- Circle to halt USDC on Flow starting September 3, 2024, due to a network upgrade, urging users to transfer assets before the deadline.
- Jump Crypto moved $136M in ETH to exchanges, while ETH price dropped 30%. Net ETH outflows for August reached $111.5M.
- ETH trading volumes are high, with OKX alone seeing over $2.1B daily, despite Jump Crypto’s significant ETH transactions.
Starting at three in the morning on September 3, 2024, Circle declared that it would no longer support USDC on the Flow blockchain (Cadence). ET. This decision follows upcoming network changes on the chain.
The stablecoin issuer urges all USDC holders on Flow to transfer their assets to other blockchains before the deadline. Circle plans to freeze all USDC on Flow once the deadline passes. Subsequently, a snapshot of user balances will be taken to facilitate manual redemptions starting September 4, 2024.
Network Upgrade Drives Circle’s Decision
Circle’s discontinuation of USDC support on Flow is driven by the blockchain’s transition to the Crescendo network upgrade. This upgrade will enhance compatibility with EVM-based ERC-20 USDC, which is expected to integrate seamlessly across the entire Flow ecosystem. Consequently, Circle and Flow have pledged to provide dedicated resources to ensure a smooth transition for users.
In relevant news, Jump Crypto has been active lately in cryptocurrency. Jump has moved up to $136 million worth of Ethereum to a number of exchanges in the last several days, including Coinbase, OKX, and Binance.
On the other hand, the price of ETH has decreased by 30% in the same time frame, from $3,230 to $2,250. Jump Crypto’s outward ETH transfers to exchanges only paint a partial picture despite this decline.
Impact of Recent ETH Market Trends
During the same timeframe, Jump Crypto saw $24.44 million in ETH flow back into its wallets from exchanges. As a result, Jump Crypto experienced net ETH outflows totalling $111.5 million month-to-date.
This figure includes wrapped and staked ETH tokens. Although this amount appears substantial, it is relatively small compared to the daily trading volumes on major platforms. For instance, OKX’s ETH/USDT market alone is witnessing over $2.1 billion in daily volume.
Furthermore, Jump Crypto has increased its ETH transfer volumes to exchanges since July 25. This uptick follows a large unwrapping of liquid stake ETH via Lido, amounting to 120,695.4 ETH.
This is today valued at about $271 million, down from its $317.1 million valuation at the time of the acquisition. This information demonstrates Jump Crypto’s tactical decisions in the face of shifting market conditions.
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