USDC of Circle hit the Record Market Cap of more than $ 56B as Stablecoin Demand Soars
The USDC of the Circle, the second largest stablecoin in the market, rose to a capitalization of the record market of more than $ 56 billion this week while stablecoin growth showed signs of reaccelerating.
USDC added $ 10.2 billion to its market cap over the last month, driven primarily by rising Solana -based volumes based in Solana, Artemis data shows. That is more than double the $ 4.6 billion USDT growth of Tether, the largest stablecoin in the market and the largest competitor of the market, at the same time. The USDT still manages Stablecoin space with a $ 142 billion market cover.
In the latest spurt growing up, the USDC exceeded 2022 peak and recovered from the 2023 US regional-banking crisis, to face a Serious blow in cryptocurrency. At this time, the Circle held a portion of Stablecoin reserves on the bank deposits at the Silicon Valley Bank, which suffered a bank run and led to the USDC that it temporarily lost its peg in the US dollar. Many token holders fled to the USDT, helping Tether surpass the 2022 peak market capitalization of the market early in May 2023.
Stablecoins are a special type of cryptocurrencies with prices that are anchored to an external possession, mainly in the US dollar. The USDT and USDC are widely used for trading in crypto exchanges and acts as a major source of liquidity. Thus, their expansion of supply is a key indicator of investor demand and overall health of crypto markets.
After a period of Tepid action in December and early January, USDT and USDC growth has accelerated in recent weeks, data is displayed. Previous growth spurts, such as between late October and early December and October 2023 to April 2024, in conjunction with steep bitcoin (BTC) rallies (BTC) and Altcoin prices.
Accelerate the growth of stablecoin, while it is just one of the factors that influence crypto markets, has offered a positive signal for general market health amidst macro headwinds and integration -with those Price.
