Circle Chief Product and Technology Officer Nikhil Chandhok (@chandhok) said in a September 16 interview with Bankless (@Bankless) that Ethereum is the largest blockchain for $USDC, and simply moving existing activity over to Arc won't generate actual growth.
New Layer 1 projects typically survive by draining liquidity from established chains, but Circle is acknowledging that this capital recycling game has a hard ceiling. Arc isn't being built to cannibalize $ETH volume; it now has to prove it can actually bring net-new institutional money onchain.
New Layer 1 projects typically survive by draining liquidity from established chains, but Circle is acknowledging that this capital recycling game has a hard ceiling. Arc isn't being built to cannibalize $ETH volume; it now has to prove it can actually bring net-new institutional money onchain.