Cardano Launches USDCx to Compete with Ethereum and Solana in Stablecoin Liquidity
Cardano plans to launch USDCx by the end of February to fix its long-standing shortage of dollar liquidity. The move aims to help Cardano compete with bigger DeFi networks. Cardano is preparing to launch its...
- Cardano plans to launch USDCx by the end of February to fix its long-standing shortage of dollar liquidity.
- The move aims to help Cardano compete with bigger DeFi networks.
Cardano is preparing to launch its USDCx, a dollar-pegged stablecoin linked to Circle’s USDC, at the end of February. This move aims to solve the stablecoin liquidity shortage. Philip DiSaro, CEO of Anastasia Labs, a smart contract development firm building within the Cardano ecosystem, confirmed the update on February 15.
What this Launch means for Cardano
This launch mainly focuses on stablecoin liquidity. Stablecoins are used for trading, payments, lending, and borrowing. Data from the industry trackers shows that Cardano hosts less than $40 million in stablecoins, which is much less compared to other chains like Ethereum or Solana. Cardano believes that by bringing USDCx, it could increase the number of traders and developers building serious financial products on the Cardano ecosystem.
According to DiSaro, USDCx is backed by 1:1 real USDC and usable across DeFi apps with support through Circle’s reserve system. For users, USDCx acts similarly to USDC, with one technical difference: the direct redemption for dollars from Circle is available only to Circle’s institutional partners.
This launch comes while Cardano is integrating with LayerZero, which allows apps on Cardano to communicate with more than 50 blockchains. Despite these upgrades, Cardano’s native token, ADA, has fallen over 25% in the last month. So traders are waiting for the real usage growth instead of just the infrastructure announcement.
If USDCx brings stablecoin liquidity, then it may increase the DeFi activity, and the trading volume could grow with more builders. For Cardano, February will be the most important month to show that the improved access to dollar liquidity can finally help its DeFi.
Highlighted Crypto News:
Can Bittensor Sustain Its 20% Rally After Rebounding From $160?
Delegate Your Voting Power to FEED DRep in Cardano Governance.
DRep ID: drep12ukt4ctzmtf6l5rj76cddgf3dvuy0lfz7uky08jfvgr9ugaapz4 | We are driven to register as a DRep by our deep dedication to the Cardano ecosystem and our aspiration to take an active role in its development, ensuring that its progress stays true to the principles of decentralization, security, and community empowerment.DELEGATE VOTING POWER!
