Sui Network, a layer-1 blockchain, has announced the integration of native USD Coin (USDC) and the Cross-Chain Transfer Protocol (CCTP), effective from September 17. This integration aims to enhance liquidity and facilitate cross-chain transactions, benefiting users and developers within the Sui ecosystem. The upgrade will transition liquidity from the current bridged version of USDC to the native form, though the Wormhole’s Portal bridge will continue operating without interruption.
In preparation for this transition, the Ethereum-bridged USDC will be rebranded as “wUSDC” on block explorers. Nikhil Chandhok, Circle’s Chief Product Officer, highlighted the significance of this collaboration, emphasizing Circle’s dedication to advancing blockchain applications and improving payment experiences.
This integration follows recent developments, including Grayscale’s launch of the Sui Trust, which has contributed to the growing exposure of Sui and other cryptocurrencies. Sui Network, currently valued at US$2.9 billion, has experienced a notable recovery in its total value locked (TVL). After a decline from over US$1 billion in May 2024 to US$516 million in August, Sui’s TVL has rebounded to over $700 million, positioning it as the 10th largest blockchain by TVL, according to DefiLlama. Futures market activity has also increased, with open interest reaching US$230 million, indicating strong demand among traders.
Sui’s DeFi sector has seen continued growth, with TVL rising by over 15% in the last 30 days. Leading this expansion are protocols such as NAVI Protocol, Scallop Lend, Suilend, and Aftermath Finance. Additionally, Sui’s stablecoin volume has grown to over US$360 million, and DEX volume has increased by more than 32% in the past week, nearing US$300 million. Outside the crypto space, companies like 3DOS, a 3D printing device manufacturer, have adopted Sui due to its fast transaction speeds and low costs.
Technical indicators present a mixed outlook for Sui. The Relative Strength Index (RSI) and MACD suggest a neutral to positive trend, while the Commodity Channel Index (CCI) and Momentum indicators point towards potential selling. Most moving averages indicate buying opportunities, though the 200-period simple moving average signals some resistance.
Stablecoins, such as USDC, play a vital role in bridging the gap between traditional finance and decentralized finance (DeFi). By offering a stable and widely accepted medium of exchange, stablecoins enable users to move between fiat currency and cryptocurrency markets with greater ease and security. Stablecoins as a reliable intermediary, allows customers to engage in crypto transactions with the confidence that their assets are tied to a stable, dollar-backed currency.
