It’s official: the USDC stablecoin will be implemented in its native version on the Sui blockchain. The news was announced by Circle itself, the issuer of USDC.
The Sui blockchain welcomes the USDT stablecoin
Sui is a new blockchain-based crypto ecosystem that is experiencing significant growth.
Although the launch only took place last year, the Sui channel has already risen to seventh place for TVL in DeFi, surpassing legacy chains like Avalanche and Polygon.
With its billion dollars in TVL, it almost triples the TVL of Cronos, being almost five times higher than that of Cardano.
Sui is a proof-of-stake based Layer 1 blockchain with fast and cost-effective transactions. It uses a process called “transaction parallelization” which allows transactions to be processed in parallel. This is a kind of horizontal scaling that is similar in some ways to Iota, and leads to better organization of data in the consensus mechanism.
It even promises instant transactions and aims to become the main chain, for example for GameFi.
Its goal is to reach billions of Web3 users, through superior smart contracts.
The SUI cryptocurrency
SUI debuted in the crypto markets in May last year, at around $1.4.
Until October 2023, the price had only continued to decline, even falling below $0.37.
However, thanks to the last bullrun, it began a strong recovery, which by March this year brought its price back to almost $2.2.
However, the price then fell back below $0.6, notably in August, only to rebound, especially after mid-September. Today it stands at almost $2.
An interesting thing is that, unlike other young cryptos, the development of its market value does not seem purely speculative.
Of course, over the past twelve months, volatility has been sustained, but not exaggerated. Additionally, the classic pump-and-dump pattern is not in sight.
The fact is that many consider this crypto project to be serious, and not purely speculative or based solely on a narrative. In many ways, it resembles Solana, of which it may also become a direct competitor in the future.
USDC stablecoin finally on the Sui blockchain
Circle’s USDC is the world’s second-largest stablecoin by market capitalization.
The fact that Circle decided to issue it directly on Sui, without going through a bridge, means that the company is betting a lot on this blockchain.
It is worth remembering that USDT by Tether does not yet exist natively on Sui, so for the moment, the main stablecoin on Sui is indeed USDC.
In its official press release, Circle states that it is excited to announce the launch of native USDC on the Sui mainnet, so that it will be accessible to developers and users without the need for bridging.
They also inform that Sui is the first blockchain based on the Move programming language to support native USDC and that it currently includes more than 85 applications.
They point out that in reality on Sui there already existed a “bridged” form of USDC, wUSDC, which is a non-native token representing USDC on Sui via Wormhole. However, wUSDC is not issued by Circle and is not compatible or tradable with Circle Mint or the Circle APIs.
In this regard, a guide has been published to migrate from wUSDC bridged stablecoin to native USDC.
The advantages
In a September 17 post on the official Sui blog, it was stated that the integration of USDC would immediately improve the utility and interoperability of this blockchain for both users and developers.
In fact, it will add liquidity, thereby simplifying transactions and improving the market efficiency of the entire ecosystem.
Additionally, in turn, Sui’s DeFi environment will provide a fundamental foundation for USDC to continue to grow.
In particular, the integration of native USDC on Sui will allow dApps on this chain to expand their reach and grow further, opening up new opportunities across all verticals, especially within DeFi itself.
It is worth noting that until November last year, Sui’s TVL had not yet exceeded $100 million, while in February this year it had already exceeded $500 million.
The biggest growth, however, took place last month, when the $1 billion mark was reached and surpassed.
As for the market capitalization of USDC, in reality it has decreased over the last two weeks, going from 36 to 35 billion dollars, but if its use were to become widespread within the Sui ecosystem, it is possible that it increases again.
