On February 28, Cardano announced the deployment of the USDCx stablecoin framework in partnership with Circle to integrate the xReserve system, enabling 1:1 minting and redemption mechanisms. This move significantly enhances the US dollar-denominated liquidity on the Cardano chain, even though the total locked value (TVL) remains in a low range.
USDCx is not a native USDC token but a bridged token linked to Circle’s reserves. Users can mint or burn USDCx through cross-chain operations on Ethereum to redeem and transfer liquidity into decentralized trading applications. The first platforms to achieve real-time integration include Minswap, Liqwid, and SundaeSwap, providing practical scenarios for “Cardano stablecoin liquidity growth” and “USDCx cross-chain minting mechanisms.”
On-chain data shows that, so far, the market cap of Cardano stablecoins is approximately $34 million, with a TVL of about $137 million. The growth in stablecoin size contrasts with the low activity in DeFi, as DEX trading volume and network fees remain low, indicating that funds are mostly held in conservative dollar assets and have not yet entered large-scale lending or leverage strategies.
Industry analysts believe that prioritizing the development of “compliant stablecoin infrastructure” will help pave the way for payments, fund management, and institutional-grade DeFi applications. Historically, insufficient stablecoin depth limited Cardano’s ability to support dollar-denominated loans and real-world asset experiments. Now, under the themes of “Cardano DeFi ecosystem revival” and “how USDCx can improve on-chain settlement efficiency,” the network is choosing to first improve underlying liquidity rather than chase short-term gains. Whether TVL can rebound in the future will depend on whether stablecoin funds are converted into actual on-chain demand.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Gonka launches GiP regular meeting mechanism, with the first meeting focusing on network scalability
Decentralized AI Computing Power Network Gonka Launches GiP Normalized Meeting Mechanism, with the first meeting scheduled for March 3rd to discuss network scalability and upgrade the Proof-of-Compute mechanism to promote transparent governance of decentralized protocols.
GateNews10m ago
Korea University Launches Enterprise Validator on Injective With 369K INJ Staked
Korea University launched an Injective validator with 369,809 INJ staked, adding an institutional node to the network’s validator set.
INJ technical levels in focus were supported at $3.03 and $2.90, while resistance was clustered between $3.39 and $3.60.
Korea University has launched an
CryptoNewsFlash27m ago
WLFI publishes the USD1 real-time on-chain reserve proof page
Foresight News reports that the Trump family’s crypto project WLFI has launched a real-time on-chain reserve proof page for USD1. The official statement says that Chainlink CRE will continuously pull reserve data from BitGo, verify it, and then write it on-chain. The page shows that the current USD1 collateralization rate is 100%, with a total supply of 4,711,598,238.81 tokens.
GateNews39m ago
Nansen Boosts User Engagement With AI-Led DeFi Rewards Via UnifAI
Nansen partners with UnifAI to integrate AI-driven DeFi tools into its Nansen Points Season 3, rewarding users for on-chain activities. This collaboration aims to lower the barriers to DeFi access while enhancing user engagement through gamified incentives.
BlockChainReporter1h ago
Uniswap fee switch voting in progress! UNI price defies the trend and rises, with 8 chains potentially generating millions of dollars in monthly revenue
Uniswap token holders have initiated a new round of DAO voting, proposing to enable fee switching mechanisms on 8 blockchains, which is expected to generate significant protocol revenue. UNI has increased by approximately 9% over the past 7 days, while BTC and ETH have declined. If the proposal passes, liquidity fees will be directed into the "token treasury," allowing users to earn rewards by burning UNI, creating a deflationary outlook. The proposal has passed the first round of voting, with the final vote ending on March 4.
GateNews3h ago
Andrew Webley reveals Squarebird acquisition details and a $30 million credit line, with Smarter Web accelerating Bitcoin strategic deployment
Andrew Webley announced two major initiatives in the latest weekly report: acquiring profitable web design company Squarebird and securing a $30 million credit line to enhance the company's cash flow and financial flexibility. These measures aim to optimize revenue streams and address cost pressures caused by market fluctuations. At the same time, the company raised £26,745 through equity financing. Webley also discussed digital capital and AI innovation with industry peers and plans to hold a strategic meeting to implement related ideas.
GateNews3h ago
