fallen significantly.

Source: Dune Analytics

Despite the decline in the number of USDC being minted, however, it still managed to rank number one in terms of trading volume. In fact, USDC accounted for 56.1% of the overall stablecoin transfer volume.

Source: Dune Analytics

USDC also registered some improvements on various L2 chains. In terms of network growth, USDC managed to improve on both Arbitrum (red) and Optimism (yellow).

A hike in network growth indicates that the amount of new addresses that transferred USDC for the first time had increased. This seemed to be a sign that there may be interest being generated in USDC by new addresses on the L2 chains.

Source: Santiment

Alongside some growth on the L2 chains, USDC’s mean transaction volume also registered a hike. According to Glassnode, USDC’s median transaction volume hit a 1-month high on 3 November.

Coupled with that, the overall number of new addresses also noted some appreciation, Glassnode revealed.

Source: Glassnode

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