USDC Treasury is minting another 10,000,000 USDC as Bitcoin (BTC) continues to hold the $10,000 price level.
The second-largest stablecoin is expanding its circulating supply further as it injects another 10,000,000 USDC into the cryptocurrency. The $10M boost might bring the market relief after bleeding most of the gains seen earlier today.
10,000,000 #USDC (10,000,000 USD) minted at USDC Treasury
— Whale Alert (@whale_alert) February 19, 2020
The replies to the news were largely optimistic and bullish. Many expect the newly-issued USDC to further placate the choppy market and ensure the $10,000 price point becomes support.
— Tomasz (@Tomasz99469827) February 19, 2020
Stablecoins have had an eventful 2020 thus far. Last month, BeInCrypto reported that some $6M in value will soon be entering the market via stablecoins. Tether (USDT) is expectedly going to make the most of the pie, but USD Coin has been quickly increasing its value proposition.
The stablecoin project, backed by major players like Coinbase and Circle, has seen an explosive rise in 2019 and it’s clear it wants to keep up this momentum now that we’re in 2020. Earlier this month, BeInCrypto reported that USDC Treasury issued another $10M after a very active month in January.
Could this latest batch of USDC be enough to calm markets? It’s unlikely, but it’s yet another cash injection in a market that seems to be building up momentum towards Bitcoin’s halving event in 2020. Although stablecoin issuings generally correlate with market growth, they must be looked at cumulatively.
USDC issuings in the past two months have topped $50M and don’t look like they’ll be slowing down, especially if the asset is looking to disrupt Tether’s dominance over the industry. It’s a tall order and still a long way away from being realized. At the time of writing, USDC’s $441M market capitalization is only a small fraction of Tether’s total market value of $4.6 billion.