Algorand becomes the first non-Ethereum blockchain to support USDC, ALGO/USD drops for second straight day
- Algorand will be the first non-Ethereum blockchain to deploy USDC.
- Previously, Algorand had signed up a collaboration deal with Tether (USDT).
- ALGO/USD has been trending in a narrow range between $0.226 and $0.25 so far this month.
Centre, the collaboration between Coinbase and Circle that administers the USDC stablecoin, has recently announced a framework for multi-chain support for USDC. Algorand appears to be the first non-Ethereum blockchain to deploy support for USDC.
Exciting milestone for Circle and USDC announced today! https://t.co/CEHpxQdTSv
— Circle (@circlepay) June 24, 2020
Centre noted that it chose Algorand because the blockchain is optimized for high-volume financial applications. Circle will operate a token bridge allowing USDC on Algorand to be swapped with ERC-20 USDC tokens on the Ethereum blockchain. Fiat reserves will back all USDC stablecoins on Algorand.
USDC has become a very popular and significant asset on the Ethereum network. It was used to stabilize the Maker protocol after the March 2020 crypto crash. It has also helped facilitate margin trading on Binance and other exchanges.
Algorand Foundation COO, Fangfang Chen, said:
As more financial institutions and enterprises look to build decentralized financial applications, they need a well-suited infrastructure and a compliant, regulated, and widely accepted stablecoin.
Chen also noted that Algorand is excited to collaborate with Circle. They are looking to provide financial organizations with the tools required to leverage the benefits of USDC and explore real-world use cases. Algorand had previously also finalized a partnership agreement with Tether (USDT).
ALGO/USD daily chart
ALGO/USD has dropped from $0.2384 to $0.235 this Thursday as the bears stayed in control for the second straight day. The price has been trending in a narrow range between $0.226 and $0.25 over the entire month of June. ALGO/USD peeked above the green Ichimoku cloud this Tuesday before the bears entered the market. The MACD shows sustained bearish momentum, while the Elliott Oscillator has had three straight green sessions.
Support and Resistance
ALGO/USD has strong resistance levels at $0.236 (SMA 20), $0.2375, $0.2395 (SMA 50) and $0.242. On the downside, healthy support levels exist at $0.231, $0.2264 and $0.2228 (SMA 50).
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
