USDC: The Rising Star in UQUID’s e-Commerce Platform — Stability, Efficiency, and Future Prospects

In the volatile world of cryptocurrencies, the emergence of USD Coin (USDC), a stablecoin developed by Circle and Coinbase, has made a unique achievement.

Launched in 2018, USDC is more than just a stablecoin; it is a steady step forward in ensuring transparency and trustworthiness for digital transactions. With many advantages, USDC has a significant market presence in the cryptocurrency world, also at UQUID, a leading Web3 e-commerce platform. The success and the “rising star” status of USDC as a payment method at UQUID reflects its value as a means of payment and shows the potential of stablecoins to revolutionize how we shop and interact in the digital space.

The Evolution and Impact of USDC in Shaping Modern Digital Finance

Since its beginning, USDC has seen tremendous growth in market capitalization, from just a few billion USD at the beginning to a peak of 56 billion USD in June 2022. However, USDC has also experienced challenges, as its market capitalization dropped to about $24 billion by mid-November 2023. Despite this, USDC has begun to recover in recent months, demonstrating its strength and trust in the market.

According to recent stats provided by Circle in its second annual State of the USDC Economy Report, entitled ‘Welcome to the Era of Open Money,’ the number of USDC wallets with a balance of at least $10 has grown 59% in the past year alone to a total of about 2.7 million. Since its introduction in 2018, USDC has been used to settle over $12 trillion in blockchain transactions and facilitated more than $197 billion of transfers between the banking system and blockchain networks through minting and redeeming in 2023. USDC also facilitated 595 million transactions from January through the end of November 2023.

Not only that, but USDC also proves its openness to technology. For example, USDC’s growth has expanded from the original Ethereum network to 14 different networks, from Algorand to Avalanche, increasing flexibility and accessibility. The introduction of the Cross-Chain Transfer Protocol (CCTP) in April 2023 has also helped USDC become more flexible in transferring funds between blockchains. CCTP has completed 66,500 transactions since launch, marking a significant step forward in reducing friction, increasing safety, and reducing user costs.

The remarkable growth of USDC has helped it become an indispensable tool in the digital financial ecosystem. From its use in daily transactions to its support for DeFi projects, USDC has proven that it is more than just a stablecoin. It is also a critical factor in shaping the future of digital finance.

The Journey of USDC at UQUID and how it gains popularity and utility

USDC was integrated into the system by UQUID in the first half of 2023. This integration is not only part of the digital shopping trend but also reflects UQUID’s awareness of the potential of USDC in shopping online.

CEO of UQUID, Mr. Tran Hung, when talking about the reasons for integrating USDC, emphasized its high liquidity and wide adoption, making it an ideal choice for users looking to shop with cryptocurrency. He commented that the stability and reliability of USDC, coupled with its seamless integration into various blockchain networks, have been pivotal in fostering trust and convenience for Uquid’s users. This is shown in that users often use USDC to buy products such as payment cards (Visa, Mastercard, and American Express Card) on UQUID, offering users a secure and efficient way to transact in the digital realm.

Besides, the average cost per transaction of USDC is also meager, even on blockchain networks with high gas fees like Ethereum, making it an incredibly perfect stablecoin for users to shop with crypto on UQUID, according to Mr. Tran Hung.

The unique thing about UQUID is that although USDC volume may not break records in terms of volume, its value speaks volumes. As of November 2023, the total USDC volume on UQUID has reached an impressive 2 million USD, showing its growing influence. This figure is a testament to USDC’s growing acceptance in UQUID and highlights a broader trend in the digital payment landscape. The inclination towards USDC at Uquid mirrors a more significant shift where consumers are increasingly gravitating towards cryptocurrencies for their stability and ease of use in online transactions.

USDC’s Advantages at UQUID: Speed and Efficiency

When one of the users’ most significant concerns when shopping with cryptocurrency is volatile, the emergence of stablecoins like USDC partly solves this problem. This is why many UQUID users prefer using stablecoins like USDC (and USDT) for online shopping. Since USDC maintains a 1:1 value with the US Dollar, it provides stability in transactions without the volatility of other cryptocurrencies. This makes it a reliable option for Uquid’s users to transact with, knowing that the value of their purchases remains consistent. This is particularly important for an e-commerce platform like Uquid, where product prices are displayed in USD, and users can make purchases in USDC/USDT without fearing significant fluctuations in order value.

However, the success of USDC on UQUID is not only based on its stability but also on the choice and efficiency it brings to users. Specifically, the Cross-Chain Transfer Protocol allows for seamless transfers of USDC across various blockchain networks, significantly enhancing the UQUID user experience by providing flexibility and ease of transaction. This interoperability is crucial in a fragmented blockchain landscape, enabling users to move funds effortlessly across different ecosystems.

Besides, USDC’s growing preference among UQUID users can be primarily attributed to its speed and transaction efficiency. The core appeal of USDC lies in its ability to facilitate rapid transactions with minimal fees, a crucial factor in the fast-paced world of online commerce like UQUID. This efficiency is especially evident in its operations on blockchain networks like Polygon and ERC-20, which are popular among UQUID users since they offer the optimal combination of speed and cost-effectiveness.

This preference also highlights the difference from USDT, another popular stablecoin integrated into UQUID. UQUID data shows that most users often choose the TRX-20 blockchain network (accounting for nearly 50% of total USDT transactions) when making purchases with USDT. In comparison, ERC-20 and POL (Polygon) only account for 12.2% and 2.4%, respectively.

This difference may reflect a tendency to choose networks that offer cost efficiency and high speed. For cryptocurrency users, especially online shoppers, choosing a stablecoin with the right blockchain network helps them save costs and enhances transaction efficiency.

With USDC specifically, this stablecoin’s multi-network support helps provide users flexibility and choice, facilitating transactions and improving their overall shopping experience. It also makes them ideal for the high-frequency, low-value transactions typical in online shopping.

Rising Star, Yet Not the Superstar: USDC’s Journey in UQUID’s Ecosystem

Despite bringing so many benefits to users, UQUID’s current data indicates that USDC still needs to achieve the status of the most widely utilized stablecoin in our Web3 e-commerce ecosystem, with its users mainly coming from the USA. In comparison, USDT (Tether) appears more popular among UQUID’s diverse international user base when making payments on the platform.

However, the insights from Mr. Tran Hung, CEO of UQUID, paint a promising picture for USDC’s future at UQUID. Specifically, Mr. Hung recognizes USDC as a stablecoin with a firm legal standing and a growing trust among users, which are crucial in the rapidly evolving world of digital finance. This trust and legality are essential drivers that could fuel USDC’s wider adoption and usage of the UQUID.

Furthermore, Mr. Hung envisions a significant potential for USDC’s growth at UQUID. He believes that with strategic promotional campaigns and increased participation of USDC in UQUID’s offerings, the stablecoin can gain a larger footprint in the platform’s transactional activities. Such campaigns could focus on educating users about the benefits and security features of USDC, potentially increasing its appeal and usage among UQUID’s global customer base.

These factors, combined with UQUID’s commitment to embracing innovative digital payment solutions, suggest that USDC could soon see an expanded role in UQUID’s Web3 e-commerce platform, enhancing the digital shopping experience for users worldwide.