Stablecoins continue to gain traction in the ecosystem, while accelerating the adoption of cryptocurrencies in general. Today we are talking about USD Coin, better known for its USDC label, which has recently been able to climb to 13th in the crypto market.
This escalation is thanks to a growth of more than 100% of its capitalization in a matter of 2 months. It managed to go from $ 1 trillion in early August to $ 2.541 trillion today.
About USD Coin (USDC)
USDC is a stablecoin pegged to the price of the US dollar in a 1 to 1 ratio. For each unit of USDC there is 1 dollar in storage, combined with cash reserves and short-term US Treasuries.
Behind this stable coin is the Center consortium, who affirm that the issuance is carried out by regulated financial institutions.
It is designed with the purpose of fulfilling the role of digital money in the digital age that we are living in, where transactions using cash are less and less common.
Since its launch in 2018, it has been gaining ground and use cases, going beyond a simple tool for those seeking to take refuge from the volatility of cryptocurrencies.
The USDC issuing team indicates that this stablecoin allows companies to receive digital payments, as well as revolutionizing different sectors, mainly finance and decentralized games.
Boom DeFi boosts USD coin
Undoubtedly the main cause of the exponential growth of the increase in the capitalization of USDC, is the massive wave of liquidity injection in DeFi protocols.
One of those DeFi projects that most encouraged the use of USD Coin was Curve Finance, with the launch of its CRV governance token on August 14.
But it is not only Curve who has contributed to the parabolic growth of this stablecoin.
Second data from the firm Flipside Crypto, users of decentralized finance are using USDC to interact with different portocolos.
These users seek to obtain returns through loans on platforms such as Compound and Aave. In other cases, what they seek is to generate profits by providing liquidity in pools such as those provided by Uniswap and Curve.
Even Tether maintains a strong hierarchy among stablecoins, followed by DAI. However USD coin has been gaining ground steadily; Thanks to this, it has managed to position itself as a reference asset in the DeFi.
A recent update to USDC allows users to pay transaction fees in the same stablecoin. With this, the experience is improved by bypassing the gas system that Ethereum owns and reducing network congestion.
Everything seems to indicate that this stablecoin will continue to gain traction inside and outside the DeFi. There is no reason to forecast a negative future, at least not in the short to medium term.