After a turbulent 2023, stablecoin USD Coin (USDC) is showing signs of recovery in 2024, with its supply increasing since the beginning of the year. Additionally, the daily number of USDC transfers has seen growth.
USDC circulating supply has seen a net increase recently, an impressive move since the Silicon Valley Bank (SVB) crisis last year, as per data released by Glassnode.
After a very notable drop in coin and market supply last year, stablecoin supply has seen an increase of $1.23 billion since the beginning of this year. The survey highlighted that the current circulating supply of USDC was 25.86 billion USDC, up 6% in the last 25 days.
After the unexpected collapse of Silicon Valley Bank, the USDC stablecoin ended up suffering a devastating blow to its market share.
It is worth remembering that in March 2023, the second largest stablecoin on the market, USDC, from Circle Internet Financial, had a collapse in its 1 to 1 peg with the US dollar due to the bankruptcy of Silicon Valley Bank, which held a non- revealed of the digital currency’s cash reserves. With a market capital of $42 billion, USDC plummeted to $0.90 on the USDC/USDT trading pair on Kraken, the lowest price since April 2021. At the time, the stablecoin’s instability worried investors and currency watchers. cryptocurrency industry.
In a statement at the time, Circle highlighted that Silicon Valley Bank was one of six banking partners the company used to manage the approximately 25% portion of USDC reserves held in cash.
At the time of publication, the price of USDC was quoted at US$1.00 with an increase of 0.2% in the last 24 hours. During this period, the cryptocurrency recorded a trading volume of US$5,376,473,617.
Circle USDC Analysis: Growth Trajectory and Challenges in the Stablecoin Market
Circle, one of the leaders in the stablecoin market, recently published a detailed report on the state of the USDC economy, its stablecoin. Since its launch in 2018, USDC has seen remarkable growth, as illustrated in the company’s 23-page report. This document highlights the significant developments and changes that stablecoin has experienced over the years.
One of the report’s main revelations is the 59% increase in the number of wallets holding more than $10 in USDC over the last year, reaching a total of 2.7 million. Circle also recorded an impressive 595 million transactions by the end of November 2023. This growth demonstrates the growing adoption of USDC as a viable and reliable financial tool.
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