CDS Crypto News USDC on the Rise Again: Coinbase Reports
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USDC on the Rise Again: Coinbase Reports

The market capitalization of Circle's USDC has surged ahead of its larger competitor Tether's USDT in recent months, as highlighted in the report.

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Usdc On The Rise Again: Coinbase Reports

Crypto News- Coinbase Research Highlights Resurgence of Circle’s USDC Stablecoin According to a research report released by Coinbase (COIN) on Monday, Circle’s USDC, the second-largest stablecoin by market capitalization, is experiencing a notable resurgence. Liquidity for USDC is expanding globally, with usage particularly surging outside the U.S., resulting in a significant uptick in supply in recent months.

Analysts David Duong and Li Liu noted that since December 1, 2023, the supply of USDC has surged by 14.3%, surpassing $3.5 billion, elevating its total market cap to $28 billion. This growth outpaces that of its rival, USDT, which saw a more modest 8.7% increase over the same period. USDT, issued by Tether, remains the largest stablecoin with a market cap of $98 billion.

USDC on the Rise Again: Coinbase Reports

The heightened liquidity of USDC reflects a broader surge in demand from both retail and institutional investors, coinciding with a new phase in the crypto market cycle following the introduction of spot bitcoin ETFs in the U.S., which has attracted fresh capital inflows, the authors highlighted.

Stablecoins like USDC, typically pegged to the U.S. dollar, serve as a crucial component of the cryptocurrency ecosystem, facilitating seamless transactions and providing stability amidst market volatility. USDC’s presence in non-U.S. markets is also expanding, with the stablecoin witnessing a fivefold increase in its share of spot and derivatives activity. However, it still accounts for only 4% of total centralized exchange volumes (CEX) globally.

The report attributed the growth in USDC liquidity to various factors, including the catalyst of spot ETFs, the launch of Coinbase’s international exchange, and the relisting of USDC trading pairs on Binance, a rival exchange, late last year.

USDC is issued by Circle, a company backed by Coinbase, underlining the intertwined nature of the stablecoin’s ecosystem with leading cryptocurrency platforms.

Usdc On The Rise Again: Coinbase Reports

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