Circle, expanding beyond the Ethereum mainnet for the first time, is launching support for its USDC stablecoin on Polygon\u2019s proof-of-stake (PoS) chain, the company said today.<\/p>\n
Polygon builds Layer 2 scaling solutions<\/a> for Ethereum. Its PoS chain currently represents a total value locked (TVL) of $2.43B<\/a>.<\/p>\n The move is designed to enable Polygon-based businesses and developers to decrease settlement times and lower costs by accessing USDC directly using Circle Account. In a statement, Circle said account users will be able to convert fiat currency to Polygon USDC in just seconds.\u00a0<\/p>\n The integration will make it easier to manually bridge USDC from Ethereum to Polygon.<\/p>\n Jeremy Allaire, CEO and Co-founder of Circle, described Polygon as \u201can attractive entry point for businesses and developers to build in an established and liquid ecosystem with faster settlement times and reduced costs.\u201d<\/p>\n The news comes as confidence in decentralized stablecoins took a hit<\/a> amid the collapse of Terra Classic\u2019s algorithmic stablecoin, UST<\/a>.<\/p>\n USDC is among the very few stablecoins to have exhibited growth amid the fallout from UST. While its market cap receded 9.4% from the start of March through April, its capitalization quickly rebounded in early May as the panic surrounding algorithmic stable tokens ignited.<\/p>\n USDC\u2019s capitalization bounced on May 11 and rallied to new all-time highs at the end of the month. It posted an all-time high of $54.1B on June 6.<\/p>\n Tether (USDT), the leading centralized stablecoin and USD Coin\u2019s primary rival, suffered a rush of redemptions last month as persistent concerns regarding its backing prompted holders to de-risk.\u00a0<\/p>\n In three weeks, USDT\u2019s market cap tumbled 13% from an all-time high of $83.2B on May 7 to less than $72.5B. Tether briefly depegged as holders raced to offload USDT, with Tether\u2019s price dropping down to $0.95<\/a> on May 12.<\/p>\n MakerDAO<\/a>\u2019s long-standing decentralized stablecoin, DAI, also benefited amid the turmoil in the stablecoin markets. While DAI\u2019s capitalization topped out at $10.4B in February, it rebounded 8% since establishing a floor of $6.4B<\/a> in early May.<\/p>\n<\/div>\nStablecoin Contagion<\/h4>\n
Tether Redemptions<\/h4>\n
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