KEY TAKEAWAYS
- Sonic is upgrading from Bridged USDC Standard to native USDC, enhancing connectivity across multiple blockchains.
- The transition to native USDC will streamline liquidity and utility, with no action required from developers or users.
- Native USDC and CCTP V2 will offer regulated, fully reserved USDC and seamless cross-chain experiences.
Sonic, a high-performance EVM Layer-1 blockchain, is set to upgrade from Bridged USDC Standard to native USDC, as announced here. This transition will also include support for CCTP V2, enhancing connectivity across multiple blockchains such as Avalanche, Base, Ethereum, and Linea.
Launched in December 2024, Sonic has rapidly become the fastest-growing Bridged USDC Standard blockchain, with over $480 million in bridged USDC and nearly $1 billion in Total Value Locked (TVL) across more than 125 applications. The platform is designed to scale decentralized finance (DeFi) applications, offering sub-second transaction finality and the potential to achieve over 400,000 transactions per second.
Enhancing Liquidity and Utility: The Shift to Native USDC on Sonic
The upgrade to native USDC is expected to bring significant benefits to Sonic’s ecosystem. By reducing liquidity fragmentation, Sonic has established a single form of bridged USDC, which represents more than 87% of total stablecoin circulation on the platform. The transition to native USDC will occur seamlessly, with no action required from developers or users.
Following the upgrade, bridged USDC (USDC.e) on Sonic will automatically convert to native USDC (USDC), eliminating the need for code changes or asset swaps for applications or holders. This move aims to enhance liquidity and utility within the Sonic ecosystem.
Key Benefits of Native USDC and CCTP V2
The introduction of native USDC and CCTP V2 will provide several advantages, including regulated, fully reserved, and redeemable USDC, institutional on/off-ramps with Circle Mint for eligible businesses, and easy integration into new and existing applications. Additionally, users can expect fast, secure, and frictionless cross-chain experiences.
The upgrade process is expected to take approximately one week, during which bridged USDC (USDC.e) will remain fully usable for trading, spending, and swapping. The existing bridged USDC mainnet address on Sonic will remain unchanged, simply being renamed to reflect the native USDC.
Why This Matters: Impact, Industry Trends & Expert Insights
Sonic Blockchain is transitioning from bridged to native USDC with support for CCTP V2, enhancing connectivity and liquidity across its ecosystem.
Recent industry reports indicate that USDC’s native adoption is expanding across multiple blockchain networks, facilitating seamless cross-chain transactions. This aligns with Sonic’s upgrade to native USDC, which aims to improve liquidity and utility within its ecosystem.
As per insights from HTX Research, Sonic Blockchain’s technical innovations and rapid growth position it as a leader in DeFi 2.0. This supports the significance of the USDC upgrade in enhancing Sonic’s ecosystem capabilities.
Explore More News:
Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.
