The largest USDC coin in any day in history marks Bitcoin’s lowest dominance in years

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.

The largest USDC coin in any day in history marks Bitcoin’s lowest dominance in years
The largest USDC coin in any day in history marks Bitcoin’s lowest dominance in 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 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.

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