In a strategic move to establish dominance within the emerging Hyperliquid ecosystem, Circle, the issuer behind the second-largest stablecoin USDC, has officially launched its native USDC on the innovative HyperEVM Layer 1 blockchain. This announcement, made on September 16, comes on the heels of a notable governance vote regarding the newly proposed USDH stablecoin, positioning Circle to strengthen its foothold in the decentralized finance (DeFi) landscape.
Circle’s foray into the HyperEVM follows a $4.6 million acquisition of HYPE tokens by a wallet associated with Circle, which took place shortly after the governance vote for USDH. The vote saw the Native Markets team gain control over the USDH ticker, with intentions to establish it as the primary stablecoin for liquidity within the Hyperliquid ecosystem. While USDH aims to become the mainstay stablecoin on HyperEVM, Circle is undoubtedly leveraging its early mover advantage to secure market presence before USDH is fully operational.
“Our goal has always been to collaborate with innovative projects that are redefining what’s possible on-chain,” remarked Circle CEO Jeremy Allaire during a recent podcast appearance. “We strive to provide a digital dollar that is not only trusted and transparent but also highly liquid.”
Before the launch of USDC, the HyperEVM had seen limited stablecoin options, with existing tokens like feUSD and USDT0 lacking significant liquidity. With the introduction of USDC, Circle aims to enhance the trading environment on the HyperEVM, offering users a robust digital dollar solution that can facilitate smoother transactions and trading activity.
In addition to solidifying its stablecoin offering, Circle is set to make further enhancements to the HyperEVM ecosystem, including the establishment of direct connectivity between the HyperCore decentralized exchange (DEX) and the HyperEVM. This initiative will empower users to easily bridge their perpetual and spot balances across the two platforms, enhancing user experience and liquidity.
The timing of Circle’s launch also coincides with a significant resurgence in HYPE’s value, which surged to an all-time high of $59 and a market capitalization of $15 billion, following a turbulent period earlier this year when it dipped to $9.5 amidst the HLP vault exploit. The growth in HYPE’s market presence can be attributed to a variety of factors, including increased trading volumes driven by the Hyperliquid platform’s innovative offerings and expanding user base.
As the eighth-largest blockchain in the DeFi sector, with a total value locked (TVL) of $2.66 billion, Hyperliquid’s HyperEVM is quickly solidifying its reputation as a competitive player in the DeFi space. Circle’s proactive measures to integrate USDC into this burgeoning ecosystem indicate a positive trajectory for the platform and reflect the ongoing evolution of stablecoins in the decentralized market.
Circle’s initiative serves as a testament to its commitment to enhance liquidity in the DeFi landscape while competing against emerging players like USDH. As the growing ecosystem continues to attract users and liquidity, it remains to be seen how the rivalry between USDC and USDH will unfold and shape the future of stablecoins in DeFi.
