Circle’s USDC Surges Past Tether in Epic Comeback

The post Circle’s USDC Surges Past Tether in Epic Comeback appeared first on Coinpedia Fintech News

As the cryptocurrency market is expected to enter into a bullish era soon as it undergoes a new phase in its market cycle, the resurgence of USD Coin aka the USDC, the second-largest stablecoin by market cap, is gaining significant heights. Recent reports show its impressive surge in liquidity, surpassing its competition coins.

USDC’s Rapid Expansion

Since December 1, 2023, USDC has experienced a remarkable growth in supply, witnessing a surge of 14.3% or over $3.5 billion. This surge has propelled its total market cap to $28 billion, outpacing the 8.7% growth observed in the largest stablecoin, Tether (USDT), during the same period.

Analysts justify USDC’s growth to the overall increase in both retail and institutional demand within the crypto market. The launch of spot Bitcoin ETFs in the U.S. is identified as one of the main catalysts that has significantly contributed to huge capital inflows. 

International Presence

USDC is not just gaining momentum within the U.S., but it is also establishing a larger presence in non-U.S. markets. The stablecoin has notably increased its share of spot and derivatives activity by 5x, although representing only 4% of total centralized exchange volumes globally.

The partnership between USDC issuer Circle and crypto exchange Coinbase plays a pivotal role in its resurgence. Moreover, the international expansion of Coinbase’s exchange and the relisting of USDC trading pairs on Binance has further fueled the stablecoin’s surge.

Bitcoin’s Rally and Regional Preferences

USDC’s resurgence can be correlated with Bitcoin’s rally, primarily driven by strong U.S. investor demand. USDC tends to be more popular among U.S. traders, while Tether dominates in regions like Asia, Africa, and Latin America, particularly on offshore exchanges like Binance.

In short, the resurgence of USDC, especially its growth in non-U.S. markets is making substantial comeback for the stablecoin.