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The $3 billion USDC inflow brings the stablecoin’s cumulative supply to about $14,4 billion, accounting for more than a quarter of Tether’s market cap.
On April 30, more USD Coin (USDC) was printed than at any other time in the history of the dollar-backed stablecoin, with just over $3 billion minted in a single day.
The new USD When a buyer trades their US dollars for the stablecoin, coins are minted, and Friday’s influx amounted to more than 26 percent of the stablecoin’s market cap at the time.
The unexpected entry of $3 billion in USDC into the cryptocurrency industry coincides with a thriving altcoin market, as demonstrated by Bitcoin’s (BTC) decline to its lowest market cap domination in two and a half years.
Bitcoin’s domination of 47.79 percent on Friday was the lowest since August 2018, as Ethereum (ETH), Binance Smart Chain (BSC), Cardano (ADA), and other cryptocurrencies have seen their market capitalizations soar since the beginning of the year. Bitcoin’s domination peaked at more than 70% in early January and has been steadily declining since.
The value of USD Coin in circulation increased from $11 billion to almost $14.4 billion on Friday, giving USD Coin a market cap worth 28% of the most widely used stablecoin, Tether (USDT), which has over 50 billion in circulation. In August 2020, USD Coin had a market cap worth one-tenth that of Tether, indicating that traders have found a clear need for USDC, perhaps at the cost of USDT.
Circle, which co-founded USD Coin with well-known cryptocurrency exchange Coinbase, recently revealed that it had enlisted the help of New York-based Signature Bank to insure that USD Coin is adequately backed by reserves. The USD Coin is backed by a combination of cash and short-term US Treasury notes.