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🟧The goal of Circle when launching Layer1 - Arc: Is it simply to compete with Tether?
🔶Circle has just announced the launch of Arc - a Layer 1 EVM-compatible blockchain, where USDC officially becomes the gas token, integrating an FX engine system and near real-time settlement capabilities. USDC is set as the central currency, with all transactions, liquidity, and financial communications converging to USDC.
🔶Q2 2025 Circle's financial results surged thanks to the "east wind" IPO:
- Circulating supply increased by 90% YoY, reaching approximately $61–65B.
- Total revenue from reserves and services reached $658M, up 53% YoY; Circle retained $251M in profit after distribution costs.
- CRCL stock continues to rise after the financial report, with a market capitalization currently at ~$39B ( equivalent to ~63% of the circulating USDC value ).
🔶Arc launched as an open payment infrastructure under the guise of Layer-1, with USDC becoming the gas for the blockchain as transaction fees, fx swaps, and settlements all use USDC, providing a boost to the demand for USDC.
When the Arc mainnet, cross-border settlement, payment rails, and stablecoin infrastructure ( controlled entirely by Circle, $USDC will not need to go through any dapp or third-party company and will have a closed ecosystem.
Circle is creating a super attractive datasphere for Arc. It must be acknowledged that Circle's business performance is poor, but they know how to seize opportunities to exit.