All Stablecoins Cost the Same…So What’s Pushing Everyone to Adopt USDC?

TL;DR

  • USDC’s market cap is up 14.3% since December 1, 2023 (sitting at ~$28B) thanks to an overall rise in crypto trading volume, and a push from Binance.

Full Story

So, we know no one asked, but, USDC has been doing super well lately.

Like, its market cap is up 14.3% since December 1, 2023 (sitting at ~$28B). 

On the flip side, USDT, the biggest stablecoin on the block, is only up 8.7% (still maintaining a cool $98B market cap though).

We thought “Huh, why is USDC doing better when all stablecoins are basically the same?”

So for funzies, let’s dive in:

Most stablecoins are pretty much the same. 

They’ve been created to be a form of crypto which has almost no volatility, by being pegged against some outside currency (e.g. USD, EUR, GBP). 

In this instance: USDC is pegged to (you guessed it) the US dollar — so 1 $USDC should always equal $1 USD.

So if they’re all basically equal, what’s the real difference?  

Honestly, it's as simple as availability and liquidity

More people are buying USDC → which means more people are using/trading it → making it more widely available.

Which is the name of the game for stablecoins — cause if no one will accept your coin, it ain’t going to survive!

USDC’s growth comes mostly thanks to the rise in crypto trading volume, a push from Binance, and — dare we say it — a bit of good ol’ fashioned branding.

(Circle, who run USDC, are wildly transparent about their reserves and audits — which we love!!).

Alright, now you know!

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Web3 and crypto news, translated into plain English.

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