Stable coins have dominated 2020 and are now ready for 2021 to be popular. Last year, the market value of fiat stablecoins increased from $ 5 million to $ 27 billion. Currently, the market cap of stablecoin has exceeded $ 30 billion, according to CoinGecko.
While Tether (USDT) continues to be the king of stablecoins with a market capitalization of $ 22.75 billion and a transaction volume of $ 20.60 billion, Coinbase and Circle’s USDC token is fast behind. USDC manages a volume of $ 693 million with a market value of $ 4.21 billion.
USDC was printed about 1 billion in December compared to just 2 billion USDT.
In December 2019, the market value of USDC was $ 500 million, which increased to $ 1 billion in July 2020.
Pete Kim, who helped create USDC 2.0, said: “USDC’s growth in 2020 was largely driven by the growth of Decentralized Finance (DeFi), where USDC became the number one fiat-backed stablecoin preferred by both users and developers in the Coinbase Wallet. continues. USDC acts as a medium of exchange between different protocols, ”he added.
Coinbase recently announced the latest version of USDC, which is “overdue for an upgrade” according to Kim.
Stablecoins increase liquidity in the cryptocurrency market and make trading faster and cheaper.
There has been an interesting trend in the market regarding these fiat-based crypto assets. While digital assets such as BTC and ETH moved from exchanges for HODLing, the stable coin reserves of these cryptocurrency trading platforms reached ATH at 3.137 billion, up from 1.3 billion in August, according to the Crypto Quant data source.
Binance’s stablecoin BUSD stock exchange reserves also reached ATH with 327 million BUSD in the last three weeks.