USD Coin (USDC) becomes the fastest growing stable coin as it surpasses a market cap of $1.1 billion in just over 20 months of its launch. USDC was first introduced by an organization named, ‘the Centre Consortium” to establish an open platform for fiat currencies on the internet so that the mass adoption of the fiat-based stablecoins becomes an easier approach.
For this purpose, the Centre Consortium also announced a multi-chain support framework for USDC to enable other blockchain platforms to leverage the foundation.
Certain factors led to the increasing demand of the USDC stablecoin:
- The consistent and rapid growth in the USDC stablecoins can be conferred to the huge demand for digital dollars, owing to the currency volatility caused by the global COVID pandemic situations prevailing across the world. Developing countries are demanding more of a digital stablecoin that is faster, secure, and inexpensive, and USDC meets all these criteria.
- USDC has the potential to allow instant fund transfers at cheaper rates to and from any parts of the world, due to its massive interoperable infrastructure that the business all around the world wants to take advantage of.
- The DeFi (decentralized finance) ecosystem that evolved in 2019 also contributes to the increasing demand of the USDC.
As per reports, currently, there are around 12 billion USD stable coins in circulation, and the on-chain transactions from these stable coins represent the largest volume on blockchain transactions. The increasing trend in the USDC growth trajectory has successfully paved the way for a fully transparent and compliant digital dollar stablecoin.
The Centre Consortium has been putting forth indomitable efforts to enable people all around the world to leverage these upward rising trends and to gain benefits from using USDC. USD coin supports APIs for payments and crypto wallets, and to reap these benefits, businesses are looking forward to implementing innovative financial applications to increase their efficiencies; USD coin is well serving these criteria.
There are also speculations of these on-chain stablecoin transactions to reach a volume of $600 billion by the end of this year. Since its launch, USDC had solidified its position in the crypto market with hundreds of wallets and exchanges using it.