Coinspeaker
Circle’s USDC Registered 14.3% Growth Since December to Date Compared to 8.7% for Tether’s USDT
The mainstream adoption of volatile crypto assets requires the stablecoins sectors to thrive. Cryptocurrency investors need reliable and liquid stablecoins to trade and take profits in the highly volatile crypto industry. As of this report, the stablecoins market recorded nearly 90 percent of the entire crypto daily trading volume. Furthermore, more investors are preparing to enter the crypto industry in preparation for the anticipated altseason.
Notably, different types of stablecoins have emerged over the years, but a few have passed the test of time. The most popular stablecoins are backed by fiat currencies, while less popular ones are algorithmic ones.
Circle’s USDC on the Rise
Circle Internet Financial, a stablecoins-focused company with USDC as its flagship product, has grown to a top-tier stablecoins issuer over the past few years. Backed by Coinbase Global Inc (NASDAQ: COIN), Circle’s USDC is used to provide liquidity to most of the crypto trades, despite the notable competition from Tether’s USDT.
Amid the mainstream adoption of digital assets fueled by institutional investors, Circle’s USDC has registered a higher growth rate than Tether’s USDT. According to the latest market data provided by Coingecko, USDC had a total valuation of about $24.4 billion on December 1, 2023, but has since grown to around $28.5 billion as of this publication. The USDC growth in the past three months represented a change of about 14.3 percent.
On the other hand, USDT has moved from a market cap of around $89 billion on December 1, 2023, to around $98 billion on Tuesday, which represents a growth of about 9 percent.
“USDC’s increase in liquidity reflects the overall pickup in both retail and institutional demand as crypto has moved into a new phase of its market cycle after the launch of spot bitcoin ETFs in the US, contributing to fresh capital inflows,” analysts David Duong and Li Liu, noted.
Key Growth Factors
The notable growth for Circle has been inspired by the mainstream adoption of digital assets by institutional investors in the past few months. Earlier last month, Circle filed with the United States Securities and Exchange Commission (SEC) seeking to go public through an initial public offering (IPO).
As of this writing, Circle has partnered with dozens of payments companies and different businesses to enable the use of stablecoins. Some of the notable Circle partners include MoneyGram, Stripe, Visa Inc (NYSE: V), and BlackRock Inc (NYSE: BLK), among many others.
Notably, Circle recently partnered with Nubank to increase digital dollar access in Brazil. The company also partnered with SBI Holdings late last year to enhance digital dollar adoption in Japan. Meanwhile, USDC is highly regulated and largely backed by liquid cash equivalents, which include US treasury bonds.
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Circle’s USDC Registered 14.3% Growth Since December to Date Compared to 8.7% for Tether’s USDT
Source: https://www.coinspeaker.com/circle-usdc-growth-tether-usdt/