The stablecoin from Goldman Sachs-backed cryptocurrency firm Circle has clocked some impressive growth numbers since its launch three weeks ago.
Circle, the Goldman Sachs backed blockchain company, launched its stablecoin USD Coin (USDC) almost three weeks back. USDC is pegged to the US dollar one-to-one. In an update published earlier on Monday on its official blog, Circle claims that the digital asset has seen good traction since its launch.
According to the post:
Since it was launched three weeks ago, USD Coin (USDC) has seen significant increases in daily volumes, growth in its global market cap, and widespread adoption across the crypto industry. These trends have accelerated because market participants are seeking a more transparent and compliant USD token.
The firm claims the below performance numbers:
- Trading volume on exchange platforms in the last 24 hours has surpassed the volume for all of last week, with 2,000% growth week over week
- Market capitalization has grown 85% in the last week, now surpassing $25M
- More than 40 companies across the crypto ecosystem support USDC
Tether on Shaky Ground
What has helped USDC and other stablecoins gain traction this week is the FUD (Fear Uncertainty Doubt) surrounding the fake news of many exchanges – including Binance – delisting Tether (USDT).
The rumor caused panic earlier this week leading holders of USDT to liquidate their assets causing a drop in its price by $0.05. Tether, the most popular stablecoin, currently amounts for over 98% of all trading volume of all stable cryptocurrencies.
In contrast, other stablecoins – including USDC, TrueUSD (TUSD), Gemini dollar (GUSD) and Paxos (PAX) – went up in price by over 5% accompanied by a surge in trading volume. USDC price went as high as $1.11. At the time of trading, the price of the cryptocurrency is hovering around $1.02 with a market cap of $24.3 Million.
Tether has been the subject of criticism from various quarters since last year due to the opacity in its functioning.
Growing Stablecoin Market
Since its launch on September 26th, USDC has been supported by 10 new exchanges and firms, taking the total to over 40. BitPay, the largest cryptocurrency-based payments processor also has announced support for USDC and GSDC. Merchants using BitPay’s service will now be able to receive settlements in either of the stable coins in addition to Bitcoin and Bitcoin Cash.
This year has seen a lot of action and projects on stablecoins. Live Bitcoin News recently reported on the growing interest, use-cases, and developments in the space.
Stablecoins like USDC that are regulated (the asset complies with US money transmission laws), and at the same time are transparent in operations, are likely to find favor with traders and investors. Being supported and audited by credible third-party banks and auditors surely inspires the confidence of the community.
Do you think that USDC is more trustworthy than USDT? Let us know in the comments below.
Images courtesy of Pixabay, Shutterstock