On April 30, more USD Coin (USDC) was printed than ever before in the existence of the dollar-backed stablecoin, as just over $ 3 billion was minted at once.
The new USD coins are minted every time a customer exchanges their US dollar for the stablecoin, and the inflow on Friday was more than 26% of their market cap at that point.
The sudden arrival of $ 3 billion worth of USDC in the cryptocurrency market coincides with a rapid altcoin market evidenced by the decline of Bitcoin (BTC) to its lowest market cap dominance in two years. You one and a half.
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 a sharp rise in market capitalization since the turn of the year. At the beginning of January, Bitcoin dominated over 70% and has steadily declined since then.
The value of USD coins in circulation rose from USD 11 billion to nearly USD 14.4 billion on Friday, meaning USD coins now have a market cap equal to 28% of the most widely used stable coins, tether ( USDT), of which more than 50 billion are in circulation. As of August 2020, USD Coin had a market cap only a tenth of Tether’s, suggesting that traders have found a definite use for USDC, possibly at the expense of USDT.
Circle, which founded USD Coin in partnership with well-known crypto exchange Coinbase, recently announced that it had reached out to New York-based Signature Bank to secure USD Coin with adequate reserves. According to reports USD Coin is backed by a combination of cash and short-term US Treasuries.