The USDC of Circle, the second largest stablecoin on the market, has reached record market capitalization of more than $ 56 billion this week while the growth of stablescoin has shown signs of rejoice.
The USDC added $ 10.2 billion to its market capitalization in the last month, mainly motivated by the increase in solara -based trading volumes, according to Artemis data. This represents more than double the growth of $ 4.6 billion in the USDT in Tether, the largestcoin in the market and the largest competitor in the circle, during the same period. The USDT still dominates Stablecoin space with a market capitalization of $ 142 billion.
With the latest growth push, the USDC exceeded its 2022 peak and completely recovered from the 2023 regional bank crisis 2023, which brought a blow to the cryptocurrency. At the time, Circle held part of the Stablecoin reserves in bank deposits at Silicon Valley Bank, which underwent a bank race and led USDC to temporarily lose its ankle towards the US dollar. Many token holders fled to the USDT, helping Tether to exceed its peak market capitalization 2022 in May 2023.
Stablecoins are a special type of cryptocurrencies with prices anchored to an external asset, mainly in the US dollar. The USDT and the USDC are widely used to negotiate on crypto exchanges and serve as a liquidity key. Thus, their expansion supply is a key indicator of investors’ demand and overall health of cryptographic markets.
After a period of lukewarm action in December and early January, the growth of the USDT and the USDC has accelerated in recent weeks, according to data. The previous growth thrusts, as between October and early December and October 2023 to April 2024, coincided with high rallies of Bitcoin (BTC) and Altcoin prices.
The acceleration of the growth of stablescoin, although it is only one of the factors influencing the markets of cryptography, offers a positive signal for the overall health of the market in the midst of the opposite winds and consolidation prices.
