All Stablecoins Cost the Same…So What’s Pushing Everyone to Adopt USDC?

TL;DR

• USDC’s market cap is up 14.3% since December 1, 2023 (sitting at ~$28B) due to an general rise in crypto buying and selling quantity, and a push from Binance.

Full Story

So, we all know nobody requested, however, USDC has been doing tremendous properly recently.

Like, its market cap is up 14.3% since December 1, 2023 (sitting at ~$28B). 

On the flip aspect, USDT, the most important stablecoin on the block, is just up 8.7% (nonetheless sustaining a cool $98B market cap although).

We thought “Huh, why is USDC doing higher when all stablecoins are principally the identical?”

So for funzies, let’s dive in:

Most stablecoins are just about the identical. 

They’ve been created to be a type of crypto which has virtually no volatility, by being pegged in opposition to some outdoors foreign money (e.g. USD, EUR, GBP). 

On this occasion: USDC is pegged to (you guessed it) the US greenback — so 1 $USDC ought to at all times equal $1 USD.

So in the event that they’re all principally equal, what’s the actual distinction?  

Truthfully, it is so simple as availability and liquidity. 

Extra persons are shopping for USDC → which suggests extra persons are utilizing/buying and selling it → making it extra broadly out there.

Which is the secret for stablecoins — trigger if nobody will settle for your coin, it ain’t going to outlive!

USDC’s progress comes largely due to the rise in crypto buying and selling quantity, a push from Binance, and — dare we are saying it — a bit of fine ol’ customary branding.

(Circle, who run USDC, are wildly clear about their reserves and audits — which we love!!).

Alright, now you realize!