- Native USDC will be deployed to Base in the coming week.
- USDC lags USDT in terms of market capitalization.
An important milestone lay ahead for Base, as Circle’s CEO recently made a pivotal announcement. This new development raises questions about the potential effects on stablecoin market capitalization and its total value (TVL).
Native USDC based
Base will make USDC native to the platform, according to recent reports from Circle, the publisher of USDC, and Jeremy Allaire, CEO of Circle. This transition is scheduled for the next week, as stated by Allaire, although no specific date has been given.
Original $USDC on @BuildOnBase. Next week. #StableSeptember. Let’s go! https://t.co/oqfI0ZZhCn
— Jeremy Allaire (@jerallaire) August 29, 2023
In addition, the bridged version of the stablecoin is currently being used. However, Circle’s official blog post has made it clear that this bridged version will be phased out with the launch of the native USDC version. This strategic shift is expected to improve stablecoin liquidity on the Base platform.
This strategic move is in line with Circle’s recent announcement regarding the expansion of USDC to additional blockchain networks. Additionally, given Coinbase’s increased ownership stake in Circle, integrating native USDC into Base seems like a logical step because of the existing partnership.
However, what is the current situation with the stablecoins on Base?
The Base stablecoin market cap
Since its inception, Base has experienced consistent growth in its stablecoin market cap, as evidenced by data from Defillama. After an increase that took the price above $53 million on August 16, the market cap chart shows a steady upward trajectory.
At the time of writing, the stablecoin market cap had crossed $63 million. At the same time, the Total Value Locked (TVL) on the platform has also gradually increased according to the data. The TVL has approached the $198 million mark at the time of writing.
Source: DefiLlama
While the precise portion of the stablecoin market cap attributable to USDC on the Base platform was not explicitly specified, the recent development holds promise for potential growth in the presence of USDC. However, the exact magnitude of the impact this development could have remains uncertain.
How the multichain strategy could work for USDC
At the time of writing, USDC maintains its position as the second largest stablecoin, behind Tether’s USDT. According to data from CurrencyMarketCapthe market cap for USDC was over $26 billion. USDT, on the other hand, had a market cap of over $82 billion.
Given its strategy to expand across multiple blockchain networks and its impending integration on the Base platform, USDC has the potential to witness growth in its market share within the stablecoin market. This strategic move can contribute to increased awareness and adoption of USDC within the wider ecosystem.