Stablecoins are the lifeblood of the cryptocurrency industry. Not only are they traded in large quantities against Bitcoin and altcoins. They also power the majority of DeFi solutions, with USDC making rather big strides.
The Ongoing Rise of USDC
In the cryptocurrency space, all eyes are on Tether’s USDT. It is by far the most liquid pegged currency, and one that keeps growing in market cap. Not that long ago, it even overtook Ripple’s XRP in market valuation. Considering how every USDT is valued at just $1, there are plenty of Tether coins in circulation across a handful of different blockchains.
Looking at the other stablecoins on the market, things are a bit different. A fair few of them struggle to reach a $250 million market cap. Their demand simply isn’t high enough to warrant much demand. Ever since DeFi solutions were introduced, that situation has begun to change. A welcome turn of events, as stablecoins are a solid “investment” when exploring DeFi.
One currency noting significant growth in recent months is USDC. This particular currency has seen its market cap explode to over $1.7 billion. A remarkable trend, considering how it was a few weeks ago when $1 billion was reached. Following this growth, USDC has become one of the more prominent stablecoins on the market today.
What is interesting is how the market cap of USDC keeps rising non-stop. Whether Bitcoin rises or falls, it doesn’t affect the demand for this currency whatsoever. A clear indication that its demand lies elsewhere completely. Quadrupling in market cap since March 2020 coincides with the explosive growth of decentralized finance.
Achieving a $2 Billion Cap
All things considered, there is no sign of slowing down for USDC. That in itself is quite telling, considering how many stablecoins there are today. Most of them are pegged to the US Dollar, giving traders ample choices to explore. However, it is a matter of time until the USD Coin market cap surpasses the $2 billion mark.
Going over the market cap rankings, USDC now ranks ahead of Stellar and Monero, to name a few. Overtaking Tezos will not pose much of a challenge either, and TRON is well within reach. That would bring two big stablecoins in the market cap top 15. A trend no one expected months ago, but one that is slowly drawing near today.
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