Ethereum

USDC

Algorand

Coin

The USD Coin (USDC) market cap is currently at a two-year low, with analysts saying it’s yet to fully recover after <a href="https://crypto.news/usdc-depegs-as-circle-burns-2-34b-in-24-hours/" data-type="link" data-id="https://crypto.news/usdc-depegs-as-circle-burns-2-34b-in-24-hours/">depegging</a> earlier in the year. 
Data from CoinGecko <a href="https://www.coingecko.com/en/coins/usd-coin" target="_blank" rel="noreferrer noopener">shows</a> that USDC has a market value just north of $26 billion — its lowest level since July 2021, when it stood at $25.1 billion. 
The stablecoin is still the sixth largest cryptocurrency by market capitalization, but it has fallen further away, in terms of dominance, from its biggest competitor, Tether (<a href="https://crypto.news/price/tether/" target="_blank" rel="noreferrer noopener">USDT</a>), which is currently valued at $82.7 billion. 
Only a year ago, USDC had a market cap of $56 billion as it consolidated its position as the second-biggest stablecoin. However, in March 2023, amid a regional banking crisis that caused the collapse of <a href="https://crypto.news/silicon-valley-bank-collapsed-here-are-the-companies-affected/">Silico</a><a href="https://crypto.news/silicon-valley-bank-collapsed-here-are-the-companies-affected/" target="_blank" rel="noreferrer noopener">n</a><a href="https://crypto.news/silicon-valley-bank-collapsed-here-are-the-companies-affected/"> Valley Bank</a> (SVB), USDC briefly <a href="https://crypto.news/usdc-records-largest-single-burn-amid-bank-collapse/" data-type="link" data-id="https://crypto.news/usdc-records-largest-single-burn-amid-bank-collapse/">lost</a> its dollar peg following revelations that Circle had kept more than $3 billion of its reserves at SVB. 
Some cryptocurrency market observers think that the decline in USDC may have also been a result of rising <a href="https://crypto.news/bitcoin-often-dips-when-the-fed-raises-rates/" target="_blank" rel="noreferrer noopener">interest</a> rates, which made holding USDC slightly more expensive than holding comparable financial instruments. 
 You might also like: <a href="https://crypto.news/coinbase-to-delist-six-altcoins-including-ooki-and-vgx/"> Coinbase to delist six altcoins, including OOKI and VGX </a> 
Wintermute CEO Evgeny Gaevoy also recently pointed out that the difference in USDC’s issuance model compared to USDT may have affected the USDC market cap. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Keep seeing people reposting this. I think you got it exactly other way round. Because you can’t easily mint tether on weekends, people sell it against USDC to get liquidity. Nobody is printing new USDT afterwards. Also tether has 0.1 mint fee, not only redeem fee— wishful cynic (@EvgenyGaevoy) <a href="https://twitter.com/EvgenyGaevoy/status/1687858738877579264?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">August 5, 2023</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
The slump in the stablecoin’s market value comes even as its issuer, Circle, sold a minority stake to the Coinbase (COIN) crypto exchange. 
As <a href="https://crypto.news/coinbase-invests-in-stablecoin-operator-circle/" target="_blank" rel="noreferrer noopener">reported</a> by crypto.news, Coinbase entered into a strategic agreement with Circle on Aug. 21 that would lead to the dissolution of <a href="https://treasury.gov.au/sites/default/files/2022-12/c2022-259046-centre_consortium.pdf" target="_blank" rel="noreferrer noopener">Centre</a>, a member-based consortium founded in 2019 that was responsible for the governance and issuance of USDC. 
According to the partners, the decision to dissolve Center was informed by growing regulatory clarity around stablecoins in the U.S. 
Following the agreement, Circle will now be fully responsible for issuing, supplying, and managing USDC. It also stipulates that the two companies will share equally profits made from USDC collateral held outside their respective platforms. 
Furthermore, Circle <a href="https://www.circle.com/blog/ushering-in-the-next-chapter-for-usdc" target="_blank" rel="noreferrer noopener">disclosed</a> that it would be integrating USDC onto six new blockchains in the next few weeks. The stablecoin already has a presence on Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noreferrer noopener">ETH</a>), Solana (<a href="https://crypto.news/price/solana/" target="_blank" rel="noreferrer noopener">SOL</a>), Algorand (<a href="https://crypto.news/price/algorand/" target="_blank" rel="noreferrer noopener">ALGO</a>), and Avalanche (<a href="https://crypto.news/price/avalanche/" target="_blank" rel="noreferrer noopener">AVAX</a>), among others. 
 Read more: <a href="https://crypto.news/coinbase-invests-in-rocket-pool-rpl-rises-8/"> Coinbase invests in Rocket Pool, RPL rises 8% </a>

USDC market cap hits two-year low even after Coinbase stake

crypto.news

Other articles published on Aug 27, 2023

Vault Music to Transform the Music-Sharing Life with Web3 Tech

Serokan Whale XRP Semakin Dalam, Harga Bisa Sentuh US$0,6?

Analyst Issues Warning for Dogecoin and Shiba Inu – Here’s What Next For DOGE and SHIB Price

Binance Carries Out Lie Detector Test on Cristiano Ronaldo

Bitcoin Spark: Challenging Shiba Inu’s Dominance with Revolutionary Features

Expert Insights on Ethereum: Should You Buy the Dip or Short the Top?

Join our free newsletter for daily crypto updates!