On April 30, more USD Coin (USDC) was pressed than ever in the dollar-backed stablecoin’s existence, as just over $ 3 billion was struck in one fell swoop.
New USD coins are struck when a customer exchanges their US dollars for the stablecoin, and Friday’s inflow was over 26% of their market cap at the time.
The sudden entry of $ 3 billion in USDC into the cryptocurrency market coincides with a surging altcoin market, evidenced by Bitcoin’s (BTC) decline to its lowest market cap in two and a half years.
Bitcoin’s dominance of 47.79% on Friday was the lowest since August 2018 as Ethereum (ETH), Binance Smart Chain (BSC), Cardano (ADA) and others saw their own market cap soar since the turn of the year. In early January, Bitcoin’s dominance was over 70% and has steadily declined since then.
The value of USD Coin in circulation rose from $ 11 billion to nearly $ 14.4 billion on Friday, meaning USD Coin now has a market cap of 28% of the most widely used stablecoin, Tether (USDT), of which there are more than 50 billion are in circulation. In August 2020, USD Coin had a market cap of just one-tenth that of Tether, suggesting that traders have found definitive use for USDC, perhaps at the expense of USDT.
Circle, which founded USD Coin in conjunction with well-known cryptocurrency exchange Coinbase, recently announced that it has reached out to New York-based Signature Bank to ensure support for USD Coin with proper reserves. USD Coin is reportedly backed by a mix of cash and short-dated US Treasuries.