Circle’s USDC (USDC), the second-largest stablecoin, has reached a record market capitalization over $56 billion as demand from investors continues to soar.
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USDC has added $10 billion to its market cap over the last 30 days, driven largely by rising Solana-based DeFi trading volumes. USDC’s growth has been more than double the $4.6 billion rise in the market cap of Tether’s USDT, the largest stablecoin and Circle’s chief rival, during the same period.
Tether still dominates the stablecoin market with a market cap of $142 billion. Stablecoins are cryptocurrencies whose price is tied to another asset, typically the U.S. dollar or gold bullion. Stablecoins such as USDT and USDC are widely used for trading on crypto exchanges and serve as a key source of liquidity for the marketplace.
Growing Crypto Demand
The growth of Circle’s USDC stablecoin is a sign of expanding demand for cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), say analysts. And the growth of USDT and USDC has accelerated in recent weeks.
The gains have coincided with the frenetic trading of Bitcoin and other cryptos, both buying and selling. Analysts say accelerating stablecoin growth is a bullish sign for the overall crypto market and positions it for continued gains. BTC has risen 88% over the last 12 months.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has risen 11.63% in the last 12 weeks.
