USDC stablecoin now supported on super-fast Solana blockchain

The super-fast Solana Blockchain has now extended its support to the Circle-backed multi-billion dollar stablecoin USDC.

By · Oct 22, 2020 . 6min read

USDC stablecoin on Solana latest news

USDC by Circle has announced that it has added the multi-billion dollar market cap stablecoin on Solana blockchain. This effectively makes it the fourth chain that the stablecoin is available on after Ethereum, Algorand and Stellar.

The stablecoin has continued to proliferate since it was established in 2018. It overtook its well-established competitor, Tether, in growth pace months back according to a research report by Coinmetrics. And with heightened demand, USDC’s Solana blockchain support should help drive its goal of adoption even further.

Many are beginning to call Solana “Ethereum killer”. It’s an ultra-fast blockchain network capable of supporting up to 50,000 transactions per second. Moreso, it does this at a meagre fraction of transactions costs compared to the likes of Ethereum where transactions can shoot up to $50 for just $25 transaction.

Precisely, DeFi users deposit stablecoins like USDC in protocols to earn yield and perform intended transactions. This has fuelled the sudden spike in transactions we saw over the last couple of months while the DeFi persisted. Jeremy Allaire, Chairman and CEO of Circle on USDC addition on Solana said

“Solana has quickly emerged as a compelling new blockchain platform focused on the critical scaling issues facing the broader DeFi ecosystem,”

USDC market cap climbed from $517 million in January to about $2.8 billion today. The stablecoin comfortably ranks among the top 20 cryptocurrencies on Coinmarketcap. Anatoly Yakovenko, Co-Founder, Solana corroborates the intertwined nature of DeFi with USDC in his statement saying,

“USDC is the lifeblood of the DeFi ecosystem, and we couldn’t be more excited to welcome USDC to the Solana community. We’ve seen a flurry of inbound interest from teams looking to build DeFi products on Solana recently, and a trusted stablecoin like USDC is a critical building block for many of them,”

USDC added “gasless sends” transfer function even before extending to other like Solana

Earlier in August, in a bid to work around crippling transaction costs on Ethereum, USDC introduced gasless send option. By this, wallet developers can either pay for the fees on behalf of customers or present/deduct these fees in USDC instead of ETH.

As well, USDC supply has more than doubled since August at the peak of DeFi summer. Like Anatoly Yakovenko, Co-Founder, Solana said, it’s because “USDC is the lifeblood of the DeFi ecosystem”.

Nonetheless, Tether is still the undisputed leader ruling the current $21.6 stablecoin market. Tether’s market cap is almost touching $16 billion.

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