TL; DR
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USDC’s market cap has risen 14.3% (~$28 billion) since December 1, 2023, thanks to an overall increase in crypto trading volume and a boost from Binance.
Full story
So we know no one asked, but USDC has been doing super well lately.
For example, the market capitalization has increased by 14.3% since December 1, 2023 (~$28 billion).
On the other hand, USDT, the largest stablecoin on the market, is up only 8.7% (but still maintains a market cap of $98 billion).
We thought, “Huh, why does USDC do better when all the stablecoins do In principle the same?”
So for the funzies, let’s dive in:
Stablecoins are almost all the same.
They are intended as a form of crypto that has virtually no volatility by pegging the coin to an external currency (e.g. USD, EUR, GBP).
In this case: USDC is pegged to (you guessed it) the US dollar – so 1 $USDC should always equal $1 USD.
So if they are all basically the same, what is the Real difference?
Honestly, it’s as simple as availability and liquidity.
More people are buying USDC → which means more people are using/trading it → making it more widely available.
That’s the name of the game for stablecoins – because if no one accepts your coin, it won’t survive!
USDC’s growth is mainly due to the increase in crypto trading volume, a boost from Binance and – dare we say it – a bit of old-fashioned branding.
(Circle, which runs USDC, is extremely transparent about their reserves and audits).
Okay, now you know!