The global market cap for USD Coin (USDC) has topped $2 billion, doubling in size in just the past two months. On-chain transaction volume now stands at more than $115 billion since launching in 2018. What's driving all this demand?
USDC has become a de facto standard in a number of industry segments due to its reliability, security, transparency and backing of regulated financial institutions. Demand is also spreading more broadly, driven by secular trends and increased mainstream awareness of the benefits of USDC, including near-instant settlement, low-cost global and interoperable transactions, and 24/7 availability.
Dollarization continues to fuel demand for digital collars around the world. As many currencies continue to strain under macro conditions and show increased volatility, businesses and institutions are pursuing strategies to access US dollars. USDC has emerged as one of the most efficient and effective vehicles in the flight to safety.
Crypto trading, which helped bootstrap early growth of stablecoins, now relies on digital dollars as a critical piece of market infrastructure, spanning an incredibly diverse set of trading and hedging use cases. And, this is not to mention the white hot DeFi/CeFi lending and credit markets, which have come to represent one of the strongest and fastest growing sources of USDC demand on a global basis.
But, probably the best indication of USDC's growth trajectory is the diverse array of industry segments and business use cases represented in the USDC stablecoins ecosystem, from banks and fintechs, to digital securities, gaming, and the list goes on.
We are very happy to see these trends take shape with organizations of all sizes now taking advantage of Circle's business account and platform APIs to build a new generation of financial services and commerce applications that hold the promise of raising global economic prosperity for all through programmable internet commerce.
More about USDC
USDC was introduced by the Centre Consortium, an organization co-founded by Coinbase and Circle, in order to establish an open standard for fiat on the internet and provide a governance framework and network for the global, mainstream adoption of fiat-backed stablecoins.