USDC, the stablecoin supported by a consortium that includes Circle Internet Financial Ltd. and Coinbase Inc. has seen more demand than any other recently launched dollar-backed cryptocurrency, including the Gemini Dollar, with a total of $127.4 million of the coin issued since its September debut.
USDC Is Grabbing Massive Amounts of Investment Attention
Stablecoin USD Coin (USDC) could be on its way to becoming the most popular dollar-backed digital currency to date, as recent figures have shown its incredible popularity among investors on the rise, leaving behind some of the more known stablecoin names such as the Gemini dollar.
According to an Oct. 30 Bloomberg report, more than $127.4 million of USD Coin has been issued since launching September 2018. Citing information from the crypto data tracker Etherscan, Bloomberg also said that the Paxos Standard, introduced the same month as the USD Coin, has garnered $108 million in funds, while Gemini Dollar received nearly $13 million.
The tokens which are pegged to a fiat standard, typically the US dollar, are not thought to be challenged with the same volatility as other cryptocurrency prices – the very reason they’ve been gaining traction in 2018. Increased instability of kingpin cryptocurrencies such as bitcoin and ether has turned many large investors to stablecoins.
However, USDC isn’t the only stablecoin looking to fulfill this newly created demand. There are currently more than 50 stablecoins to date, with more reportedly in the works. With Bitcoin down by more than 50 percent for the year, some traders are parking funds in stable coins, which are being advertised as maintaining parity to the fiat currency they are pegged to while awaiting the next bull run.
The Consortium Backed Stablecoin Unique on the Market
Aaron Brown, a business author, and investor who writes for Bloomberg Opinion said that the USD Coin is the most native to the crypto world, with the least connections to traditional finance. He also added that what makes it different from other coins is that they depend on the business success of the issuers, while USDC can survive on its own.
This is due to the fact that USDC isn’t tied to just one company – it’s backed by a consortium called Centre. The consortium will serve as a platform for users to make deposits from traditional bank accounts, convert fiat currency into tokens issued by members to facilitate transactions and provide the ability to shift back to the greenback.
With the original stablecoin, Tether, having its value frequently deviating from its $1 peg, thus it seems there might be a huge market opening for USDC to fill.
Learn more about stablecoins:
Cover Photo by Elijah Hiett on Unsplash
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