USD Coin [USDC], a stablecoin launched by Coinbase and Circle, has hit an outstanding milestone in terms of market cap.
Today on 3rd June, USDC market cap broke the $1 Bln threshold for the primary time since the stablecoin was launched earlier in the month of October 2018. Consistent with data from CoinMarketCap, the coin has seen sharp growth since March 2020.
While announcing the news on Thursday, the Centre Consortium — a corporation co-founded by Circle and Coinbase — highlighted variety of things that contributed to USDC’s notable growth. Consistent with Centre, the demand for USDC in 2019 was mainly driven by the progress of the decentralized finance, or DeFi ecosystem.
Major Developments Pushing Sharp Growth Of USDC
Centre outlined 3 major developments that pushed the sharp growth of USDC: the Covid-fueled financial crisis, the increased demand for low-cost transfers among businesses globally, as well as the impact of massive growth within the Compound protocol, a major DeFi project. Centre added that it anticipates more growth in 2020:
“We expect USDC to continue expand rapidly throughout 2020 and help fulfill Centre Consortium’s mission of building an open standard for money on the web.”
Huge Growth Within The Stablecoin Market
USDC’s progress comes in line with overall growth within the stablecoin market. Tether, the leading USD-pegged stablecoin, touched over $10 Bln market cap earlier on 1st July – a 144% growth since the beginning of 2020. The news came soon after Tether overtook Ripple [XRP] to primarily become as the 3rd largest asset by market cap in March.