Fantom Foundation Launches USDC.e Stablecoin Backed by Circle and Wormhole

• Fantom Foundation launched USDC.e stablecoin on Wormhole to boost liquidity and accessibility in their ecosystem, offering a seamless transition to native USDC in the future.

• USDC.e provides various functionalities, such as storage, payment, trading, borrowing, and lending, to developers and users on the Fantom blockchain.

Fantom Foundation, in collaboration with Circle and Wormhole, has announced the launch of its USDC.e stablecoin on the Wormhole platform, set to go live today, April 5. This collaboration bolsters liquidity, stability, and accessibility within the Fantom ecosystem, providing users and developers with a seamless experience. 

We are excited to announce that Fantom's canonical stablecoin, $USDC.e, will launch tomorrow (April 5), supported by @Circle and @Wormhole

USDC.e on Wormhole is bridged from native $USDC, located in a smart contract on Ethereum, and holds the potential to be upgraded to… pic.twitter.com/wr9hp83HPH

— Fantom Foundation (@FantomFDN) April 4, 2024

Streamlining Liquidity and Accessibility

The deployment of USDC.e on Wormhole bridges the native USDC from Ethereum’s smart contract to the Fantom blockchain, offering users various functionalities, including storage, payment, trading, borrowing, and lending. Additionally, leveraging the Wormhole Native Token Transfers (NTT) standard, developers can build on bridged USDC with contract addresses that remain persistent even in the event of an upgrade to native USDC.

Circle and Fantom assure users of a smooth transition to native USDC in the future, eliminating the need for developers to update contract addresses or execute asset swaps. In addition, any potential transition would occur seamlessly, with USDC.e tokens automatically converting without user intervention. This collaborative effort underscores the commitment to uninterrupted experiences and continuous access to robust stablecoin liquidity on the Fantom Network.

Advantages of USDC.e on Fantom

The introduction of USDC.e on Fantom brings forth numerous advantages for the ecosystem. Notably, it lays the groundwork for a potential path toward a native USDC stablecoin on Fantom, immediately available to developers and users. Additionally, the implementation addresses stablecoin liquidity fragmentation, consolidating liquidity to create a stronger ecosystem and enhance user experience.

Fantom and Circle may upgrade bridged USDC.e to native USDC, further solidifying the ecosystem’s stability and accessibility. The seamless integration with Circle and Wormhole exemplifies the power of collaboration in overcoming challenges in cross-chain communication and liquidity management.

Users can now leverage Fantom’s stablecoin for various purposes, including borrowing, lending, trading, storing, and making payments. This partnership stresses ease of use and wider community partnerships. Moreover, it enhances the Fantom ecosystem and boosts Circle’s community engagement by connecting users from various platforms.

However, amidst the excitement surrounding the launch, key figures in the blockchain space, such as Andre Cronje, have raised concerns regarding the sustainability of certain stablecoins. Cronje’s caution regarding Ethena Labs’ USDe stablecoin, citing similarities to past crypto failures, underscores the importance of thorough evaluation and risk assessment in cryptocurrency.

Fantom Introduces Sonic Update 

The announcement by Fantom Foundation comes a week after it unveiled its latest development, Sonic, which was designed to address congestion issues within the Opera network, as reported by CryptoNews Flash. This innovative solution comes amidst the network’s significant growth, with over $10 billion in Total Value Locked (TVL) in 2022, propelling it to become one of the most widely used networks in the crypto sphere. In addition, Sonic technology, crafted by the Fantom team, aims to tackle the congestion challenges experienced on the Opera network during periods of high demand. 

Recent market data indicates positive momentum for Fantom’s native cryptocurrency, FTM. FTM demonstrates resilience and potential for further growth by trading at $0.8, with a market capitalization of $2.2 billion and a trading volume of $148 million. Additionally, renowned crypto analyst Ali Martinez has forecasted a bullish trajectory for FTM, predicting a price target of $1.44 in the near term.