The USDC is the first stablecoin to be launched on a blockchain. There are mixed opinions about whether this will result in more mainstream adoption of stable coins, but many analysts believe that it could lead to an AVAX price surge following its launch on the chain.
The “why is avax pumping” is a question that many people are asking. The “AVAX” has been on a pump since the USDC launch on its chain, and analysts expect an avalanche (AVAX) price surge following the USDC launch on its chain.
Circle’s USD Coin (USDC) is one of the world’s most popular stablecoins, presently ranked as the seventh-largest cryptocurrency by market capitalization. Tether, which has a market worth of $35 billion more than USD Currency, is still the coin to beat. However, the USDC has lately made progress, debuting on new chains and drawing new users, which is why many predict its market value to continue to rise.
The currency was just added to Avalanche’s blockchain, which is noteworthy since it suggests that Avalanche is planning to expand its DeFi ecosystem. Indeed, the debut of the USDC might make it more profitable for dApps to launch their initiatives in the Avalanche ecosystem.
And, as the project’s native currency, AVAX might see a big price increase if the project’s DeFi ecosystem flourishes as a result of the USDC listing.
What does the arrival of USDC imply for Avalanche?
Since August 2021 and December 2021, the Total Value Locked (TVL), which is effectively a market valuation for DeFi applications, has increased over thirty times for Avalanche’s dApps, according to experts.
The project’s objective to strengthen the DeFi sector on Avalanche resulted in the early expansion of the DeFi sector. Some may recall that the project sparked the Avalanche Rush effort, which included a $180 million incentive scheme.
Now that Circle’s stablecoin is operational on Avalanche’s blockchain, the project gains more variety. Furthermore, it offers investors an alternative to blockchains that are purely based on Tether.
USDC’s quick expansion has resulted in the stablecoin accounting for around one-third of the overall stablecoin supply in the crypto industry, and the project is witnessing steady acceptance. Tether’s main opponent is Circle’s stablecoin, which is the second-largest stablecoin in the world of digital assets.
As previously said, fiat-backed stablecoins have the potential to cause a surge in on-chain activity on networks where they are deployed, causing developers to begin developing DeFi projects there. With Avalanche now among them, experts predict a 10% increase in the price of the AVAX coin, bringing it closer to the $91 objective.
Analysts estimate the Avalanche price to hit $142 as the next Fibonacci extension goal after that.
Avalanche is compatible with Ethereum’s smart contracts, which could help it develop since it implies USDC is accessible on C-Chain, which allows Ethereum-compatible smart contracts to be created.
USDC is accessible on a number of other significant networks, including TRON, Solana, Hedera, and Stellar, in addition to Avalanche. Avalanche is only the most recent example of the company’s hurry to grow, which opens up new possibilities for both projects.
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The “what is usdc crypto” is a question that many people might ask. The USDC launched on the Ethereum chain and analysts expect an avalanche (AVAX) price surge following the launch.
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