Circle Launches Arc Testnet & USDC Gas, EVM Compatibility
Circle has launched the Arc Layer 1 public testnet, a Move-built, EVM-compatible blockchain designed as an “internet economic operating system.” It features native USDC gas payments, eliminating reliance on volatile tokens like ETH, and offers low fees, high throughput and fast finality for micropayments and remittances. The Arc testnet, open for three weeks, invites developers to deploy nodes, test smart contracts and experiment with an eight-step interaction guide—from claiming USDC/EURC test tokens and minting NFTs to adding liquidity on Curve and ArcFlow Finance. Arc integrates with Circle’s full-stack platform for lending, capital markets, forex and payments, while Circle governs the validator set ahead of planned decentralization at mainnet launch in H1 2024. Eleven projects are already live, covering P2P fiat channels, NFT marketplaces, stablecoin wallets and cross-chain infrastructure. Traders should use the testnet to explore tooling, wallets and dApps, maintain realistic airdrop expectations and prepare for Arc’s production launch.
Neutral
The Arc testnet launch enhances USDC utility and opens new channels for developers without impacting the stablecoin’s peg. In the short term, traders can leverage the testnet for early ecosystem access and potential airdrop positioning, but USDC price remains stable. Over the long term, full mainnet activation and community governance may drive higher USDC transaction volume, further integrating it into payments and DeFi, yet the coin’s stable value suggests neutral market impact.