TL;DR
USDC’s market cap is up 14.3% since December 1, 2023 (sitting at ~$28B) due to an general 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 nicely currently.
Like, its market cap is up 14.3% since December 1, 2023 (sitting at ~$28B).
On the flip aspect, USDT, the most important stablecoin on the block, is simply 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:
Stablecoins are all just about the identical.
They’re meant to be a type of crypto which has nearly no volatility by pegging the coin towards some exterior foreign money (e.g. USD, EUR, GBP).
On this occasion: USDC is pegged to (you guessed it) the US greenback — so 1 $USDC ought to at all times equal $1 USD.
So in the event that they’re all principally equal, what’s the actual distinction?
Actually, it is so simple as availability and liquidity.
Extra persons are shopping for USDC → which suggests extra persons are utilizing/buying and selling it → making it extra extensively out there.
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 excellent ol’ original branding.
(Circle, who run USDC, are wildly clear about their reserves and audits).
Alright, now you recognize!
