TL;DR
USDC’s market cap is up 14.3% since December 1, 2023 (sitting at ~$28B) because of 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 properly currently.
Like, its market cap is up 14.3% since December 1, 2023 (sitting at ~$28B).
On the flip facet, USDT, the largest 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 virtually no volatility by pegging the coin towards some exterior 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?
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 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 because of the rise in crypto buying and selling quantity, a push from Binance, and — dare we are saying it — a bit of excellent ol’ customary branding.
(Circle, who run USDC, are wildly clear about their reserves and audits).
Alright, now you understand!
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