TL;DR
USDC’s market cap is up 14.3% since December 1, 2023 (sitting at ~$28B) due to an total rise in crypto buying and selling quantity, and a push from Binance.
Full Story
So, we all know nobody requested, however, USDC has been doing tremendous effectively currently.
Like, its market cap is up 14.3% since December 1, 2023 (sitting at ~$28B).
On the flip facet, USDT, the most important stablecoin on the block, is just up 8.7% (nonetheless sustaining a cool $98B market cap although).
We thought “Huh, why is USDC doing higher when all stablecoins are principally the identical?”
So for funzies, let’s dive in:
Most stablecoins are just about the identical.
They’ve been created to be a type of crypto which has nearly no volatility, by being pegged in opposition to some outdoors forex (e.g. USD, EUR, GBP).
On this occasion: USDC is pegged to (you guessed it) the US greenback — so 1 $USDC ought to all the time equal $1 USD.
So in the event that they’re all principally equal, what’s the true distinction?
Truthfully, it is so simple as availability and liquidity.
Extra individuals are shopping for USDC → which suggests extra individuals are utilizing/buying and selling it → making it extra broadly obtainable.
Which is the secret for stablecoins — trigger if nobody will settle for your coin, it ain’t going to outlive!
USDC’s development comes principally due to the rise in crypto buying and selling quantity, a push from Binance, and — dare we are saying it — a bit of fine ol’ usual branding.
(Circle, who run USDC, are wildly clear about their reserves and audits — which we love!!).
Alright, now you understand!
.gif?format=1500w&description=All%20Stablecoins%20Cost%20the%20Same%E2%80%A6So%20What%E2%80%99s%20Pushing%20Everyone%20to%20Adopt%20USDC%3F){kind=link}