Circle Integrates Native USDC on Hyperliquid Amid Rising Competition
By: Eva Baxter
Circle, the issuer of the stablecoin USDC, has successfully integrated native USDC on the Hyperliquid network. This integration enables seamless cross-chain transfers for users, developers, and fintech companies by utilizing Circle's upgraded Cross-Chain Transfer Protocol (CCTP v2). As announced mid-September, this move lowers the barriers for trading and payment providers, aiding in smoother operations and improved interoperability in the decentralized finance (DeFi) space.
In pursuit of expanding its presence, Circle has made significant investments in Hyperliquid, including acquiring HYPE tokens. It is also contemplating operating as a validator on the network to further entrench itself as a key player in Hyperliquid’s evolving ecosystem. The company has announced plans to initiate incentive programs aimed at attracting developers to Hyperliquid, providing them with innovative toolkits and software development kits to facilitate the integration of USDC more efficiently into decentralized applications. Jeremy Allaire, Circle’s CEO, reiterated the importance of these strategic developments as part of the company’s larger agenda of fostering Web3 growth and ecosystem interoperability.
On the competitive front, Hyperliquid’s recent data shows a remarkable uptake, with its platform handling about 14% of Binance's trading volume and generating $30 million in weekly fees. However, this growth comes amid internal competition, as Hyperliquid plans to launch its stablecoin, USDH. Market analysts have highlighted that the introduction of USDH might potentially shave off a significant $200 million in annual revenue from USDC if it gains traction.
Additionally, the Hyperliquid ecosystem has seen the submission of the Hyperliquid Improvement Proposal 4 (HIP-4) by a team from Kalshi, aimed at overcoming challenges in deploying prediction markets. The ‘Event Perpetuals’ innovation promises to streamline market resolution and enhance fair price discovery, setting the stage for robust market participation without relying heavily on continuous oracle updates. This development reflects the dynamic nature of the crypto space, where strategic integrations and innovations shape the future landscape.
