The winds of change are sweeping through the cryptocurrency market, promising a bullish era as it steps into a new phase of its market cycle. Amid this transformative journey, the USD Coin (USDC), the second-largest stablecoin by market cap, has emerged as a towering force, scaling remarkable heights.
Buckle up as we delve into the riveting resurgence of USDC, where liquidity takes center stage, outshining its coin competitors.
Since December 1, 2023, the USDC has not just grown; it has skyrocketed, experiencing a formidable surge of 14.3%, equivalent to an impressive $3.5 billion. This surge propels its total market cap to a commanding $28 billion, leaving its largest stablecoin counterpart, Tether (USDT), trailing behind with an 8.7% growth during the same period.
Understanding the Catalysts
Analysts attribute the meteoric rise of USDC to the surge in both retail and institutional demand within the cryptocurrency market. A notable catalyst in this upward trajectory is the launch of spot Bitcoin ETFs in the United States, a move that has orchestrated significant capital inflows into the stablecoin.
Also Read: Tether to Soon Be Controlled by US Authorities? JPMorgan Sounds Alarm
Beyond the shores of the United States, USDC is making waves on the global stage. Remarkably, the stablecoin has notched up a 5x increase in its share of spot and derivatives activity, accounting for a modest 4% of total centralized exchange volumes worldwide.
The symbiotic partnership between USDC issuer Circle and crypto exchange Coinbase stands as a linchpin in the resurgence of this stablecoin. The ripple effects of Coinbase’s international expansion, coupled with the strategic relisting of USDC trading pairs on Binance, have further fueled the soaring ascent of USDC.
USDC’s resurgence can be correlated with Bitcoin’s rally, primarily driven by strong U.S. investor demand. USDC tends to be more popular among U.S. traders, while Tether dominates in regions like Asia, Africa, and Latin America, particularly on offshore exchanges like Binance.
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