In a landmark move, the USD Coin (USDC) recently expanded operations to Base and Optimism networks. For the first time, Coinbase and Circle account holders can directly transfer their USDC stablecoin to Base. This event signifies progress in providing official versions of the coin, replacing the previously used bridged versions.
Since its launch on August 9, numerous Coinbase users and account holders at Circle could not send USDC to Base. Instead, they relied on a bridged version, dubbed “USDbC,” to make transactions. This lack of native support created a sense of scepticism for some users in adopting the Base network.
The launch of native USDC has yet to be integrated across the board on the network’s decentralized exchanges. Major DEXs like Uniswap, Baseswap, among others, reportedly continue to show the old contract address when users select the stablecoin, causing some confusion.
Critics argue that this delay may be a crucial setback for USDC, especially considering its competitive market dynamics. The stablecoin has witnessed its market share erode by Tether throughout 2023. Adding to the market threat are fresh entrants such as First Digital USD and Binance’s active promotion of its launch in June and August, respectively, as well as PayPal’s PYUSD stablecoin launch on August 7.
Despite these burgeoning challenges, the USDC team underscores their commitment towards the coin’s expansion and ensuring smooth user interaction. Optimism’s announcement also confirmed the launch of native USDC as a replacement to the old USDC.e token. Once again, though, the scepticism arises from the lack of integration of the new version into Optimism DEXs.
These developments reflect the dynamism inherent in the blockchain technology space. They hold implications not just for USDC but also for the broader question of the future of digital, decentralized currency systems. Balancing innovation, competition, user convenience, and technology robustness can sometimes prove to be a complex puzzle. The unfolding predictions and related market responses to how Circle handles these challenges are sure to make for an intriguing watch.
Source: Cointelegraph
