The total market value of stablecoin USDC Coin (USDC) in circulation surpassed the $ 3 billion mark. It is five times higher than at the beginning of the year.
This brings the total stablecoin supply to roughly $ 14.4 billion.
Since its launch in 2018, USDC has carried out more than $ 230 billion in transactions. And as Jeremy Allaire, CEO of USDC issuer Circle, convinced, the $ 1 trillion capitalization is only a matter of time.
According to him, the achievement of this significant milestone contributed to expansion of USDC use cases and growing support for the protocol by hundreds of different companies and institutional investors, as well as a large number of users.
According to Allaire, the consortium of issuers Center has focused on working with the entire ecosystem – wallets, exchanges, decentralized finance services.
The entry of the $ 3 billion USDC cryptocurrency into the market coincides with the explosive growth of the altcoin market, which indicates a decline in the dominance of Bitcoin (BTC).
Bitcoin dominance is currently 47.79%, the lowest since August 2018, as Ethereum (ETH) and other altcoins continue to rise. In early January, Bitcoin’s dominance was over 70% and has been steadily declining since then.
What is USDC?
USD Coin is a cryptocurrency that is better known by the name USDC. It is presented in real dollars, but digitally. In the crypto world, such a currency refers to stablecoins – a coin that depends on fiat money and its rate.
Today, USDC is used in borrowing and lending operations, trade finance, corporate treasury, security tokens. And also serves as “safe digital dollars” for residents of Latin America, Asia and Africa.
The Center blog states that businesses and financial institutions in USDC attracted by instant settlement, low-cost global and fungible transactions, their irreversibility, lower counterparty risk, and 24/7 availability.
Allaire is confident that the time has come for CBDC and stablecoin standards to become more active in the business models of fintech companies and banks. Further adoption of Bitcoin will be connect to the integration of stablecoins into the financial system.
CEO of Circle believes that USDC will gain more traction in financial contracts, tokenized funds, and “new” asset markets such as CeFi and DeFi.
Allaire sees the opportunity to add USDC support to popular digital wallets around the world. It will increase its user base to several billion. Companies can be more active in incorporating stablecoin into smart contracts, trading and blockchain-based settlements. All this provides good prerequisites for capitalization growth to $ 1 trillion, he convinced.
CEO of Circle has called on US President Joe Biden not to create barriers to innovation. So, he asked the rest to fight to preserve an open, uncensored and decentralized economic infrastructure.
As a reminder, the Visa global payment network joined the USDC in early December. In the future, this will allow issuing cards with the ability to directly accept this stablecoin as payment.
At about the same time, the US Senate introduced a bill. To oblige stablecoin issuers to obtain banking licenses and regulatory approval. Allaire called it “a huge step back”.