USD Coin (USDC) is witnessing aggressive week over week growth according to Circle co-founder and CEO Jeremy Allaire.
USDC has increased its overall market cap by almost seven times from $469 million to over $3.27 billion in 2020.
In addition, USDC is also seeing aggressive week over week growth. Circle co-founder and CEO Jeremy Allaire recently stated on Twitter:
“Just a week ago we shared that USDC had crossed 3 billion in circulation. We’re now well over 3.3 billion across chains, 10% week/week growth. Growing share an adoption!”
In the last week alone, USDC added almost as much supply to its token than was available in all years prior.
USDC in a Nutshell
USD Coin is an ERC-20 stablecoin built on the Ethereum network that is pegged to the U.S Dollar.
The cryptocurrency was created in collaboration between Circle and Coinbase, two leading players in the cryptocurrency financial services sector.
As the 12th largest cryptocurrency by market capitalization, USDC is used often. It has a growing user base that facilitates trade without having to exit holdings into fiat currency.
What Are Stablecoins?
Stablecoins are cryptocurrencies that attempt to provide users with all the decentralized benefits of blockchain and the price stability that fiat currencies offer.
With cryptocurrencies like Bitcoin or Ethereum, the value may be seen as largely speculative and, therefore, quite volatile. With stablecoins such as USDC, the value is pegged with the US dollar on a 1:1 basis.
To achieve this, each token issued must have a corresponding dollar kept in a reserve fund. Firms routinely audit USDC’s cash reserves to verify that the company has enough reserve dollars for each USDC.
Stablecoin’s have many uses. They can act as an intermediary so a user can trade out of volatile crypto without having to move directly into fiat. They can also be used to preserve and transfer value or pay for goods or services.
Regularly audited stablecoins claim that users can remain assured that the coins have equal value backing, allowing them to act as a digital proxy for the hard underlying asset.
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