USDC takes a gamble on Cosmos Hub: How did ATOM react
- Circle announced the launch of USDC on Cosmos Hub.
- ATOM witnessed a surge in prices, volume also rose.
Circle’s USD Coin [USDC] was on the receiving end of a lot of volatility over the last few weeks due to the collapse of the Silicon Valley Bank. However, as time passed, USDC has found its footing and was observed to be making strides towards bettering its reach.
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Circle’n back to the Cosmos
One way that Circle has moved forward is by launching USDC on the Cosmos network. According to Circle’s 28 March tweet, USDC will launch on the Cosmos Hub platform through the asset issuance chain known as Noble.
We're excited to bring USDC to @Cosmos! USDC is expected to launch on @noble_xyz soon, stay tuned for details. #IBC https://t.co/eqU8wno43F
— Circle (@circle) March 28, 2023
Despite Circle’s announcement, the market cap of the coin hasn’t budged. According to Santiment’s data, USDC’s market cap has continued to dwindle after SVB’s event. Although USDC is back to its peg, user interest in the stablecoin has declined.
This decline in interest was also showcased by USDC’s weighted sentiment that fell over the past few days. This implied that the outlook of the crypto community towards USDC wasn’t as positive as it once was.
However, in terms of transfer volume, USDC retained its dominance in the stablecoin sector, accounting for 65.4% of all transfer volume in the last 30 days. Other stablecoins such as Tether [USDT] and Binance USD [BUSD] came in second and third in this area, accounting for 23.2% and 5.0%, respectively.
Despite USDC’s dominance in terms of volume, it lagged behind USDT in terms of the number of users. According to Dune Analytics’ data, there were 13,092 wallets using USDT at press time, whereas the number of users for the former was just 5590.
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Can ATOM holders see green?
This disparity in users could possibly change after USDC launches on Cosmos Hub. However, USDC won’t be the only token that will be impacted positively by this event. Cosmos Hub’s native token, ATOM, could also see some growth.
ATOM surged by 3.57% in the last 24 hours. Coupled with that, the trading volume of the token also witnessed an uptick. Only time will tell whether this surge in Atom’s prices is sustainable or not.