🟧Circle's goal with the launch of Layer1 - Arc: Is it simply to compete with Tether? 🔶Circle has just announced the launch of Arc - an EVM-compatible Layer 1 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 revolving around USDC. 🔶Q2 2025 Circle's financial results are boosted by the "tailwind" of the 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 shares continue to rise after the financial report, with a current market capitalization of ~$39B (equivalent to ~63% of the circulating USDC value). 🔶Arc launches 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 USDC demand. -> When Arc's mainnet goes live, cross-border settlements, payment rails, and stablecoin infrastructure (entirely controlled by Circle) will mean that $USDC will not need to go through any dapp or third-party company, creating a closed ecosystem. 🔶USDC supply increases by 90%, revenue rises by 53%, and the company's market cap approaches $40B -> Circle is creating a super attractive datasphere for Arc. It must be acknowledged that while Circle's business performance is poor, they know how to seize opportunities for an exit.