The USDC stablecoin has seen a significant uptrend in the cryptocurrency market this month, leading to a remarkable surge in its market capitalization.
Let’s delve into the recent performance of this stablecoin.
Recent data from CoinMarketCap reveals that USDC witnessed an increase of approximately $2.34 billion in its market cap over the past week, surpassing its previous highs from September and reaching its peak for 2024.
Even though USDC hit a new high for 2024, it still falls short of its previous all-time high of $55.82 billion.
This milestone was reached during the 2022 bearish phase, marked by a flight to stablecoins as a safe haven amidst market volatility.
What’s driving the surge in the USDC market cap this time around? Several factors could be contributing, with the heightened demand for cryptocurrencies playing a significant role.
This surge in demand indicates a greater need for stablecoins to facilitate liquidity flow into cryptocurrencies like Bitcoin [BTC] and alternative coins.
Besides the escalating liquidity requirements, the interest in USDC may also be growing due to the popularity of yield farming. Certain DeFi platforms incentivize users by offering rewards for holding stablecoins like USDC on their platforms.
Diverse Distribution of USDC across Various Networks
The majority of USDC in circulation is concentrated in the Ethereum ecosystem, accounting for approximately $25.09 billion or 67.69% of the total supply. The Base network, one of the fastest-growing blockchain networks in 2024, follows closely behind.
Securing the second position is the Solana network, with 2.806 billion USDC, equivalent to 7.57% of its overall supply.
USDC has successfully retained its second position among the most dominant stablecoins, trailing behind USDT, the market leader.
As of November 9th, USDC’s dominance stood at 20.83% of the total stablecoin market capitalization, still significantly lower than USDT’s commanding 69.17% share.
In essence, USDC has a considerable journey ahead to potentially claim the top position in the stablecoin realm.
Looking ahead for USDC, the stablecoin could witness further growth in the coming months, especially if the cryptocurrency market sees increased activity.
During bullish phases, the demand for stablecoins tends to surge, signaling potential growth opportunities for USDC.