USDC Resurgence: Coinbase Highlights Rapid Growth and Global Expansion

Coinbase's report reveals the resurgence of USDC, the second-largest stablecoin by market cap, with increasing liquidity and usage worldwide, particularly outside the U.S. This surge in demand has led to a notable increase in supply, marking a significant milestone for the stablecoin.

USDC's supply surges, outpacing USDT, fueled by increased demand from investors

According to analysts David Duong and Li Liu, USDC's supply has surged by 14.3% or over $3.5 billion since December 1, 2023, reaching a total market cap of $28 billion. In comparison, USDT, Tether's primary rival, experienced a more modest 8.7% growth over the same period, boasting a market cap of $98 billion.

The authors attribute USDC's liquidity surge to heightened demand from both retail and institutional investors, coinciding with the launch of spot Bitcoin ETFs in the U.S. This influx of fresh capital has contributed to the stablecoin's growing prominence in the cryptocurrency market.

Expanding Presence in Non-U.S. Markets

USDC is increasingly gaining traction in non-U.S. markets, with its share of spot and derivatives activity witnessing a fivefold increase. Despite accounting for only 4% of total centralized exchange volumes (CEX) globally, USDC's expanding presence underscores its growing relevance beyond U.S. borders.

Catalysts for Growth

The growth in USDC's liquidity can be attributed to multiple factors, including the initiation of Coinbase's international exchange and the relisting of USDC trading pairs on Binance, a leading rival exchange. These developments have facilitated greater accessibility and trading options for users, contributing to USDC's resurgence.

USDC's Issuer and Backing

USDC is issued by Circle, a company backed by Coinbase, highlighting the interconnectedness of major players within the cryptocurrency ecosystem. This backing further reinforces USDC's credibility and stability in the market, bolstering investor confidence in the stablecoin.

USDC's Remarkable Comeback

The resurgence of USDC signifies a significant milestone in the stablecoin's journey, characterized by rapid growth, increasing liquidity, and expanding global presence. As USDC continues to establish itself as a key player in the cryptocurrency market, its ability to cater to both retail and institutional demand underscores its relevance and potential for further growth in the future.