USDC Market Share on the Rise
Date: 2024-01-18 Author: Dima Zakharov Categories: BLOCKCHAIN
USDC Gains Market Dominance
USDC, a popular stablecoin, has been making significant strides in the cryptocurrency market. Bybit, a leading exchange, has become the largest market for USDC, likely due to its introduction of zero-commission trading pairs in February of the previous year.
Another contributing factor to the increase in USDC market share was the relisting of the stablecoin on Binance. This decision came after legal issues arose with Binance USD (BUSD), potentially boosting USDC's presence during that period.
Coinbase's Role in USDC's Growth
Coinbase, the largest cryptocurrency trading platform in the United States, played a crucial role in USDC's ascent. They gradually increased interest rates on USDC from 2% to 6% over the past year, incentivizing platform users to hold the stablecoin.
Additionally, Circle, the issuer of USDC, has established significant partnerships with major financial institutions, including Japanese financial giant SBI Holdings. Circle is also licensed in major jurisdictions such as Singapore, further enhancing the circulation and presence of USDC.
USDC Supply and Challenges
Despite these positive developments, the circulating supply of USDC remains significantly below its historical peak of $45 billion. Circle attributes this decrease to various factors, including high interest rates, regulatory measures, bankruptcies, and direct fraud.
Furthermore, USDC faced significant hurdles last year following the collapse of one of its banking partners, Silicon Valley Bank, leading to a brief loss of its peg to the US dollar and a mass exodus of funds from the digital asset.
Meanwhile, Circle has recently expressed its intention to go public through an initial public offering (IPO), filed with the U.S. Securities and Exchange Commission, indicating its ambitions for the future.
