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Circle’s USDC Market Cap Surpasses $28 Billion
The market capitalization of Circle’s USDC has surpassed $28 billion, showing a gradual increase from Q4 2023, particularly driven by wider institutional investments. A new Coinbase report highlights a resurgence in the USDC market following the general market upturn and growth in non-U.S markets.
USDC Market Performance
According to the report, the USDC stablecoin has gained $3.5 billion, representing a growth of over 14% since December 1, 2023. This significant increase has pushed the market capitalization of the asset above $28 billion. Additionally, at present, the total market cap of the asset stands at $28.5 billion with trading volumes of $8.6 billion, marking a 144% increase in the last 24 hours.
Change in Narrative around USDC
The narrative around USDC has been shifting, especially after experiencing a drop in the first three quarters of 2023 before stabilizing in the last quarter. This was associated with the asset losing its dollar peg due to exposure to Silicon Valley Bank (SVB) in March, leading to a decline to as low as 87 cents with approximately 8% of its reserve in SVB.
Rise in International Presence
USDC’s presence has surged outside the United States, particularly driven by increasing derivatives activities on some exchanges. Since the start of 2023, USDC’s share of spot and derivatives activity has increased by almost 5x, although it still stands at a relatively low 4% of total CEX volumes globally.
Circles Partnerships and Exchange Incentives
The launch of Coinbase International Exchange and a market maker incentive program have significantly boosted USDC adoption in international markets. Furthermore, USDC’s re-listing on Binance added momentum to its growth. The asset’s market share on centralized exchanges recorded a 10% increase as Coinbase raised interest rates on the asset, leading to longer holding periods by crypto users. Circle, USDC’s issuer, has also entered into multiple partnerships with financial institutions in Japan and Singapore.
USDC Outperforms Tether
USDC’s recent rise has outpaced USDT, the largest stablecoin by market capitalization. While USDC recorded a 14% growth, USDT posted an 8.7% increase from Dec 1. However, USDT remains the stablecoin leader with a 71% market dominance and $97 billion market share.
The stablecoin market cap hit $140 billion for the first time since 2022 as investments trickle into digital assets following spot Bitcoin (BTC) ETF approval.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
