What is USDC?
Created by Coinbase and Circle, USD Coin is a lot like Tether (USDT) as it’s referred to as a stablecoin. That means it is pegged to the US dollar, which is held in a bank account, and is always worth at least $1 when you swap it. USDC is an Ethereum token, therefore any Ethereum based wallet can store it. The popular coin was designed to let your US dollars move globally from your wallet to other exchanges, businesses, and people.
Tether vs USDC
Currently, Tether (USDT) is king when it comes to stablecoins, however since its creation last year, USDC has soared up the ranks currently in 23rd place, making it the second-largest stablecoin around. In a recent interview by Tether’s co-founder, it was admitted that the stablecoin is not backed by the amounts of USD that they claim, unlike USDC. This news has created controversy around USDT and the need for another stablecoin has increased dramatically.
With Coinbase being a trusted company within the industry, it is no surprise that USDC has already grown so much in only a year. Utilising Coinbase and Circle’s name, USDC could become the name brand for stablecoins soon as the two companies have a solid foundation, large userbase, and unlimited marketing capabilities. The bank account that is used to hold the USDC pairing is audited on a regular basis, creating a trusted environment.
Through all this success, USDC still has a lot of catching up to do when it comes to 24-hour volume. Currently at the time of writing, USDC has a 24h volume of $148 million compared to Tether’s $18 billion. Although the controversy surrounding Tether, these numbers show that its miles ahead of any other stablecoin and isn’t slowing down.
Do you think USDC will someday overtake a currently USDT dominated world? Comment your opinions below.