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Wednesday, May 12, 2021

Largest one-day USDC impression in history marks weakest Bitcoin dominance in years

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More USD Coin (USDC) were printed on April 30 than at any time in the existence of the dollar-backed stablecoin, as just over $ 3 billion was minted in one fell swoop.

New USD coins are minted every time a client exchanges their US dollars for stablecoin, and Friday’s inflow was over 26% of its market cap at the time.

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The sudden arrival of USD 3 billion of USDC in the cryptocurrency market coincides with a surge in the altcoin market, evidenced by the descent of Bitcoin (BTC) to its lowest market cap in two and a half years.

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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 capitalization increase massively from the start. of the year. By early January, Bitcoin’s dominance was perched over 70% and has been declining steadily since.

The value of USD Coin in circulation rose from $ 11 billion to nearly $ 14.4 billion on Friday, meaning that USD Coin now has a market cap of 28% of the most widely used stablecoin, Tether (USDT). , of which more than 50 billion are in circulation. As of August 2020, USD Coin held a market cap of one tenth that of Tether, suggesting that traders have found definitive use of the USDC, possibly at the expense of the USDT.

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Circle, which founded USD Coin in combination with popular cryptocurrency exchange Coinbase, recently announced that it has tapped New York-based Signature Bank to provide support for USD Coin with appropriate reserves. USD Coin would be backed by a mix of cash and short-term US Treasury bonds.